Financial Inclusion and Economic Growth Nexus, Evidence from Nigeria

Abstract

This study focuses on the impact of financial inclusion on economic growth in Nigeria.
Primary data was gathered with the aid of questionnaires which consists of a sample size
of 180. Two hundred and twenty (220) questionnaires were distributed among
individuals, owners of small and medium scale enterprises within Nigeria, but one
hundred and eighty were retrieved representing a response rate of 81.81%. Simple linear
Regression analysis was used in testing the three hypotheses: local credit influence on
economic growth, effect of financial inclusion on economic growth and the impact of
commercial bank deposits on economic growth, our findings showed that there is
significant relationship between local credit and economic growth in Nigeria, It was also
found in this study that there is significant relationship between financial inclusion and
economic growth and that there is significant relationship between commercial bank
deposits and economic growth. Environmental factors have an impact on planning and
forecasting in business management and there was a positive relationship between
planning and forecasting. This was reviewed through the response obtained. I, therefore
recommend that Central Bank of Nigeria should increase its vigor for pursuing financial
inclusion as it not only helps with economic growth as espoused in literature, but also
effectuates monetary policy in Nigeria.