Assessment of the contributions of Agro-based cooperatives on financial empowerment of rural dwellers in Nasarawa state

Abstract

The widespread belief that rural dwellers are marginalized has brought global attention to their socio-economic status, particularly in developing countries like Nigeria and states such as Nasarawa. This study investigates the contributions of agro-based cooperatives to the financial empowerment of rural dwellers in Nasarawa State. The target population consisted of members from nine agro-based cooperatives across three senatorial zones, totalling 11,901 registered members. The sample size was calculated using the Taro Yamane formula, resulting in a base sample of 387, which was increased by 30% to account for potential non-responses, yielding a final sample size of 503 respondents. A multi-stage sampling technique was utilized. Data were collected through a structured questionnaire in form of a 5-point Likert scale for respondents' agreement on various statements. The study data was analysed using descriptive statistics and simple regression analysis to test the study's hypotheses. It was found that agro based cooperatives significantly enhance access to credit facilities, contributing to the economic empowerment, and cooperative savings play a significant role in boosting the income levels of rural dwellers in Nasarawa State. The study recommended that Governments and relevant authorities should develop policies that promote the establishment and sustainability of agro-based cooperatives, including financial incentives and training programs to enhance their operational capacities. Financial institutions should create tailored financial products for agro-based cooperatives to facilitate easier access to credit and improve their financial resilience.