Financial Literacy of Rural Farming Households in Kwara State, Nigeria: A Guide for Financial Inclusion

Financial literacy among farming households is an important factor in making headway in agriculture. However, the lack of in-depth knowledge about the level of financial literacy among rural farmers poses a great challenge to agricultural development. Therefore, this study assessed the financial literacy rate among rural farming households in Kwara State, Nigeria. Data were collected from 210 rural farming households, selected through random sampling techniques, and a structured questionnaire was used. Descriptive statistics, the Likert rating scale, a multiple regression model, and Garrett's ranking technique were used to analyze the data. The study revealed that the radio was the most widely used source of information on financial literacy among farming households. It also revealed that the significant factors that influenced the level of financial literacy among the farmers were age, sex, educational level, training in financial management, distance to the nearest financial institution and number of dependants in the household. Besides, the farmers perceived that the major constraints to their level of financial literacy were: inadequate knowledge about financial products and services; psychological influence; poor banking system; political instability and insecurity. This study, therefore, recommends that measures should be put in place to improve the financial literacy of rural farming households.