Title: Poverty reduction in Nigeria: the impact of financial inclusion

Authors: Uzoma Emmanuel Ogbonna; Collins O. Irem; Chioma Iherueome Ibiam

Addresses: Banking and Finance Department, Ebonyi State University, Abakaliki, Nigeria ' Banking and Finance Department, Ebonyi State University, Abakaliki, Nigeria ' Banking and Finance Department, Ebonyi State University, Abakaliki, Nigeria

Abstract: This study examined poverty reduction in Nigeria; the impact of financial inclusion with the objective of determining the impact of financial inclusion on poverty reduction in Nigeria. Augmented Dickey-Fuller unit root test, Johansen cointegration and error correction model were used in data analysis. The study revealed that commercial bank branches per 100,000 adults and depositors with commercial bank per 1,000 adults have positive and significant impact on poverty reduction in Nigeria while borrowers from commercial banks has negative and significant impact on poverty reduction in Nigeria. The study recommended that commercial banks should increase their marketing strategies in order to attract many deposits. In the same vein, banks should be encouraged to expand branch operations to penetrate the rural economy so as to encourage the poor have access to financial services and reduce poverty incidence and borrowers should be educated on the implication of misappropriation of borrowed fund.

Keywords: financial inclusion; poverty index; poverty alleviation; Nigeria.

DOI: 10.1504/IJBG.2025.144865

International Journal of Business and Globalisation, 2025 Vol.39 No.3/4, pp.346 - 365

Received: 08 Apr 2021
Accepted: 12 Oct 2021
Published online: 06 Mar 2025 *

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