Financial Inclusion in Nigeria: Determinants, Challenges, and Achievements

Abstract

Purpose: This chapter analyzes several indicators of financial inclusion in Nigeria.

Method: This chapter uses trend analyses to examine the indicators of financial inclusion in Nigeria.

Findings: The findings reveal that people with a secondary education and unemployed people had higher levels of debit card ownership, higher levels of account ownership of any type, and higher levels of account ownership in a financial institution. Borrowings from family or friends decreased during the period. The level of savings and borrowings was higher for adults with at least a secondary education while the level of savings, using a savings club or persons outside the family, decreased among females, poor people and among people with a primary education. Credit card ownership was low among unemployed people, while credit card ownership was much higher among employed people, the richest people and among people with at least a secondary education. Finally, borrowings and savings using family, friends, or saving clubs significantly contributed to economic growth than borrowings and savings through financial institutions.

Implications: It shows that Nigerian authorities should increase the number of formal account ownership by removing obstacles such as income and education bias and gender discrimination in the delivery and use of financial services.

Originality: Recent studies in the literature have investigated financial inclusion in developing economies, but little attention has been paid on the determinants and challenges of financial inclusion in Nigeria. This chapter aims to fill this gap by providing a comprehensive understanding and analysis of financial inclusion in Nigeria.

Citation

Ozili, P.K. (2021), "Financial Inclusion in Nigeria: Determinants, Challenges, and Achievements", Özen, E., Grima, S. and Gonzi, R.D. (Ed.) New Challenges for Future Sustainability and Wellbeing (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 377-395. https://doi.org/10.1108/978-1-80043-968-920211020