Financial Inclusion: A Panacea for Economic Growth in Nigeria (2004 – 2020): An Empirical Review

Abstract

Financial inclusion has been considered as one of the most potent drivers of economic growth in countries across the globe, this is in view of the fact that financial inclusion creates access to financial resources which affords individuals the opportunity to participate in inclusive growth. The purpose of this paper was to provide a conceptual understanding of financial inclusion and the economic growth components, these variables were adequately reviewed and the relationship between both established. Empirical literatures on the subject matter were reviewed and the position of majority of the authors established. An empirical analysis was conducted to ascertain the relationship between financial inclusion and economic growth and the outcome revealed that financial inclusion promotes economic growth in Nigeria. The recommendations of this study includes the following amongst others; government should enact laws that will make financial services/resources readily accessible to those in the rural and remote communities in Nigeria so as to integrate them into the emerging financial order of the Nigerian financial system; Micro finance banks should be encouraged to intensify operations in remote communities as they can serve as intermediaries between the people in the local communities and the deposit money banks dominant in the urban areas.