Perceived Effect of Nigeria's Cashless Policy on Agricultural Activities Among Rural Farmers in Ondo State, Nigeria

This study examined the perceived effect of Nigeria’s cashless policy on agricultural activities among rural farmers in Ondo State. A multistage sampling procedure was used to select 120 respondents from five communities (Oka, Supare, Oyinmo, Ilepa and Ikun Akoko) from Akoko South West and Akoko North East Local Government Areas. Data collected were subjected to descriptive and inferential statistical analysis. Findings from the study revealed that the cashless transaction methods majorly used were credit and debit cards (X̄=2.60), mobile apps (X̄=2.58) and mobile money services (X̄=2.55). Most of the respondents also agreed that increased charges for every cash withdrawal (92.5%), connectivity issues (90%), fraud (88.3%) and dependence on cash transactions and limited point of sales (86.7%)) were notable challenges in the study area. Respondents also agreed that cashless policy is not convenient to carry out agricultural transactions (X̄=2.87), that there is lack of familiarity and understanding of digital payment by the farmers (X̄=2.64) and that there is potential delays and complications in receiving payment on agricultural sales (X̄=2.14). However, they disagreed that there is potential disruption of traditional cash-based payment (X̄=1.35). It was therefore recommended that banks should also make cashless transactions more user friendly for farmers considering the fact that most farmers are not well educated. Also, banks should organise awareness campaigns so as to enlighten the farmers especially elderly farmers on the benefits of cashless transactions.