Financial Inclusion and Nigerian Economy (1990-2015)
This paper examined the effects of financial inclusion on the Nigerian economy (1990-2015). Financial inclusion is the provision of a broad range of high quality financial products such as savings, credit, insurance, payments and pension, which are affordable for the entire adult population especially the low income segments or disadvantaged economy. The objectives of the study were to determine the relationship between DMBs financial intermediation activities, financial deepening, and real GDP and to determine the relationship between financial inclusion and poverty eradication in Nigeria. The study employed the use of Ordinary least squares (OLS) regression technique and adopted the analytical method of data analysis. Using the e-view
statistical software version 8.0 for test of hypotheses. The major findings were that DMBs’ financial intermediation activities, financial deepening, financial accessibility, institutional infrastructures all have positive significant effect on economy growth (Real GDP) while there was no relationship between financial inclusion and poverty eradication in Nigeria. Among several recommendations were the following: government creating and enabling environment for effective financial inclusion; the structures and platforms such as bank branches, ATM and POS terminals of conventional banks should be adequately equipped in order to enhance financial inclusion by bringing those captured by the informal sector, into the formal sector and; DMBs’ role in creating
affordable services such as credit should attract further attention from CBN to reduce interest rate to SMEs and rural populace. The three-tiered KYC regime by the CBN is a step in the right direction.