Citation:

Odumusor, Charles Joseph, Sackey Jacob Acquah, Abiji, Emmanuel. "Financial Inclusion and its Effect on Economic Growth in Nigeria" International Research Journal of Economics and Management Studies, Vol. 3, No. 2, pp. 231-244, 2024.

Abstract:

The general objective of this study was to ascertain the effect of financial inclusion on Nigeria's GDP growth. Determining the effect of loans on small businesses and the extent to which deposits and loans from commercial banks' rural branches influenced Nigeria's economic growth were two specific objectives. In this investigation, an ex post facto research design was implemented. This research investigated commercial bank loans extended to small-scale enterprises, deposits, and loans from commercial bank branches located in rural areas. Additionally, it examined the GDP of Nigeria from 2000 to 2020. The study employed a judgmental sampling technique. The data were analyzed in the research using Ordinary Least Square Regression, facilitated by Statistical Package E-View version 10.0. The study's findings indicate that the provision of small business financing by commercial banks has a substantial influence on the growth of the Nigerian GDP. The results of the study indicated that loans and deposits from rural subsidiaries of commercial banks have a substantial effect on Nigeria's GDP growth. It was suggested that banks lend more assistance to their rural branches in the form of credit expansion and fund mobilization, given that rural residents have the most pressing needs.

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Keywords:

Financial Inclusion, Sustainable Banking Services, Economic Growth.