IMPACT OF FINANCIAL INCLUSION ON POVERTY REDUCTION IN NIGERIA

This study examines the impact of financial inclusion on poverty reduction in Nigeria, motivated by the persistence of high poverty rates despite sustained national efforts to expand access to formal financial services. The broad objective is to assess whether indicators of financial inclusion including bank account ownership, mobile money and agent banking penetration, and access to credit have significantly influenced poverty outcomes in Nigeria. The study is guided by three specific objectives and corresponding hypotheses, and adopts an ex-post facto research design using secondary time-series data sourced from the Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), the World Bank Global Findex Database, and EFInA Access to Financial Services surveys. Data were analyzed using descriptive statistics, unit root tests, and regression-based econometric techniques (Ordinary Least Squares/Error Correction Model) to establish the direction and significance of the relationship between financial inclusion and poverty reduction. The findings are expected to clarify whether expanding formal financial access functions as an effective channel for reducing poverty in Nigeria, or whether structural and implementation gaps limit its welfare impact. The study concludes with policy recommendations aimed at strengthening the link between financial inclusion initiatives and poverty alleviation outcomes, targeted at the CBN, deposit money banks, fintech operators, and other financial sector stakeholders.