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
This study examines the determinants of financial inclusion among rural population in Akwa Ibom State, Nigeria. Specifically, the study examined the socio-economic characteristics of respondents as related to savings and electronic payments, ascertain the instruments of financial inclusion and their level of use by target beneficiaries and estimate the factors that influence financial inclusion. A multi-stage sampling technique was adopted in selecting a sample size of 243 respondents while two sets of structured questionnaires were used to elicit data from respondents. Data analysis was done using mean, frequency, percentages and Tobit regression. The result shows that the majority (65.02%) of the respondents were males, married (64.6%) with 51.85% having secondary education and a mean age of 40years. Savings account, point of sale (POS) terminals and mobile payments were widely used as instruments of financial inclusion. Tobit analysis results on factors of financial inclusion were cost (p<0,01), liquidity (p<0.01), education (p<0.05) Saving conscious (p<0.01), sex (p<0.05), distance (p<0.05), network failures(-p<0.01) income (p<0.10) and convenience (p<0.10). The significant factors such as cost, liquidity, education, saving consciousness, sex, distance, network failures, income and convenience that influenced financial inclusion should be considered in policy issues and this important instrument of inclusion should be popularized by all stakeholders.