Article Sidebar
Published:
Aug 10, 2023Keywords:
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
NAJ supports free online communication and exchange of knowledge as the most effective way of ensuring that the fruits of research and development practice are made widely available. It is therefore committed to open access, which, for authors, enables the widest possible dissemination of their findings and, for readers, increases their ability to discover pertinent information. The Journal adopts and uses the CC: BY license and is open access. This license lets others distribute, remix, adapt, and build upon your work, even commercially, as long as they credit you for the original creation. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the Journal’s published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. Copyright for articles published in this Journal is retained by the Journal.
Main Article Content
Effects of Financial Inclusion on Ownership of Productive Assets among Cassava Processors in Oyo State, Nigeria
Abstract
This study investigated the level of productive asset ownership and the effects of financial inclusion on the ownership of productive assets among cassava processors in Oyo State, Nigeria. The study utilized primary data from 336 cassava processors selected through a multistage sampling procedure in Oyo State. Data were analyzed with descriptive statistics, principal component analysis to generate the respondents' index of productive assets ownership, and an ordered logit regression model to determine the effects of financial inclusion indicators and other socio-economic characteristics on respondents' level of asset ownership. The estimated cassava processing asset ownership index revealed that most respondents have a low level of cassava processing asset ownership. Specifically, ownership of important cassava processing assets like grinding machines, hydraulic pressers, and drums was low compared to the respondents' ownership of sieves and frying pots. The estimated coefficients of the ordered logit regression model indicate that financial inclusion indicators importantly and positively influence the likelihood of productive asset ownership. The ownership of bank accounts, bank savings, and improved credit access will significantly increase the probability of cassava processing asset ownership. Similarly, the possibility of cassava processing asset ownership was found to also increase with the increase in age, male gender, cassava land area cultivated, household income, native residency status, and household size, among others. Thus, this study recommends that the government and other relevant stakeholders make credit facilities more available and accessible to cassava processors. The cassava value chain actors should also be encouraged to adopt formal banking services. This will enhance the level of financial inclusion in the cassava value chain in the country while also helping to improve the respondents' investment in the necessary cassava processing assets to enhance the efficiency and profitability of the cassava processing value chain in Nigeria.
