Digital Finance, Financial Inclusion, and Sustainable Development in Nigeria

This study examined the relationship between digital finance, financial inclusion, and sustainable development outcomes in Nigeria over the period 1990–2024. The Ordinary Least Squares (OLS) technique was employed using data from the Central Bank of Nigeria and the World Bank World Development Indicators. Key variables included credit to the private sector, bank deposits, mobile money accounts, population growth, GDP growth, and inflation, used to assess their effects on the Sustainable Development Index and financial inclusion. The results showed that credit to the private sector and mobile money accounts had significant positive effects on sustainable development, indicating that improved financial access and digital financial services enhance investment, productivity, and economic participation. In contrast, bank deposits had a negative but insignificant effect, while population growth significantly reduced sustainable development due to increased pressure on infrastructure and social services. GDP growth and inflation were statistically insignificant. Further findings revealed that mobile money accounts were the only significant determinant of financial inclusion, while GDP growth, inflation, and population growth were not significant. Overall, the study established that digital financial innovation, particularly mobile money, played a dominant role in driving both financial inclusion and sustainable development in Nigeria, whereas traditional macroeconomic variables had limited influence. The study concluded that sustainable development in Nigeria depends more on targeted financial inclusion and digital finance policies than on general macroeconomic performance. It therefore recommended the expansion of digital financial infrastructure, improved credit allocation to productive sectors, strengthened financial literacy, maintenance of macroeconomic stability, and enhanced human capital development as essential strategies for achieving inclusive and sustainable economic growth in Nigeria.