2026 Vol-6 Issue-2 | UTILIZATION OF DIGITAL PAYMENT SERVICES AMONG AGRICULTURAL PRODUCERS IN AKWA IBOM STATE, NIGERIA

Digital payment services (DPS) are increasingly recognized as tools for advancing financial inclusion, yet adoption among rural agricultural producers remains limited due to socio-economic and infrastructural constraints. This study examined DPS utilization among agricultural producers in Akwa Ibom State, Nigeria, focusing on usage patterns and challenges. A multi-stage sampling procedure selected 180 respondents, with data analyzed using descriptive statistics and Kruskal–Wallis tests. Findings revealed that 48.9% of respondents had 11–15 years of farming experience, with a mean annual income of ₦67,458. Utilization varied significantly across locations (χ² (2, N=180) = 15.498, p = 0.000). Urban agricultural producers exhibited higher engagement, particularly through ownership of business accounts (0.867), possession of digital payment cards (0.833), and receipt of customer transactions. Rural producers relied more on electronic payment cards (0.733) and bank accounts for e-transactions (0.467), while riverine producers primarily utilized business accounts and bank accounts (0.467 each). Major barriers included high transaction charges, low educational attainment, poor network availability, and reliance on external assistance for e-transactions. The study concludes that enhancing DPS adoption requires coordinated interventions by the Central Bank of Nigeria, financial institutions, telecom operators, and extension services. Priority actions include expanding internet and electricity infrastructure, strengthening financial literacy programs, and promoting affordable access to electronic payment systems through subsidies or financing mechanisms.