Effect of Financial Inclusion on Economic Growth: The Case Study of Nigeria

Financial Inclusion has been a widely discussed topic in recent years. This paper aims to analyze the effect of Financial Inclusion on economic growth in Nigeria. The use of descriptive analysis will try to explain the correlation between more inclusion and achievement of higher economic growth. Nigeria is the most populous country in Africa and the largest oil producer, but statistics show the level of Financial Inclusion of citizens is very low. This thesis tries to explain why it is low and shows the factors that appear significant to achievement of Financial Inclusion. Due to data limitations, instead of advanced time series techniques, the thesis employs a descriptive analysis for the period of 2005-2015. Results are not conclusive on whether or not the Financial Inclusion has an impact on economic growth. As more detailed data becomes available, further studies employing advanced time series techniques are recommended. A group of similar economies can also be analysed using appropriate panel data techniques.