DIGITAL BANKING AND FINANCIAL INCLUSION IN NIGERIA

This study investigates the impact ofdigital banking channels specifically Point ofSale (POS),Mobile Banking, Automated Teller Machines (ATM), andInternet Banking onfinancial inclusion in Nigeria over the period 2009 to 2024. Employing the Robust Least Squares (RLS) estimation technique, the analysis addresses issues of serial correlation and model misspecification to provide reliable estimates of the relationship between digital banking tools and the level of financial inclusion. The findings reveal that POS transactions significantly promote financial inclusion, while mobile banking exhibits a positive but statistically weak influence. In contrast,ATM usage has a significant negative effect, and internet banking shows no meaningful contribution to inclusion outcomes. These results suggest that while digital banking is a potent enabler offinancial inclusion, its impact is not uniform across platforms. It is therefore recommended that policymakers prioritize investment in scalable, low-cost digital banking channels like POS and mobile banking, while simultaneously addressing infrastructural, trust,and literacy barriers that hinder the effectiveness ofinternet and ATM-basedfinancial services in reaching underservedpopulations