Financial Inclusion And Poverty Reduction In Nigeria
No Thumbnail Available
Date
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Economics and Development Studies
Abstract
Description
Financial inclusion has gained widespread acceptance among governments, academics, and watchers of the global economy as a crucial
instrument for eradicating poverty, creating jobs, building wealth, and enhancing human welfare and living standards, all of which contribute
to economic growth. This study's objective was to ascertain how financial inclusion impacted Nigeria's efforts to combat poverty. It looked
at the empirical connection between the struggle against poverty and financial inclusion. The study uses yearly time series data from the
World Development Indicators (2021) covering the years 1980 to 2020 to examine how financial inclusion affects poverty in Nigeria. The
study's independent and control variables were Per Capita Income (PCI), Financial Deepening Indicator (FDI), Social Investment Loan (SIL),
Loan-Deposit Ratio (LDR), and Depositors with Commercial Banks (DCB), while the dependent variable was the Poverty Index (PI). The
study employed the Auto-Regressive Distributed Lag (ARDL) model to estimate how financial inclusion affects Nigerian poverty levels.
According to this research, Nigeria's attempts to combat poverty are positively and significantly impacted by financial inclusion. According
to the study's findings, reducing poverty in Nigeria is positively impacted by financial inclusion. These outcomes illustrated the potential
contribution of financial inclusion initiatives to raising the standard of living among Nigerians. The research suggested that the Central Bank
of Nigeria develop efficient monetary policies that can have an impact on financial inclusion and poverty reduction.
Keywords
H Social Sciences (General), HB Economic Theory, HG Finance