FINANCIAL INCLUSION AND ECONOMIC GROWTH IN NIGERIA

The study examined the effect of financial inclusion on economic growth in Nigeria spanning periods from 1994 to 2023 based on the accessibility of data. Four hypotheses were raised and evaluated using the fully modified ordinary least squares estimator. Based on the analysis conducted, the following findings were made that: the number of bank branches per 100,000 adults has a statistically significant but negative impact on economic growth in Nigeria; the number of deposit accounts with commercial banks per 1,000 adults does not significantly impact economic growth in Nigeria; the proportion of outstanding loans from commercial banks as a percentage of GDP does not have a significant effect on economic growth in Nigeria; and the total volume of mobile money transactions as a percentage of GDP has a statistically significant and positive impact on economic growth in Nigeria. Thus, it was recommended that: policymakers and financial institutions should prioritize investments in mobile and digital banking infrastructure over expanding physical bank branches; financial institutions should implement strategies to encourage the active use of deposit accounts; financial institutions should focus on enhancing access to productive credit for individuals and small businesses; and policymakers and financial institutions should further develop mobile money ecosystems.