Digital technology knowledge and farmer's e-commerce valuation in Nigeria

The growth of digital marketing platforms is reshaping the food systems and offers a potential solution to farmers’ output market access problem. However, the digital transformation also leads to a growing digital divide, driven by disparities in digital literacy, which may hinder rural farmers from exploiting opportunities in the digital market. This paper investigates the relationship between e-commerce valuation and digital technology knowledge in rural Nigeria. We used contingent valuation questions to measure farmers’ willingness to pay for digital platform services in commercializing their agricultural products. We performed a basic digital technology knowledge test to assess farmers’ proficiency in using digital tools, focusing on practical digital skills. Using the treatment effects framework associated with panel data, we found significant positive and heterogeneous effects of digital technology knowledge on e-commerce valuation in rural Nigeria. To fully realize the potential of rural e-commerce, urgent policy interventions are needed to enhance digital literacy and make internet access more affordable for rural farming households.