Effect of the Usage of Mobile Money Services on Smallholder Rural Households` Welfare in Oyo State, Nigeria

Abstract

The study assessed the effect of the usage of mobile money technology on the welfare of smallholder household farmers in Oyo State, Nigeria. Primary data was used to achieve the study objectives. The data was collected through the use of structured questionnaire. A three stage sampling technique was used in selecting the sample for the study. A total number of 120 smallholder farmers across the selected villages in Oyo State, Nigeria were selected. The study utilized descriptive and inferential statistics in its analytical technique. The result of the study revealed that mobile money service were used for airtime purchase, fund transfer, purchase of farm inputs, bill payment, savings, cash withdrawal, remittance and payment of farm workers. The empirical results of the study show that the determinants of the usage of mobile money service by the respondents include age, gender, years of education and access to credit. The results of the effect of mobile money service usage on food security revealed that mobile money service usage, age, gender, years of formal education and access to credit significantly influenced food security in the study area. Also, Mobile money usage, age, household size represented by adult equivalent, access to credit and distance to the nearest banks were factors that significantly influenced household expenditure. The study concluded that usage of mobile money service significantly affect household welfare of farming households in the study area. These results suggest that access and usage of mobile money service can help to improve smallholder farmers` household welfare.