Impact of Financial Inclusion on Poverty Reduction in Nigeria: (1985-2023)

The effect of financial inclusion on poverty in Nigeria is examined in this study. The research used yearly data from 1986 to 2023. The study moves on to utilize the ARDL model for its data analyses. The findings demonstrate a positive and statistically influence of bank loans to rural areas and the distribution of commercial bank branches on the poverty rate. During the long run, demand deposits from rural areas have a detrimental and substantial effect on poverty. According to the findings of the Toda and Yamamota causality test, there is a unidirectional causal relationship between the poverty rate and demand deposits in rural areas of the country as well as between the poverty rate and bank loans in rural areas and commercial bank branch spread to poverty rate. The study suggests that the government should implement policy initiatives to enhance financial deepening and create financial reform policies that would have a commensurately positive welfare impact on people's living situations in light of the aforementioned analysis and its consequences.