Financial inclusion and inflation in Nigeria

This study examined the impact of financial inclusion on inflation in Nigeria. Secondary Data were obtained from Central Bank of Nigeria statistical bulletin from 1993 to 2022. The study employed Auto Regressive Distributed Lag to analyze the data obtained. The study found that credit to small and medium scale, currency in circulation, deposits of rural branches of commercial banks and number of registered mobile money account have impact on inflation in Nigeria. The study concluded that financial inclusion influences inflation in Nigeria. The study recommends that financial institutions, especially commercial banks in Nigeria, expand their loans to the small and medium scale enterprises for more profitable investments in light of the results and conclusions derived from them. This will improve domestic investment, expand the size of the financial sector's expansion, and increase access to investible money. Finally, monetary authorities in Nigeria should put measures in place to always ensure financial inclusiveness. This will go a long way in reducing uncertainty regarding investment opportunities and encourage investors to put their funds in the local markets.