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Financial Inclusion and Economic Growth in Nigeria

Author

Listed:
  • Kingsley Ucheka Omoile

    (Accounting/Finance and Taxation, Caleb University, Imota, Lagos, Nigeria)

  • Oluwagbenga David Adekunle

    (Accounting/Finance and Taxation, Caleb University, Imota, Lagos, Nigeria)

Abstract

This study used data collected between 1989 and 2022 to draw conclusions on how financial inclusion affected GDP growth in Nigeria. This meant that GDP growth rate was used to measure economic expansion, and that money supply, ATM numbers, bank branches in rural areas, commercial bank loans to borrowers in rural areas, and the labor force were used to measure financial inclusion. The study included labor force participation and gross fixed capital formation as control variables. A causality approach and an ARDL model were used in the analysis. As a result, it was proven that financial inclusion little affects GDP growth, whereas the labor force and money supply drive economic expansion. Consequently, it is advised that the government should support the Central Bank of Nigeria in creating a conducive climate for interest rates, so encouraging prospective investors in rural regions to seek loans. The Central Bank of Nigeria should mandate commercial banks to provide increased credit facilities to rural investors without requiring collateral, thereby encouraging investment in viable projects and positively impacting the economy, as money supply is a catalyst for economic growth.

Suggested Citation

  • Kingsley Ucheka Omoile & Oluwagbenga David Adekunle, 2025. "Financial Inclusion and Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 4418-4426, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-8:p:4418-4426
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    References listed on IDEAS

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