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Financial Inclusion in Nigeria and the USA: A Comparative Perspective

Author

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  • Sunday O. Igbinosa

    (Department of Finance, University of Benin, Benin City, Nigeria.)

Abstract

The short paper adopts a qualitative approach in executing a concise examination of financial inclusion in Nigeria and the USA. Adopting a comparative method the paper examined the subject along three main strands focusing on similarities and differences in the strategies employed, challenges encountered, and outcomes attained. Using context-specific approaches, based on the impact of technology, and the importance of inclusive regulatory environment the paper notes that financial inclusion has improved significantly in the last few years in both countries due to policy reforms, financial literacy, various financial initiatives and regulatory intervention. The paper posits that the level of financial inclusion is high in both countries at 96% in the US compared to 74% in Nigeria and concludes that while Nigeria’s trajectory is characterized by rapid advancement via digital innovation and policy reforms; nonetheless, considerable disparities persist, especially for women and rural communities. Despite the U.S sophisticated financial system, it continues to contend with areas of exclusion stemming from socio-economic and geographic inequalities. The paper advocates the need for global learning: cross-country learning and adaptation of best practices to inform national strategies and policy. Specifically, it recommends that relevant strategies appropriate for each nation’s circumstances should be put in place to reduce gender disparity in financial inclusion to the barest minimum in Nigeria and to address disparities based on ethnicity and other factors in the US.

Suggested Citation

  • Sunday O. Igbinosa, 2025. "Financial Inclusion in Nigeria and the USA: A Comparative Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 1851-1857, July.
  • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:1851-1857
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    References listed on IDEAS

    as
    1. Xiaoling Song & Jiaqi Li & Xueke Wu, 2024. "Financial inclusion, education, and employment: empirical evidence from 101 countries," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    2. Aparajita Agarwal & Valentina A. Assenova, 2024. "Mobile Money as a Stepping Stone to Financial Inclusion: How Digital Multisided Platforms Fill Institutional Voids," Organization Science, INFORMS, vol. 35(3), pages 769-787, May.
    3. Erik Feyen & Jon Frost & Leonardo Gambacorta & Harish Natarajan & Matthew Saal, 2021. "Fintech and the digital transformation of financial services: implications for market structure and public policy," BIS Papers, Bank for International Settlements, number 117.
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    Cited by:

    1. Sirajo Sani Sokoto & Prof. Bayero Ahmed Sabir Muhammad & Prof. Yahaya Yusuf & Prof. Muhammad Sani Umar, 2026. "Financial Inclusion in Nigeria: Regional Disparities and Determinants (2012-2020)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(5), pages 11969-11980, May.

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