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Impact assessment of the financial inclusion strategy in Nigeria: Lessons from BRICS and other countries


  • Wale-Awe, Olawale Isaac

    (Executive Director at Strides Educational Foundation)

  • Kehinde Miracle, Alabi

    (Department of Finance, Ekiti State University, Nigeria)

  • Najeem Adekunle, Omoloye

    (Department of Finance, Ekiti State University, Nigeria)


The quest for economic development through an all-inclusive financial system has evolved to be the recent focus in financial literature and practice especially in developing countries where many are unbanked. This study assessed the financial inclusion strategy in Nigeria and its contribution to economic development between 1986 and 2018. The study regressed loans from rural bank branches, deposits to rural bank branches, number of bank branches and interest rates against per capita income using the ARDL and the Pairwise Causality Techniques. It was revealed that financial inclusion has a significant positive effect on economic development in Nigeria. Meanwhile, a unidirectional causality was found to run from economic development to financial inclusion majorly through the loans from the channel of rural bank branches. A comparative analysis revealed that Nigeria still trails behind the BRICS and some other African countries in the quest to achieve an all-inclusive economic development. It was recommended that for financial inclusion to birth real development, interest rate on loans should be reduced to single digits while deposits emanating from rural areas should be granted as loan credits to people in the same environment and not expatriated for developmental purposes in the urban areas.

Suggested Citation

  • Wale-Awe, Olawale Isaac & Kehinde Miracle, Alabi & Najeem Adekunle, Omoloye, 2020. "Impact assessment of the financial inclusion strategy in Nigeria: Lessons from BRICS and other countries," BizEcons Quarterly, Strides Educational Foundation, vol. 13, pages 3-22.
  • Handle: RePEc:ris:buecqu:0029

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    Cited by:

    1. Wale-Awe, Olawale & Evans, Olaniyi, 2023. "Financial inclusion through digital channels and the growth-inequality-poverty triangle: Evidence from Africa," MPRA Paper 119455, University Library of Munich, Germany.

    More about this item


    Economic development; Financial Inclusion; Rural Loans; Rural Deposits Fintech;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries


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