Back to the Land: The Impact of Financial Inclusion on Agriculture in Nigeria


School of Management & Social Sciences, Pan-Atlantic University, Lagos, Nigeria



an rural financial inclusion enhance agricultural growth? This study, using annual data over the period 1981-2014 and the ARDL bounds testing approach, captures the long run as well as the short-run dynamics of the relationship between financial inclusion and agriculture in Nigeria. The results show that usage of financial services has significant impacts on agriculture both in the short and the long run, meaning that for sustainable agricultural development in rural areas, improving financial inclusion is critical. On the contrary, access to finance has insignificant impacts on agricultural growth. The message is: While provision of access to finance to rural farmers could have many benefits, it is more important to consider the usage of the finance in the rural settings and its impact on rural outcomes that we care about. There is a need for more traditional and non-traditional financial service providers to go back to the land and innovate in the Nigerian agricultural space in order to boost financial inclusion in Nigeria while also substantially reducing poverty and stimulating agricultural growth. 


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