Effect of Literacy in Traditional Financial Practices on the Adoption of Asset Tokenization in Rivers State, Nigeria.
Publication Date: 27/01/2026
Author(s): Jemila Alfa Mohammed (Ph.D.), Joseph Femi Adebisi (Prof.), Anderson Emmanuel Oriakpono (Ph.D.).
Volume/Issue: Volume 9, Issue 1 (2026)
Page No: 20-33
Journal: African Journal of Accounting and Financial Research (AJAFR)
Abstract:
This study investigates the effect of literacy in traditional financial practices on the adoption of asset tokenization in Rivers State, Nigeria. Adopting a quantitative cross-sectional survey design, primary data were collected from a stratified proportional sample of 255 respondents lecturers and students from Accounting, Banking and Finance, Management, and Economics departments across three tertiary institutions: University of Port Harcourt, Rivers State University, and Ignatius Ajuru University of Education. Using SPSS v25, descriptive statistics, normality tests (Shapiro–Wilk, skewness, kurtosis), Pearson correlation, and multiple linear regression were applied to examine how literacy in traditional financial practices (LTFP), involvement in traditional financial practices (ITFP), and financial regulatory clarity and support (FRCS) influence both the level of adoption (LAAT) and intention to adopt asset tokenization (IAAT). The results indicate that LTFP (β = .248, p < .001), ITFP (β = .202, p < .01), and FRCS (β = .226, p < .001) significantly and positively predict LAAT, while LTFP (β = .239, p < .001), ITFP (β = .210, p < .01), and FRCS (β = .234, p < .001) also significantly predict IAAT. The findings confirm that understanding and engagement in traditional finance, coupled with regulatory clarity, are vital enablers of tokenization adoption. The study concludes that enhancing financial literacy rooted in traditional systems, improving regulatory transparency, and aligning community-based finance with digital innovations will accelerate Nigeria’s transition toward asset tokenization. It recommends joint interventions by the Central Bank of Nigeria, Securities and Exchange Commission, National Orientation Agency, and tertiary institutions to expand financial education, regulatory guidance, and awareness of tokenized asset frameworks.
Keywords:
Traditional Financial Literacy, Asset Tokenization, Financial Regulation, Adoption Intention, Behavioral Finance, Nigeria.
