Analyzing Farmers' Awareness and Perceptions of Digital Financial Services (DFS): A Step Towards Digital Agricultural Financing

Digital Financial Services (DFS) have the potential to revolutionize access to financial resources for smallholder farmers in Nigeria, thereby improving financial inclusion. This study examined farmers’ awareness, perceptions, and use of Digital Financial Services (DFS) as a pathway toward strengthening digital agricultural financing in North-Central Nigeria. Specifically, the study identified the types of DFS available to farmers, assessed their awareness of these services, analyzed farmers’ perceptions of DFS, and examined the determinants of their perception. A multistage sampling procedure was used to select respondents, and data were analyzed using descriptive statistics and multiple linear regression. Findings revealed varying levels of awareness across DFS types. Agent banking services recorded the highest awareness (61.8%), while mobile-based microloan services had the lowest (21.4%). In terms of usage, POS (90.4%) and ATMs (90.3%) were the most widely used, whereas e-wallet adoption remained relatively low (43.8%). Perception analysis showed that most farmers viewed DFS as easy to use, beneficial for farm financial management, and capable of improving convenience and efficiency. The regression model (R = 0.617; R² = 0.380) indicated that variables such as age, education, mobile-phone ownership, internet access, farming experience, and DFS awareness significantly influenced farmers’ perceptions. The study demonstrates that while farmers largely rely on assisted digital channels like POS and ATMs, they show strong willingness and confidence to engage more fully with digital platforms when usability, security, and accessibility are enhanced. The study contributes evidence that improving awareness, strengthening digital literacy, and expanding rural connectivity can significantly accelerate DFS adoption and, ultimately, promote inclusive agricultural financing in Nigeria.