Financial Inclusion and Economic Growth in Nigeria

Financial development is not simply a result of economic growth; it is also the driver for economic growth. Financial inclusion which is the feature of financial development is a process that marks improvement in quantity, quality, and efficiency of financial intermediary services. It generates local savings, which in turn lead to productive investments in local business. This paper investigates the impact of financial inclusion on economic growth in Nigeria. The paper aims to highlight the determinants of financial inclusion and its impact of economic growth. Secondary data were sourced from world development indicators and ordinary least square regression model was used to analyse the data. The result shows that financial inclusion is a significant determinant of total factor production as well as capital per worker which invariably determine the final level of output in the economy. The study recommends that natural and economic resources should be adequately harnessed as alternative means of revitalization and diversification of the mono-cultural nature of the oil dependent economy.