EFFECTS OF FINANCIAL INCLUSION ON PER CAPITAL INCOME IN NIGERIA
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Date
2020-06
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Publisher
Faculty of Management Sciences, University of Ilorin
Abstract
Financial accessibility is an important strategy used for stimulating economic growth and efficiently allocate financial resources for productivity. Yet, Nigerians do not have adequate access to formal finance and are forced to rely on risky and expensive informal services thereby limiting their contribution to economic growth. Hence, the need to examine the effects of financial inclusion on per capital income in Nigeria. In line with this objective, the study employed time series data covering the period of 1987 to 2019. The method of data analysis used in the study was Autoregressive Distributed Lag Model. The study revealed that financial inclusion has significant impact on per capital income in Nigeria at 1% significance level with coefficient value of 6.528999. The study also revealed that interest rates negatively impact on per capital income in Nigeria at 1% significance level with coefficient value of -4.035544. The study concluded that financial inclusion is a significant determinant of per capital income in Nigeria. The study recommends that management of banks should managed interest rates in such a way that will encourage the usage of financial services.