Impact of Financial Inclusion on Green Investments in Rural Areas of Nigeria

Ojoma Victoria Ahunanya
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Ojoma Victoria Ahunanya: Department of Economics, Federal University Lokoja

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 3, 780-792

Abstract: This study examines the impact of financial inclusion on green investments in rural areas of Nigeria, with the aim of assessing how access to financial services can promote environmentally sustainable practices and economic resilience. Specifically, it investigates the extent to which financial inclusion influences green investment adoption, identifies challenges faced by rural populations in accessing financial services for green projects and explores strategies to enhance financial inclusion effectiveness in supporting sustainability initiatives. It provides a detailed empirical analysis using data from 506 individuals randomly selected from rural areas in Nigeria, employing descriptive statistics, correlation, and regression analyses to evaluate the relationship between financial inclusion, income, education, age, and green investments. The findings reveal weak and statistically insignificant correlations between financial inclusion and green investments, indicating that financial inclusion alone is insufficient to drive substantial green initiatives in rural areas. Key barriers include a lack of tailored financial products, limited financial literacy, and structural challenges within rural financial systems. The study concludes that while financial inclusion is essential for economic participation, its potential to foster green investments requires complementary measures such as policy support, financial innovation, and enhanced awareness of green opportunities. It recommends the development of tailored financial products, promotion of financial literacy, and integration of environmental objectives into financial strategies to bridge the gap between financial inclusion and sustainable development in rural communities.

Date: 2025
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