EFFECT OF FINANCIAL LITERACY ON AGRICULTURAL VALUE CHAIN IN NIGERIA: A CASE STUDY OF GIWA LOCAL GOVERNMENT AREA, KADUNA STATE

Abstract

The study assesses the relationship between financial literacy and value chain in agriculture
as well as its impact on agricultural value chain in Nigeria. The target population was
Panhauya which is a ward under Giwa Local Government Area of Kaduna State. The study
used primary data collected through stratified random sampling from semi-structured
questionnaire and the sample size of 74 farmers was captured. Descriptive statistics was used
to analyze the quantitative data while qualitative data were analyzed using content analysis,
all analysis were done using Statistical Package for Social Sciences (SPSS Version 20.0). The
study also used multiple linear regression and Chi-square tests to assess the effects of
financial literacy on agricultural value chain. Financial literacy has a positive as well as a
significant impact on value chain in agriculture. The study recommends that Government
agencies, regulatory bodies, Non-Governmental Organizations as well as relevant financial
institutions should embark on a National Campaign and Training with specific objectives of
creating commercial awareness and improving financial literacy among farmers across the
country especially on relevant services of financial institutions like agricultural insurance,
financial planning, debt management, etc. The study also recommends that financial
education be added into curriculum of primary and secondary schools, to enhance
agricultural value chain in Nigeria.