Financial inclusion in Nigeria: an overview

Ozili, Peterson Kitakogelu (2022): Financial inclusion in Nigeria: an overview. Published in: International Journal of Banking and Finance

Abstract

This paper analyse the level of financial inclusion in Nigeria using data from the global findex indicators. The findings reveal that Nigeria witnessed growth in several financial inclusion indicators in the early years of financial inclusion in 2014 but the benefits were not sustained in the later years especially in 2017. Nigeria’s level of financial inclusion is very low compared to the World average. In the population group analysis, it was observed that the female, poorest, male, older and uneducated population were worse-off in all indicators of financial inclusion in 2017. The implication of the observed decline in the level of financial inclusion in 2017 suggest that there are barriers to financial inclusion in the post-2014 years.

• Item Type: MPRA Paper
• Language: English
• Keywords: formal account, borrowing, sustainable development, Nigeria, financial inclusion, access to finance, financial institutions, credit cards, debit cards, account ownership, female, savings.
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G29 - Other

References

Adegbite, O. O., & Machethe, C. L. (2020). Bridging the financial inclusion gender gap in smallholder agriculture in Nigeria: An untapped potential for sustainable development. World Development, 127, 104755.

Adeola, O., & Evans, O. (2017). Financial inclusion, financial development, and economic diversification in Nigeria. The Journal of Developing Areas, 51(3), 1-15.

Adetunji, O. M., & David‐West, O. (2019). The relative impact of income and financial literacy on financial inclusion in nigeria. Journal of International Development, 31(4), 312-335.

Allen, F., Demirguc-Kunt, A., Klapper, L., & Peria, M. S. M. (2016). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Journal of Financial Intermediation, 100(27), 1-30.

Bachas, P., Gertler, P., Higgins, S., & Seira, E. (2018, May). Digital financial services go a long way: Transaction costs and financial inclusion. In AEA Papers and Proceedings (Vol. 108, pp. 444-48).

Buera, F. J., Kaboski, J. P., & Shin, Y. (2011). Finance and development: A tale of two sectors. American economic review, 101(5), 1964-2002.

David, O. O., Oluseyi, A. S., & Emmanuel, A. (2018). Empirical Analysis of the Determinants of Financial Inclusion in Nigeria: 1990-2016. Journal of Finance and Economics, 6(1), 19-25.

Demirguc-Kunt, A., and R. Levine. 2009. ―Finance and Inequality: Theory and Evidence. Annual Review of Financial Economics 1: 287–318.

Dev, S. M. (2006). Financial inclusion: Issues and challenges. Economic and political weekly, 4310-4313.

Demirgüç-Kunt, A., & Klapper, L. (2012). Financial inclusion in Africa: an overview. The World Bank.

Demirguc-Kunt, A., & Klapper, L. (2012). Measuring financial inclusion: The global findex database. The World Bank.

Efobi, U. R., Orkoh, E., & Atata, S. (2018). Financial Inclusion and Foreign Market Participation of Firms: A Quasi-experiment from Nigeria. In Financing Sustainable Development in Africa (pp. 39-61). Palgrave Macmillan, Cham.

Fowowe, B. (2020). The effects of financial inclusion on agricultural productivity in Nigeria. Journal of Economics and Development.

Fungáčová, Z., & Weill, L. (2015). Understanding financial inclusion in China. China Economic Review, 34, 196-206.

Grimes, P. W., Rogers, K. E., & Smith, R. C. (2010). High school economic education and access to financial services. Journal of Consumer Affairs, 44(2), 317-335.

Ibrahim, S. S., & Aliero, H. M. (2020). Testing the impact of financial inclusion on income convergence: Empirical evidence from Nigeria. African Development Review, 32(1), 42-54.

Klapper, L., L. Laeven, and R. Rajan. (2006). Entry Regulation as a Barrier to Entrepreneurship. Journal of Financial Economics 82: 591–629.

Klapper, L., Lusardi, A., & Van Oudheusden, P. (2015). Financial literacy around the world. Standard & Poor’s ratings services global financial literacy survey.

Langley, P. (2008). The Everyday Life of Global Finance: Saving and Borrowing in AngloAmerica, Oxford: Oxford University Press.

Marron, D. (2013) ‘Governing poverty in a neoliberal age: New Labour and the case of financial exclusion’, New Political Economy, 18, 6, 785-810.

Montgomerie, J. (2008) ‘Bridging the critical divide: global finance, financialisation and contemporary capitalism’, Contemporary Politics, 14, 3, 233-52.

Niankara, I., & Muqattash, R. (2018). Financial inclusion, saving and borrowing behaviors in the United Arab Emirates and the United States: A comparative Analysis.

Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329-340.

Ozili, P. K. (2020a). Financial inclusion research around the world: A review. In Forum for social economics (pp. 1-23). Routledge.

Ozili, P. K. (2020b). Contesting digital finance for the poor. Digital Policy, Regulation and Governance.

Ozili, P. K. (2020c). Financial inclusion in Nigeria: determinants, challenges and achievements. Challenges and Achievements (March 2020).

Ozili, P. K. (2021a). Has financial inclusion made the financial sector riskier? Journal of Financial Regulation and Compliance.

Ozili, P. K. (2021b). Financial inclusion in Africa: What We Know.

Paramasivan, C., & Ganeshkumar, V. (2013). Overview of financial inclusion in India. International journal of management and development studies, 2(3), 45-49.

Reddy, Y. V. (2007, February). What RBI means to the common person. Speech presented at Karamchedu Village, Andhra Pradesh

Sarma, M. (2008). Index of financial inclusion (No. 215). Working paper.

Sharma, A., & Kukreja, S. (2013). An analytical study: Relevance of financial inclusion for developing nations. International journal of engineering and science, 2(6), 15-20.

Sharma, A., & Kukreja, S. (2013). An analytical study: Relevance of financial inclusion for developing nations. International journal of engineering and science, 2(6), 15-20.

Sahay, R., Čihák, M., N'Diaye, P. M. B. P., Barajas, A., Mitra, S., Kyobe, A., ... & Yousefi, S. R. (2015). Financial inclusion: can it meet multiple macroeconomic goals?

World Bank. (2008). Finance for All? Policies and Pitfalls in Expanding Access. Washington, DC: World Bank