ABSTRACT
This study assesses the effectiveness of the usages of mobile phones-based innovation in the e-wallet programme-powered by the Growth Enhancement Support Scheme which was designed by the Nigeria Government to facilitate and improve farmers’ prompt access to agricultural information and input services using Abia state as a case study. One hundred and forty farmers were randomly selected in this study. Majority of the respondents were 55.3% male with farming experience of at least 15-20 years. Benefits of the program included quick accessibility of improved and subsidized inputs, increased production. The shortcomings of the program, however, include low level of awareness, telephony network failure, low density coverage of agro-dealers and supply of fertilizer and other agricultural inputs. To enhance farmers’ productive capacity, the study recommends a e-wallet awareness campaign, improvement of rural telephony networking for improved interconnectivity and the scaling up of the quantity of input supply by government to accelerate and increase the production capacity of the farmers.
TABLE OF CONTENT
Content
page
Title
page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table
of content vi
List of
Tables vii
Abstract
viii
CHAPTER ONE
INTRODUCTION
1.1 background
of the study 1
1.2 statement
of problem 7
1.3 objectives
of the study 8
1.4 Research
questions 9
1.5 Research
hypothesis 9
1.6 Significance
of the study 10
1.7 Scope
of the study 10
1.8 Limitations
of the study 11
1.9 Definition
of terms 11
CHAPETR TWO
LITERATURE NREVIEW
2.1
Concept of adoption 13
2.2
Farmers behavior towards the agricultural technology adoption 14
2.3
Technology in agriculture 16
2.4
Role of ICT in agricultural sector 17-19
2.5
Barriers/limiting factors to the use of agricultural technology 20
2.6
E-wallet and its effectiveness 20-22
2.7
GESS 22
2.8
Challenges of e-wallet 23-24
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Research design 25
3.2
Area of study 25-26
3.3
Sampling procedure 26-27
3.4
Sources of data 27
3.5
Method of Data Analysis 28
CHAPTER FOUR
RESULT AND DISCUSSION 29
CHAPTER FIVE
CONCLUSION AND RECOOMENDATION
5.1
Conclusion 52
5.2
Recommendation 53
Reference 54
LIST OF TABLES
4.1
General description
4.2
voucher collection
4.3
Rate of information on e-wallet
4.4
Extent of interest on adoption of ICT in e-wallet programme
4.5
Distribution of the respondents according to electricity barrier
in
adopting ICT
4.6
distance of place of purchase of farming/agricultural input
4.7
Factors that affect the adoption of ICT in the e-wallet programme/critical
success
4.8
Hypothesis
4.9
Hypothesis two
4.10
Hypothesis three
4.11
Hypothesis four
4.12
Hypothesis five
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the
study
With
the growing incidence of poverty from 54.4 percent to 69.0 percent in 2012, and
dwindling agricultural productivity, the growth and survival of agriculture
have become a topical issue and occupies the center stage of policy discourse.
This is precipitated on the fact that agriculture is a veritable platform to
ensure food production, food security and rural development because its
objective is to guarantee food security, employment opportunities and provide
income for many households. For
instance, agriculture contributes significantly to the Gross Domestic Product
(GDP) of Nigeria (Patachu 2012) and provides employment for up to 70 percent
(Njoku, 2012).
However, it is disheartening that
agricultural sector which contributed as high as 65.7% of 1957 Gross Domestic
Product (GDP) has dropped to 22% in 2014; representing 43.7% decrease. This may
have contributed to the predicted drop in growth of real GDP from 7.8% in 2011
to 7.6% in 2012 (NBS 2011). With this development, it is debatable if the
country will be able to ameliorate the challenges of food security faced by
Nigerians considering the gap in food requirement growth rate of 3.5% and 3.18%
population growth in Nigeria (FOS 1996; Ojo 2003 and Nto and Mbanasor, 2011),
since this growth lies below the 10% necessary for attaining food security and
poverty reduction (Nwajiuba, 2013).
Consequent
upon that Nigeria food sub sector has growing at 2.0, while its population is
growing at 3.3 per cent (NBS, 2012). This has implication on the country’s
ability to feed its growing population, widening income inequality and economic
development. As a measure to reverse this trend, government has through
numerous policies and programme seek to address this challenge. Such programmes
include but not limited to Rural integrated agricultural development programme
(ADP), Green Revolution programme (GR), Agro service Center Programme (ASC), National
Seed Service (NSS), Operation Feed the Nation (OFN), Directorate of Food, Road
and Rural Infrastructure (DFRRI) and 2011 presidential initiative on cassava,
yam, rice vegetable oil etc. all these are production policy led strategy aimed
at improving agricultural productivity. Unfortunately, these policies and
programmes have not achieved their desired intent due in part to elite hijack,
bad governance and corruption (Sule, 2012) among other challenges.
