Financial Inclusion in Rural and Urban Nigeria: A Quantitative and Qualitative Approach

The study provided insights into current realities of financial inclusion among financially vulnerable (financially illiterate and semi-literate) customers in an emerging economy. The two-phased study adopted both quantitative and qualitative methods in which cross-sectional and phenomenological approaches were used for data collection, with specific emphasis on rural-urban differentials. Data for the first phase was obtained from an urban (n=211) and rural (n=242) sample selected via a combination of purposive and convenient sampling. A structured questionnaire was utilized in eliciting relevant information from the study participants. Data for the second phase was obtained from bank managers who are key informants with professional knowledge about trends of financial inclusion in Nigeria. Quantitative outcomes showed that residential status had a significant main effect on access to marketing financial inclusion services, such that rural residents had limited access to financial inclusion services; while perceived cost of financial inclusion had a significant main effect on usage of financial inclusion services, such that perceptions of high cost of perceived inclusion resulted in less usage of financial inclusion services. Qualitative outcomes highlighted major efforts used to drive financial inclusion including financial education and financial literacy in rural Nigeria, while highlighting the prospects, problems and possible interventions.