DETERMINANTS OF FINANCIAL INCLUSION (FI) IN NIGERIAN ECONOMY

Authors

  • Victor Chukwunweike EHIEDU Banking and Finance Department, Faculty of Management Sciences, Delta State University, Abraka, Nigeria.
  • Anastasia Chi-Chi ONUORAH Banking and Finance Department, Faculty of Management Sciences, Delta State University, Abraka, Nigeria.
  • Chinyere Nkeiruka CHIGBO Banking and Finance Department, Faculty of Management Sciences, Delta State University, Abraka, Nigeria.

DOI:

https://doi.org/10.51594/farj.v4i5.406

Abstract

In this study, which covered the 16-year period from 2006 to 2021, the factors of financial inclusion (FI) in the Nigerian economy were empirically explored. As suggested in the model, after controlling for deposit interest rate and inflation rate, GDP per capita income, domestic credit to the private sector (% of GDP), broad money supply (% of GDP), number of commercial banks network, and age dependency ratio were all suggested as the determinants of FI. Data for the study were taken from the Central Bank of Nigeria Statistical Bulletin (2021), World Bank Data (2021), and International Monetary Fund report (2020), and were estimated using the ordinary least square approach with the aid of Econometric Views version 9.0. The study found that GDPPC, PSC/GDP NBRA, ADEPR and INFR all have a positive statistically insignificant effect on FI. This stance implies that FI in Nigeria is marginal. However, the number of commercial banks network and the age dependence ratio have a negative statistically negligible impact on FI whereas the M2/GDP and DEIR have a positive statistically significant impact. Therefore, the analysis draws the conclusion that the only significant factors of FI in Nigeria are M2/GDP and DEIR. In light of this, we advise all deposit money banks to make sure their goods and services are alluring since doing so will encourage the Nigerian people to save more.

Keywords: FI, Deposit, Interest Rate, Inflation Rate and Credit to Private Sector.

Published

2022-12-04

Issue

Vol. 4 No. 5 (2022)

Section

Articles

Copyright (c) 2022 Victor Chukwunweike EHIEDU, Anastasia Chi-Chi ONUORAH, Chinyere Nkeiruka CHIGBO

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Fair East Publishing has chosen to apply for the Creative Common Attribution Noncommercial 4.0 Licence (CC BY) license on our published work. Authors who wish to publish their manuscript in our journal agree on the following terms:
1. Authors retain the copyright and grant us (Fair East Publishing and its subsidiary journals) the right for first publication with the work licensed under a Creative Commons Attribution (CC BY) License which permits others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal. Under this license, author retains the ownership of the copyright of their content, but anyone is allowed to download, reuse, reprint, modify, distribute, and/or copy the contents as long as the original authors and source are cited. No permission is required from the publishers or authors.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (for example, publishing it as a book or submitting it to an institutional repository), with an acknowledgment of its initial publication in Fair East Publishing owned journals.
3. We encourage our authors/contributors to post their work online (such as posting it on their website or some institutional repositories) prior to and during the submission process since it produces scholarly exchange and greater and earlier citation of published work.