Socio-Economic Determinants and Impact of Utilising Digital Financial Services Among Cocoa Farmers in Ondo State, Nigeria

Digital Financial Services [DFS] are increasingly promoted as a pathway to enhance financial inclusion and improve the livelihoods of smallholder farmers. Despite this, there is limited empirical evidence on their utilisation in cocoa-producing communities in Nigeria. This study therefore examined the socio-economic determinants of digital financial services utilisation among cocoa farmers in Ondo State, Nigeria. A three-stage sampling technique was employed to select 256 cocoa farmers, based on the predominance of cocoa production, yielding 16 communities and data were collected using structured interview schedule. Frequency, mean, standard deviation, pie chart and multiple regression analysis were used to analyse the data. The findings revealed that respondents were predominantly male [85.94%] and married [83.59%]. A majority had attained secondary [60.16%] or tertiary [25.39%] education. Farmers exhibited varied patterns of DFS usage, with POS transactions [85.94%], ATM Services [73.44%], mobile banking [65.63%] and USSD banking [63.67%], being the most commonly used channels. The most frequently utilised DFS activities are to receiving cocoa sales payments via bank transfer or mobile app (x̄=4.35±3.36, ranked 1st) while use of POS for cash withdrawal or payment (x̄=4.22±1.24, ranked 2nd) and buying farm inputs through digital payment (x̄=3.92±1.39, ranked 3rd). The regression results showed that education [B = 6.01, p = 0.01] and monthly income [B = 3.074E-07, p = 0.04] were significant positive predictors of DFS utilisation. The study concludes that education and income are critical determinants driving DFS utilisation among cocoa farmers. To deepen digital financial inclusion in cocoa-producing communities, it is recommended that stakeholders prioritise digital financial literacy training, implement income-enhancing programmes, and adopt gender-sensitive outreach strategies. Furthermore, improving rural digital infrastructure and developing DFS products tailored to farmers’ cash-flow patterns will enhance utilisation and maximize the benefits of DFS for productivity and household welfare.