THE IMPACT OF FINANCIAL INCLUSION ON ECONOMIC GROWTH IN NIGERIA
Abstract
ABSTRACT
Financial Inclusion as a strategy has become a policy issue around the world including Nigeria, and it has been perceived as a transmission mechanism for poverty eradication and a means of pursuing inclusive Economic Growth. This study examined the Impact of Financial Inclusion on Economic Growth in Nigeria using an econometric analysis. The finance-growth theory was adopted as the theoretical framework. The data extracted from secondary sources for econometric analysis covered the period between 2021 and 2023 while the Error Correction Model was used to test the hypotheses. Based on empirical analysis, the study concluded that Financial Inclusion has a positive and significant impact on Economic Growth in Nigeria through financial deepening variables which are influenced by financial inclusion variables such as broad money, credit to private sector, loan deposit of the rural area and liquidity ratio of commercial banks. It is therefore recommended for Policy makers and regulators to ensure that adequate efforts are put in place to guarantee adherence by the banks to the various rules, regulations and policies guiding their activities. The Regulators need to make sure that all financial inclusion variables are geared towards growing the level of economic activities in the country which will in turn lead to inclusive economic growth.
Keywords – Economic Growth, Financial Inclusion, Financial Services,
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