Financial Inclusion and poverty alleviation in Nigeria

Abstract

The study examined the impact of financial inclusion on poverty alleviation in Nigeria using time series data for the period 2002 to 2015. The data was sourced from the World Bank indicators, 2016. The study employed the ordinary least squares multivariate regression technique. Financial inclusion is found to exert significant impact on per capita income, reduces poverty level and improves standard of living. Specifically, the result shows that commercial bank branches per 100, 000 adults exert positive impact on per capita income, increase standard of living and contributes to poverty alleviation. Depositors with commercial banks per 1000 adults exerted a negative effect on poverty alleviation and are not statistically significant under the reference period. Borrowers from commercial banks per 1000 adults are found to increase per capita income and by extension poverty alleviation and are not statistically significant. The finding also reveals that number of automated teller machines enhanced financial inclusion, income generation and poverty alleviation and was not statistically significant. The study recommends that the Central Bank of Nigeria needs to come up with effective monetary policies that can influence financial inclusion and alleviation of poverty. This will encourage accessibility to financial services at affordable cost for poverty alleviation purposes.