IIARD International Institute of Academic Research and Development

Journal of Business and African Economy (JBAE )

E-ISSN 2545-5281
P-ISSN 2695-2238
VOL. 11 NO. 1 2025
DOI: 10.56201/jbae.v11.no1.2025.pg29.40

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Determinants of Financial Inclusion in Nigeria: An Empirical Analysis

Haruna DZUGWAHI, PhD, Prof. Aliyu IDRIS

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Abstract

This study investigates the key determinants of financial inclusion in Nigeria, focusing on factors such as the number of bank branches, Automated Teller Machine (ATM) penetration, inflation rate, and interest rate. Utilising data from the Central Bank of Nigeria (CBN), the World Bank's Global Findex database, and the National Bureau of Statistics (NBS), the study applies the Dynamic Ordinary Least Squares (DOLS) regression model to examine the relationship between these variables and financial inclusion. The findings reveal that bank branches and ATMs have a positive and significant relationship with financial inclusion. In contrast, inflation rate and interest do not show a significant impact. The results provide insight into the role of macroeconomic and infrastructural factors in enhancing financial accessibility, which can inform policy interventions to improve financial inclusion across the country.

Financial Inclusion, Bank Branch, Inflation rate, Interest Rate

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