Abstract
The study analyzed financial inclusion and livelihood diversification among crop farming
households in Borno State, Nigeria. Multi-stage sampling technique was used to select 490
respondents for the study. Data were collected through the use of a structured questionnaire,
and were analyzed using both descriptive statistical tools (frequency, percentages, mean,
minimum and maximum values) and inferential statistics (ordered logit regression model). The
result revealed that 75.3% of the respondents are male with 52% aged between 31-40 years
and the average age was 41 years. Majority of the respondents (63.7%) are married with
average household size of 8 persons. Also, about 69% of the respondents had attended one
form of education or another ranging from primary to tertiary education. Similarly, majority
of the respondents (63.3%) had between 11-20 years farming experience with an average farm
size of 1.6ha. Also, the respondents have an average annual household income of ₦453,000.
The ordered logit regression revealed that financial inclusion variables such as using bank
account (p<0.01), employment status (p<0.05), financial literacy (p<0.05), possession of skill
(p<0.01), cooperative membership (p<0.05), distance to financial institution (p<0.01) and
remittance (p<0.001) positively influenced livelihood diversification in the study. The study
concluded that, there is a strong link between financial inclusion and livelihood diversification
among crop farming households to earn income for a better wellbeing and economic
sustainability. The study recommended among others, the need for both private and state
stakeholders to establish policies that will support and enhance rural households financial
inclusion status.
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