Relationship between Access to Agricultural Extension Services and Financial Inclusion Status of Agricultural Households in Nigeria

This study examined the relationship between access to agricultural extension services and the financial inclusion status of agricultural households in Nigeria using data from the fourth wave of the World Bank Living Standards Measurement Survey (LSMS). Specifically, the study identified the range of financial services available to agricultural households in Nigeria, determined the financial inclusion status, and examined the influence of access to extension services on the financial inclusion status. The study employed descriptive statistics, Alkire and Foster method, and probit regression model. Results revealed that only 16% of the agricultural households have access to credit, 43% hold a personal savings account, 34% save through formal financial institutions, 31% receive remittances, and 45% have access to extension services. There was a significant positive association between access to extension services (t=2.69) and financial inclusion. Other influencing factors include education (t=4.16), wealth (t=8.53), location of residence (t=2.49), and number of income generating activities (t=3.73). Enhancing access to extension services can play a crucial role in improving the financial inclusion status of Nigeria’s agricultural households. Improved access to extension services to enhance farmers’ financial literacy and encourage financial inclusion.