Abstract:
From 2005 to 2019, this study looked at the factors that influence financial inclusion in Nigeria. GDP per capita income, domestic credit to the private sector (percent of GDP), broad money supply (percent of GDP), number of commercial bank networks, and age dependency ratio were all suggested as determinants of financial inclusion in the model, with deposit interest rate and inflation rate controlled for. The study's data came from the World Bank Data (2019), the International Monetary Fund report (2019), and the Central Bank of Nigeria Statistical Bulletin (2019), with the data being estimated using the ordinary least square approach using Economic Views version 9.0. The study found that gross domestic product per capita, domestic credit to the private sector (percentage of GDP), and inflation rate have statistically insignificant beneficial effects on financial inclusion. This position implies that financial inclusion in Nigeria is limited. However, broad money supply (percent of GDP) and deposit interest rate have a statistically significant positive impact on financial inclusion, whilst the number of commercial banks network and age dependence ratio have a statistically negligible negative impact. As a result, the study suggests that the only remaining drivers of financial inclusion in Nigeria are the broad money supply (percentage of GDP) and deposit interest rate. In light of this, we recommend that all deposit money banks make their products and services appealing, as this will encourage the Nigerian people to save more.
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