To
check the growing concern over corruption and arbitrary control of marketing
intermediaries in the management and distribution of farm inputs such as
fertilizer to rural farmers and increase agricultural productivity, Growth Enhancement
Scheme (GES) of Federal Ministry of Agriculture in response to global
increasing importance of technology in business adopted and adapted Information
and Communication Technology (ICT) in agriculture. The potentials of ICT/GSM in
creating socio-economic opportunities and strengthened networks with potency to
poverty alleviation have been variously studied (see CAT, 2004; Donner, 2006;
Saunder et al., 1994). The adoption of information and communication
technologies (ICTs) promise many benefits to the famers, which include among
others increasing people’s knowledge of market information; improving the
coordination of transportation, especially during emergencies; and enhancing
the effectiveness of development activities (Saunder et al., 1994).
Electronic
Agriculture (e-agriculture) is an emerging field focusing on the enhancement of
agricultural and rural development through improved information and communication
processes (Kemiyi and Moya 2011). The importance of ICT in agriculture cannot
be over emphasis. ICTs offer to facilitate technological adoption, to transmit
information about new seed varieties, inputs and information about new markets
and market prices at a relatively low cost, hence having a significant
contribution to agricultural growth (Ansoms 2008). E-agriculture is also a tool
in e-wallet.
Nigeria
is the first country in the world to develop the e-wallet system to reach
farmers with subsidized inputs. The system unleashed a market revolution, as
seeds and fertilizer companies, for the first time ever, rapidly developed
their Electronic Wallet System (e-wallet) which allows farmers to get their
seeds and fertilizer using electronic vouchers sent directly via their mobile
phones. However, a large proportion of these inputs could not be reached to
farmers, as a result of the high level of corruption, insincerity and political
interruption in the channel of distribution. (Adesina 2013) pointed out that
the old system used in supplying inputs to the farmers are weak, inefficient
and fraudulent, hence a large proportion of the farmers could not benefit from
it.
Behavioral
model in agriculture seek to understand the behavior of individual
decision-makers, usually the farmers or land managers directly responsible for
the land, focus on psychological construct such as attitudes, values and goals
but also gather additional relevant data on farm structure, economic situation,
succession status which will contribute to decision making by the Federal
Ministry of Agriculture (oluloye 2008).
Although
agriculture and natural resources are deemed to continue being the key drivers
of Africans economic growth. It is the application of modern technologies that
is considered to have the most significant impact on the growth trajectories of
most African economies. Kimeyi and Moyo (2011) stressed that technologies
provide great opportunities for growth in service sectors such as agriculture,
health, education, banking and insurance. This being the case, countries has
identified ICT as an important component in moving the countries’
subsistence-based economy to service-sector driven, high value added information
and knowledge based economy, that can compete effectively on the global market
(Ansoms 2008).
Exchanging
information is critical for stakeholders in agricultural value chains due to
its nature, as it is the key for establishing, developing and managing efforts
to improve their competitiveness in local and international markets. In this
regard, information and communication technologies (ICTs) are effective tools
and in several cases, also innovative to facilitate the exchange of information
in the value chains. ICTs certainly play a key role to contribute to reduce
asymmetries of information and communication between stakeholders of an
agricultural value chain and to help reduce the vicious circle of rural
poverty.
Various
studies have shown that composed manure is made and used under the supervision
of extension programmes of sustainable land management initiatives. And yet the
rate of adoption by farmers in rural areas has remained low. This low adoption
is mainly because farmers are not fully aware of the benefits of composed
manure and yet, and often lack the resources to use it.
In
Nigeria, empirical studies on agricultural technology adoption suggest that
factors such as socio-economic characteristics of farmers, access to credit, or
cash resources and information from extension and other media influence
adoption rate of new agricultural technology among farmer (Ayinde et al 2010).
He found that education level of farmers, farming experience, farm size, access
to extension and access to credit have significant and positive influence on
adoption of Ict.
In
order to reverse the dwindling or declining agricultural productivity and
improve efficiency, Otegbulu (2008) suggested two major approaches. First, the
technological approach which implies the type of technology that will improve
efficiency and access to resources utilization. This was seen as the thrust
behind the introduction of e-wallet programme of Federal Ministry of
Agriculture and Rural Development (FMARD). The e-wallet was introduced by the
growth enhancement scheme (GES) which is an efficient and transparent
electronic device system that makes use of voucher is used to redeem
fertilizers, seeds and other agricultural inputs from agro-dealers at half the
cost (signal Alliance 2014). The second approach is the behavioral approach,
which implies a change in the ways we do things.
Adesina
(2012) the Minister of Agriculture based on survey carried out through Growth
Enhancement Scheme (GES) on large samples from various government areas in 13
different states showed that 71% of sampled farmers in the rural areas did not
have mobile phone, which in effect excludes them from the benefit of GES
e-wallet platform. He argued that the e-wallet project will serve as an avenue
to educate, inform and communicate with farmers I rural areas across the
country on the latest and best agricultural practices, as well as the current
prices of commodities in the market.
