AKSU Journal of Agricultural Economics, Extension and Rural Development
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
Abstract
A digital credit system, especially in rural areas without banks and other financial institutions, can assist address concerns with agricultural output. It opens up a route for farmers to access a variety of financial banking services close at hand, easing the problem of loan availability in agricultural production. Primary data were collected through a multi-stage sampling technique from 240 respondents to identify the constraints farmers face in the use of Digital Credit Systems in Akwa Ibom State, Nigeria. Data were analyzed using descriptive statistics and a Likert scale. Findings indicated that Crop enterprise was the major (63.7%) enterprise practised in the study area by both digital credit users (21.66%) and nondigital credit users (42.10%), and there was a high awareness (77.5%) of digital credit systems among farmers in the study area but (32.9%) of the farmers had access to it which was low. The low access to the digital credit systems by the respondents in the study area was a result of unstable power supply, unstable network, loan duration, interest rate, phone ownership, and ease in the use of digital credit platforms, which were identified to be the major constraints faced by farmers in accessing digital credit in the study area. This revealed the need for digital credit service providers to offer pertinent information about the platform and what it offers its users, as well as to develop a platform that can be easily operated, having flexible terms and conditions, favourable interest rates, collateral requirements, and loan duration to promote accessibility. Additionally, the lack of public infrastructure in the study area such as roads and other kinds of public infrastructure, should be taken into consideration by the government and public-private partnership.