FINANCIAL INCLUSION AND POVERTY RATE: THE NIGERIAN EXPERIENCE

ONYIKE, SIXTUS CHIMEZIE
Department Of Banking And Finance Michael Okpara University Of Agriculture,
Umudike
onyikechimezie@gmail.com
SUNDAY DANIEL UCHE
Department Of Banking And Finance Michael Okpara University Of Agriculture,
Umudike
danoscopy2002@yahoo.com
EKEAGWU, INNOCENT CHUKWUEMEKA
Department Of Economics Michael Okpara University Of Agriculture, Umudike
ekeagwwu.innocent@mouau.edu

The paper evaluated the impact of financial inclusion on the rate of poverty in Nigeria. The ex-
post facto research design was adopted, aggregate Secondary, annual time series data were
sourced from Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank statistical
database. The data collected for the period spanning between 1992 and 2019 were analysed
using the Autoregressive Distributed Lag (ARDL Bound) testing approach to Co-integration
and Vector error correction model on a five variable model which was employed. Findings
suggested that there exists a long run and short run association between the variables used in
the study. Also in the long and short run, Microfinance bank credit, currency outside bank and
commercial bank rural deposit exerted negative effect on the rate of poverty in Nigeria, while
commercial bank rural credit exerted a positive effect. The study among others recommended
that a strong and vigorous financial literacy campaign coupled with financial advice and
monitoring should be involved in the financial inclusion drive of the authorities. Concerted
efforts should be made to evolve policy to encourage/ persuade banks to grant credits at
concessionary interest rate to rural dwellers.
Keywords: Financial inclusion, Poverty, ARDL cointegration, credit and Nigeria.

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