Impact assessment of the financial inclusion strategy in Nigeria: Lessons from BRICS and other countries
Olawale Isaac Wale-Awe (),
Alabi Kehinde Miracle and
Omoloye Najeem Adekunle
Additional contact information
Olawale Isaac Wale-Awe: Executive Director at Strides Educational Foundation
Alabi Kehinde Miracle: Department of Finance, Ekiti State University, Nigeria
Omoloye Najeem Adekunle: Department of Finance, Ekiti State University, Nigeria
BizEcons Quarterly, 2020, vol. 13, 3-22
The quest for economic development through an all-inclusive financial system has evolved to be the recent focus in financial literature and practice especially in developing countries where many are unbanked. This study assessed the financial inclusion strategy in Nigeria and its contribution to economic development between 1986 and 2018. The study regressed loans from rural bank branches, deposits to rural bank branches, number of bank branches and interest rates against per capita income using the ARDL and the Pairwise Causality Techniques. It was revealed that financial inclusion has a significant positive effect on economic development in Nigeria. Meanwhile, a unidirectional causality was found to run from economic development to financial inclusion majorly through the loans from the channel of rural bank branches. A comparative analysis revealed that Nigeria still trails behind the BRICS and some other African countries in the quest to achieve an all-inclusive economic development. It was recommended that for financial inclusion to birth real development, interest rate on loans should be reduced to single digits while deposits emanating from rural areas should be granted as loan credits to people in the same environment and not expatriated for developmental purposes in the urban areas.
Keywords: Economic development; Financial Inclusion; Rural Loans; Rural Deposits Fintech (search for similar items in EconPapers)
JEL-codes: E58 G20 O40 O57 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://bizecons.hevanz.com/wp-content/uploads/2020/11/Wale-Awe-et-al.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:buecqu:0029
Access Statistics for this article
BizEcons Quarterly is currently edited by Olaniyi Evans
More articles in BizEcons Quarterly from Strides Educational Foundation
Bibliographic data for series maintained by Olaniyi Evans ().