K. C. Onwukanjo, C. N. Anumudu, C. U. Ugwuanyi


This paper examined the impact of financial inclusion on the Nigerian economic growth for the period 1980-2019. The paper considered the three objectives during the review period. The main objective of the study is to examine the significant impact of financial inclusion on the Nigerian economic growth. Secondary time series data were used to carry out the empirical analysis. The study specified the model that was used to examine the objectives with the aid of vector error correction model (VECM) approach, Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests, Co-integration Test and Granger Causality. Based on the above econometric and statistics techniques conducted, it was observed that financial inclusion has significant impact on the Nigerian economic growth during the period of study 1980-2019. The results raveled a bidirectional nature of causality relationship between the variables in the model during the period of the study 1980-2020. These empirical results do support that One percent decrease in the interest rate (IR), inflation rate (FR) and exchange rate (EXCR) at lag (-2) will leads to [31% (IR)-2), 53%(FR)-2), and 8%(EXCR)-2)] increases on the aggregate saving (ASE) quall to investment in Nigeria. One percent increase in the financial inclusion proxy by; deposit from the rural areas (DRA), loan to rural areas (LRA), account owners of any type (AA) and electronic money banking/payment system (EMB) at lag (-2) will leads to [38%(DRA)-2), 92%(LRA)-2), 59%(AA)-2) and 03%(EMB)-2)] increases on Per capita income (PCI) respectively in Nigeria. Based on these findings, the researcher recommends that; Nigerian authorities should increase the number of formal account ownership by removing obstacles such as income and age bracket bias, distance in location and education discrimination in the delivery and use of financial services.


Impact, Financial Inclusion, Economic growth, Nigeria.

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