THE EFFECT OF FINTECH AND FINANCIAL INCLUSION ON ECONOMIC GROWTH IN NIGERIA

This study examines the relationship between financial technology, financial inclusion, and economic growth in Nigeria using annual time-series data covering the period from 2010 to 2024. The study is motivated by the rapid expansion of digital financial services and the growing policy interest in leveraging financial inclusion as a tool for sustainable economic development. Financial technology is proxied by transaction-based indicators including automated teller machines, mobile banking, internet banking, and point-of-sale services, while economic growth is measured using real gross domestic product. The study adopts a descriptive research design and employs the Autoregressive Distributed Lag (ARDL) modeling technique to examine both the short-run and long-run relationships among the variables. Unit root and bounds tests are conducted to establish the order of integration and the existence of long-run relationships. The empirical findings reveal the presence of a long-run relationship between financial technology, financial inclusion, and economic growth in Nigeria. The results indicate that increased adoption and usage of digital financial services have a positive and significant impact on economic growth, particularly in the long run. The short-run dynamics show mixed effects across the financial technology indicators, reflecting adjustment lags and short-term economic fluctuations. However, the error correction mechanism confirms that deviations from long-run equilibrium are corrected over time. The findings suggest that financial technology enhances financial inclusion by improving access to financial services, reducing transaction costs, and promoting efficient financial intermediation. The study concludes that financial technology and financial inclusion play a crucial role in supporting economic growth in Nigeria. It recommends policies that promote digital financial infrastructure, strengthen regulatory frameworks, and improve financial literacy in order to achieve inclusive and sustainable economic growth.