Financial Inclusion in Nigeria: Determinants, Challenges and Achievements

15 Pages Posted: 14 Apr 2020 Last revised: 26 Oct 2020

Date Written: 2020

Abstract

This article analyse several indicators of financial inclusion in Nigeria. The findings reveal that people with at least a secondary education and unemployed people had higher levels of debit card ownership, higher levels of account ownership of any type, and higher levels of account ownership in a financial institution. Also, people with at least a secondary education had higher levels of borrowings from a bank or another type of financial institution, and had lower levels of savings at a financial institution. On the other hand, savings using a savings club or persons outside the family decreased among females, poor people and among people with a primary education or less. Furthermore, there were fewer credit card ownership by unemployed people while credit card ownership increased among employed people, the richest people and among people with at least a secondary education. Also, borrowings from family or friends decreased for most categories in 2014 and 2017. Finally, the econometric estimation shows that borrowings and savings outside financial institutions (using family, friends or saving clubs) significantly contributed to economic growth than borrowing and savings through financial institutions. The findings have implications.

Keywords: Financial Inclusion, Access to Finance, Financial Exclusion, Development, Economic Growth, Poverty Reduction, Nigeria, Digital Finance, Cashless Policy, Financial Education, Financial Literacy, Africa, Robo Advisor, Regulatory Sandbox, Regtech.

JEL Classification: G21, O16, P34

Suggested Citation

Ozili, Peterson K, Financial Inclusion in Nigeria: Determinants, Challenges and Achievements (2020). Available at SSRN: https://ssrn.com/abstract=3557244 or http://dx.doi.org/10.2139/ssrn.3557244

Peterson K Ozili (Contact Author)

Independent ( email )

Nigeria
Nigeria
Abuja
Nigeria

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