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Financial inclusion in Nigeria: determinants, challenges and achievements

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  • Ozili, Peterson K

Abstract

This article analyse several indicators of financial inclusion in Nigeria. The findings reveal that people with at least a secondary education and unemployed people had higher levels of debit card ownership, higher levels of account ownership of any type, and higher levels of account ownership in a financial institution. Also, people with at least a secondary education had higher levels of borrowings from a bank or another type of financial institution, and had lower levels of savings at a financial institution. On the other hand, savings using a savings club or persons outside the family decreased among females, poor people and among people with a primary education or less. Furthermore, there were fewer credit card ownership by unemployed people while credit card ownership increased among employed people, the richest people and among people with at least a secondary education. Also, borrowings from family or friends decreased for most categories in 2014 and 2017. Finally, the econometric estimation shows that borrowings and savings outside financial institutions (using family, friends or saving clubs) significantly contributed to economic growth than borrowing and savings through financial institutions. The findings have implications.

Suggested Citation

  • Ozili, Peterson K, 2020. "Financial inclusion in Nigeria: determinants, challenges and achievements," MPRA Paper 99173, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99173
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    File URL: https://mpra.ub.uni-muenchen.de/99173/1/MPRA_paper_99173.pdf
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    References listed on IDEAS

    as
    1. Ogechi Adeola & Olaniyi Evans, 2017. "Financial inclusion, financial development, and economic diversification in Nigeria," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(3), pages 1-15, July-Sept.
    2. Miriam Bruhn & Inessa Love, 2014. "The Real Impact of Improved Access to Finance: Evidence from Mexico," Journal of Finance, American Finance Association, vol. 69(3), pages 1347-1376, June.
    3. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    4. Abiola A. Babajide & Folasade B. Adegboye & Alexander E. Omankhanlen, 2015. "Financial Inclusion and Economic Growth in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 629-637.
    5. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
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    Cited by:

    1. Ozili, Peterson Kitakogelu, 2022. "Financial inclusion in Nigeria: an overview," MPRA Paper 113572, University Library of Munich, Germany.

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    More about this item

    Keywords

    financial inclusion; access to finance; financial exclusion; development; economic growth; poverty reduction; Nigeria; digital finance; cashless policy; financial education; financial literacy; Africa; robo advisor; regulatory sandbox;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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