1.2 Statement of problem
Food
production in Nigeria has not kept pace with its population growth, because the
population is growing at about 3.3 per cent per annun, while food production is
about 2.0 per cent (NBS 2011) which can result in cultural practices such as
bush burning which reduces the plant nutrient, excessive use of fertilizers,
planting of crops in a wrong soil, etc.
The
cost of procurement, awareness, lack of involvement of farmers both in the planning
and implementation of information and communication technology projects,
physics, and network infrastructure among others are barriers to rural
information and communication technology usage in places where such has taken
off. Anti intellectual in culture i.e. they don’t believe in learning, farmers
perceptions towards farming with mechanized equipment. Inadequacy of skill
personnel should also be addressed which is as a result of high level of
illiteracy because don’t know how to use the mechanized equipment. The rate of
adoption is low because farmers are not fully aware of the benefits and often
lack the resources to use it. Adoption rate is low among farmers due to they
are not aware of the benefit they will derive from the use of ict and e-wallet
and the cost of acquiring the farm inputs. Most farmers lack experience or does
not have farming skills in using the ict and e-wallet programme and as a result
are been exploited by channel of distribution. Most farmers in the rural areas
are fragmented, have low input and output and most of their farming techniques
and tools are low and old.
Before
the adoption of e-wallet, farmers were been exploited as a result of corruption
among the channel of distribution. (Adesina 2013) pointed that the system
whereby input and fertilizer are distributed by the channel of distribution was
insufficient, insincere and fraudulent.
1.3 Objectives of the
study
The
broad objective of this study is to examine the adoption and use of ICT in the
e-wallet programme, while the specific objectives were to:
1. Assess
the level of awareness on the adoption of e-wallet programme.
2. Determine
the level of adoption of e-wallet programme by farmers in the study area
3. Analyze
the perception of farmers about e-wallet programme
4. Analyze
factors influencing adoption of ICT by farmers.
5. Ascertain
the impact of ewallet programme on production capacity of farmers in abia
state.
1.4 Research
questions
1. What influence does the ICT have on the farmers and
its impact?
2. Will the farmers adopt the use of ICT and the
e-wallet programme.
3. Will the programme benefit the farmers in the rural
area?
4. What are farmer’s perceptions towards the e-wallet
programme
5. Does the programme have any impact on production
capacity of farmers
1.5 Research
hypothesis
Given the nature of this research work, there is need to
formulate a reasonable hypothesis:
Ho1: Farmers in the study are not aware of
e-wallet progrmme
Ho2: The level of adoption of e-wallet
programme is low in the area study area
Ho3: Farmers perception about e-wallet
programme is low in the study area
Ho4: There is no significant factor that influence
the adoption of ICT by farmers in the study area
Ho5: E-wallet does not have any significant
impact on production capacity of farmers
1.6 Significance
of the study
Some farmers in the rural area are becoming aware of
the importance and impact of information communication technology and e-wallet
system. Farmers in the rural area that operates with old farming equipment are
larger than the farmer in the urban area, thus any information provided by this
research will help the federal ministry of agriculture and farmers on this ICT
and e-wallet system. It will also guide and direct the FMARD on how to grow and
develop a good relationship with the farmers in rural areas. This will no doubt
contribute economically and socially to the agriculture sector in Nigeria.
A comprehensive assessment of ICT and e-wallet
influence on farmer’s behavior and perception will provide a guide to the FMRAD
in implementing their farming strategies and programmes.
1.7 Scope of the
study
This study focused on the use of ict in the e-wallet
programme which is aimed at enhancing the farmers to be able to work
effectively and efficiently. The aim of the FMARD was to remove constraints by
educating, informing and communicating with the farmers on the use of
mechanized farming equipment and how the ICT can help them in their farming business.
This study is carried out in the rural area where most
farmers are unaware of the ICT and the e-wallet programme;
1.8 Limitation of
the study
Research of this nature especially in a developing country
like Nigeria always encounters some difficulties. The limitations to carry my
research in this project were time limit I had to contend with the limited time
combined with other school activities. Finance was also another problem because
insufficient fund will not allow a research to be carried out effectively.
1.9 Definition of
terms
Behavioral model: it refers to the action, reaction or
functioning of a system, under normal or specified circumstances.
ICT: information and communication technology is an
umbrella-term that includes any communication device or application
encompassing radio, television, cellular and software, satellite systems and so
on, as well as the various services and application associated with them.
E-WALLET: it is defined as an efficient and
transparent electronic device system that makes use of vouchers for the purchase
and distribution of agriculture inputs.
ADOPTION: it refers to the choosing and making that to
be one’s own which originally was not so, acceptance as the adoption of
opinions.
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