JOURNAL OF AFRICAN CONTEMPORARY RESEARCH

Financial Inclusion, Macroeconomic Stability and Poverty Allevaition in Nigeria

OLOLADE SIKIRU ONIYIDE, EBELE P. IFIONU, GODFREY O. OMOJEFE

June 22, 2024

Citation

JOURNAL OF AFRICAN CONTEMPORARY RESEARCH , Vol. 15 (1) (2024) , pp. 152-166

Details

ISSN: 9783-7967
Published: June 22, 2024
Status: Published

Abstract

The study empirically evaluates how financial inclusion and macroeconomic stability affect poverty reduction in Nigeria from 2009 to 2023. Specifically, the study considered how bank account per head, inflation rate, number of bank branches, and bank loans to rural dwellers influence poverty index. Data came from the Central Bank of Nigeria statistical bulletin, the World Bank database, and the National Bureau of Statistics. The study employed the descriptive statistics, unit root, and ARDL techniques at the 5% significant level. The unit root test revealed that the variables had mixed stationarity; necessitating the ARDL F-bound test the shows the absence of long-run form. The findings show that bank loans to rural dwellers is positive and significant to poverty index, inflation rate is positive but insignificant to poverty index, and number of bank branches and bank account per head are negative and insignificant to poverty index in Nigeria. The research concludes that the number of bank accounts per person is the primary factor of financial inclusion that has a substantial impact on the poverty index in Nigeria. Therefore, the research recommends that banks should lower the lending rates and collateral requirements for rural residents in order to enhance financial inclusion and simultaneously alleviate poverty in Nigeria.

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