The Impact of Fintech- Driven Financial Inclusion on Economic Growth in Nigeria

Yakubu Hassan Madugbe, Sylvester Monday Onyeoma and Prof. Mercy Ada Anyiwe
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Yakubu Hassan Madugbe: Department of Economics and Development Studies, Igbinedion University Okada, Nigeria
Sylvester Monday Onyeoma: Department of Economics and Development Studies, Igbinedion University Okada, Nigeria
Prof. Mercy Ada Anyiwe: Department of Economics & Statistics, University of Benian, Benin City

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 15, 924-933

Abstract: This study examined how financial inclusion driven by the rise of fintech impacts economic growth in Nigeria, using quarterly time series data from Q12011 to Q42023. It adopts the Autoregressive Distributed Lag (ARDL) model, that captures both the short-run and long-run effects of financial inclusion on real GDP per capita, while controlling for key macroeconomic variables and structural shocks such as the 2016 recession and the COVID-19 pandemic. The long run results indicate that financial inclusion and credit to the private sector play significant roles in driving sustained economic growth. Interestingly, access to banking services exerts significant influence that is more pronounced in the short run. The error correction term in the model is highly significant and points to a fairly responsive system to equilibrium after experiencing temporary shocks. inflation continues to be a drag on growth, exerting a persistent negative pressure. While the diagnostic tests affirm the model’s internal consistency, there’s always room for more granular exploration. On the whole, the evidence suggests that deeper banking penetration holds substantial potential for inclusive economic advancement in Nigeria. Based on this, the paper recommends that policymakers not only intensify efforts to broaden banking reach especially in peri-urban and rural areas but also strengthen the credit delivery system and invest in supportive infrastructure. Addressing inflation through more disciplined monetary frameworks is also crucial. In addition to a renewed push for financial literacy, tailored to local contexts, that could make a real difference in bringing more people meaningfully into the formal financial system.

Date: 2025
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