Effects of Digital Financial Inclusion on Savings in Nigeria

Digital financial inclusion (DFI) has emerged as a transformative tool for deepening access to formal financial services in emerging economies. This study explores the extent to which DFI influences macroeconomic variables, specifically savings. The study covered the period 1990 – 2023 and used the ARDL regression model. The dependent variable was gross domestic savings. The independent variables include POS, ATM, DIL with EXR as the control variable. The study found that the independent variables have negative and significant relationship with savings, aside DIL. The digital loans were found to have a positive and insignificant relationship with savings over the period. The study concluded that digital financial inclusion has demonstrable macroeconomic benefits for Nigeria if well managed. Amongst others, the study recommends that savings should be regulated when using digital financial technologies, in favour of the local economy.