Financial Inclusion and Poverty Reduction in Nigeria: The Role of Digital Financial Services (2010–2021)

The strategic contributions of digital financial services in alleviating poverty and scaling financial inclusion are a profound phenomenon involving numerous advantages ranging from a constantly evolving economy. This paper examines the role of digital financial services on financial inclusion and poverty reduction in Nigeria. The study employed descriptive statistics, correlation analysis and ordinary least square regression to draw inferences. Adopting the Automated teller machine, point of sale, Interest transfers and mobile money operator as dimensions of digital financial services, which is the independent variable, ordinary least squares were used to measure its role in poverty reduction as the dependent variable. Findings revealed that the usage of digital financial services does not suffice to influence poverty reduction in Nigeria, but adopting and adapting to digital financial services is pivotal to the digitalization of the financial system here in Nigeria. Conclusively, this research establishes the requirements for financial inclusion and the use and exploitation of the vast potential and significant role that digital financial services play in the alleviation of poverty for economic development.