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Financial Inclusion and Household Consumption: Case of Nigeria

Author

Listed:
  • Seck, Ousmane

    (The Islamic Research and Teaching Institute (IRTI))

  • Naiya, Ismaeel Ibrahim

    (Islamic Development Bank, Jeddah, Saudi Arabia)

  • Muhammad, Aliyu Dahiru

    (International Institute of Islamic Banking and Finance, Bayero University Kano)

Abstract

The recent awareness of the important role of finance in economic growth and development has stimulated interests of policy-makers and other stakeholders in expanding households’ financial access for inclusion economic growth and economic development. This paper is a contribution to the scant literature using micro-data to investigate the effects of financial inclusion on economic outcomes of households. Based on the data of Living Standards and Demographic survey of 2010 and 2012, this paper focuses on households’ welfare through consumption in Nigeria. The study employs the panel data approach to analyze the effects of financial inclusion on household consumption, controlling for the endogeneity of the financial inclusion itself, and concludes that access to finance has a positive impact on households’ consumption. This has implication for policy makers and practitioners to use access to finance as a tool for poverty reduction in the Nigeria.

Suggested Citation

  • Seck, Ousmane & Naiya, Ismaeel Ibrahim & Muhammad, Aliyu Dahiru, 2017. "Financial Inclusion and Household Consumption: Case of Nigeria," Working Papers 2017-3, The Islamic Research and Teaching Institute (IRTI), revised 20 Aug 2017.
    • Handle: RePEc:ris:irtiwp:2017_003
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial Inclusion; Nigeria; Household Consumption;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D10 - Microeconomics - - Household Behavior - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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