INCLUSIVE GROWTH FOR SUSTAINABLE DEVELOPMENT: THE ROLE OF LOCAL ‘ADASHI’ AS FINANCING AGENTS IN AGRICULTURE IN NASARAWA STATE
Angbas Jonathan Avreson
Department of Economics
Nasarawa State University, Keffi
Email: avrenab@yahoo.com
ABSTRACT
This paper takes a look at the role of ‘adashi’ a local financing arrangement for small farm holders to access necessary finance in promoting agricultural productivity in the process of attaining sustainable growth and development. It adopts descriptive statistics and a utility maximization function to evaluate the extent of inclusive growth through the impact of ‘adashi’ in promoting financial inclusion for growth. In spite of several government pronounced programs on agricultural financing, access to credit through stringent regulations and bureaucracy are impediments to most rural farmers who lack collateral. This is against the background of the fact that lack of access to basic inputs and needed finance is hampering effective involvement of farmers in expanding their productivity. Results from the study reveals that there is low financial inclusion in most rural areas due to the total or near absence of formal financial institutions thereby playing an insignificant role in promoting agricultural productivity. On the other hand, ‘adashi’ is reported to have significant impact on farmers’ productivity where they exist due to its liberal conditions and ease of accessibility, it therefore has the potential to alleviate poverty and promote inclusive and sustainable development. The study believes that in the absence of bank financing, these local ‘adashi’ which are mostly community based can be promoted and supported to expand their scope in providing finance for small farmers. This will create greater opportunities for increased employment and ensure inclusive growth towards sustainable development.
Key words: Adashi, Inclusive growth, financial inclusion, utility maximization, sustainable development
