Role of Financial Inclusion in Sustainable Agricultural Development

Abstract

The potential contribution of the agricultural sector to sustainable development in Nigeria is yet to be realized as agricultural productivity in the country is still relatively low when compared with the rest of the world. The country’s agricultural productivity and growth is hindered by limited or insufficient access to credit facilities among rural farmers. Without credit access, farmers may be unable to bear the risks and upfront costs associated with the innovation and investment necessary to enhance productivity, income and well-being. The low performance of the sector also results in increased poverty, undernourishment and food insecurity. This study x-rayed the role offinancial inclusion, particularly credit access, in addressing this challenge. Data was obtained from secondary sources including the Central Bank of Nigeria (CBN), Enhancing Financial Innovations and Access (EFInA), and the World Bank. The results indicate that an effective financial inclusion strategy is germane to the achievement of sustainable agricultural development in the country.

Key words: Financial inclusion, Credit, Agriculture, Nigeria