Effect of financial inclusion indicators on the economic performance of Nigeria (2011-2023)

Abstract This study investigates the impact of financial inclusion indicators, including bank account ownership, access to banking services, access to ATMs, and financial literacy, on Nigeria’s economic performance, specifically focusing on real GDP (rGDP). Using an ex post facto research design, the study analyzes secondary data from 2011 to 2023 sourced from reputable institutions like the Central Bank of Nigeria and the National Bureau of Statistics. The study applies various measurement techniques to assess the relationship between financial inclusion and key economic indicators such as RGDP, employment rates, wealth distribution, and poverty levels. The findings reveal a significant positive effect of financial inclusion on Nigeria's rGDP, supporting the notion that increased access to financial services fosters economic growth. However, the study also highlights that financial inclusion alone is not sufficient to address Nigeria’s poverty challenges, as socio-economic barriers and limited financial literacy hinder its full potential. The research affirms the relevance of Endogenous Growth Theory, which posits that internal factors such as human capital development and innovation drive long-term economic growth. The study recommends a multi-faceted approach, including expanded digital financial infrastructure, regulatory reforms to support fintech innovations, and targeted policies to improve financial literacy, especially in rural areas. Future research is suggested to explore the role of emerging financial technologies and demographic variations in financial inclusion impacts, offering a broader understanding of global financial development strategies. This research contributes to the ongoing discourse on financial inclusion and its critical role in economic development. Keywords: Financial inclusion, Economic performance, Bank account ownership, Real GDP (rGDP), Financial literacy Wordcount: 243