Effect of Financial Inclusion and Digital Finance on Poverty Alleviation: Nigeria's Perspective
Abstract
This study examined the effect of financial inclusion and digital finance on poverty alleviation in Nigeria. However, the specific objectives were to ascertain the relationship between volume of web-based transactions and real GDP of Nigeria, to establish the relationship between volume of POS transactions and real GDP of Nigeria and to investigate the relationship between volume of ATM transactions and real GDP of Nigeria. This study adopted the ex-post facto design. Since this study adopts Nigeria as a case study, the period covered (2015-2024) was adopted as the sample for this study. This study made use of secondary data obtained from National Bureau of statistics (NBS) factbook and Central Bank of Nigeria statistical bulletins for the various years under study. The collected data for this study were computed and analyzed using descriptive statistics and multiple linear regression tools with the aid of SPSS 20.0 software. The study findings revealed that volume of Web-based transactions has a non-significant inverse relationship (Coeff.=-0.823 {0.469}) with real GDP of Nigeria while volume of POS transactions has a positive non-significant relationship (Coeff.=0.956 {0.410}) with real GDP of Nigeria. it also revealed that the volume of ATM transactions has a positive non-significant relationship (Coeff.=0.750 {0.111}) with real GDP of Nigeria. In conclusion, the study underscored the importance of promoting financial inclusion and digital finance as a strategy for poverty alleviation in Nigeria. The recommendations made included that the Central Bank of Nigeria and other regulatory agencies should strengthen regulatory frameworks and oversight mechanisms to ensure the security, stability, and integrity of digital financial systems, and protect the rights and interests of consumers.
Keywords
Financial inclusion
Digital finance
Poverty alleviation
Web-based transactions
POS transactions
ATM transactions
Real GDP
References
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