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FINANCIAL INCLUSION AS A CATALYST FOR ECONOMIC GROWTH IN NIGERIA

Miriam Chizoba Adegbite
Published 05 June 2025
Vol. 13, No. 1 (2025)
pp. 50-67
CC BY 4.0
  1. 1
    Miriam Chizoba Adegbite
    Department of Economics, Federal University of Lafia, Nassarawa State, Nigeria
    NG

This study examines the impact of financial inclusion on economic growth in Nigeria from 1992 to 2022. The study adopted analytical research design while finance-led growth theory was adopted as the theoretical framework. The data used were obtained from CBN statistical bulletins for data on bank credits or loans and bank branches and World Bank and World Development Indicators, 2022 for data on economic growth rate. The study conducted correlation test, unit root test, ARDL bound test for co-integration to analyze the data. The ARDL results revealed that a unit increase in financial inclusion reduced economic growth by 5.14 units. It therefore means that financial inclusion increase access to financial credits that promotes economic growth. However, if the borrowed funds are channeled into consumption or unproductive sectors rather than investment in growth-enhancing activities, it can negatively affect economic growth. The study therefore concluded that financial inclusion has a positive impact in promoting economic growth in Nigeria for the period under review. The study therefore recommended that government and policymakers should reassess the current financial inclusion strategies to prioritize productivityenhancing sectors such as agriculture, manufacturing and technology. It further recommended the encouragement of financial literacy programs that enlighten people on the importance of increased access to financial products and services.

JournalSustainability Journal
ISSN2998-808X
Volume / IssueVol. 13, No. 1 (2025)
Pages50-67
Published05 June 2025
DOI10.5281/zenodo.15602091
Access Open Access
LicenseCC BY 4.0 — reuse with attribution
PublisherKeith Publications
Adegbite, M. (2025). FINANCIAL INCLUSION AS A CATALYST FOR ECONOMIC GROWTH IN NIGERIA. Sustainability Journal, Vol. 13 No. 1, pp. 50-67. DOI: https://doi.org/10.5281/zenodo.15602091

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