Mobile Money Transfer Services on Financial Inclusion and Poverty Reduction in Rural Area in Nigeria

In recent years, mobile money services have emerged as a crucial tool in enhancing access to financial services in regions traditionally underserved by conventional banking infrastructure. Therefore, this study seeks to examine the impact of mobile money transfer services on financial inclusion and poverty reduction in rural areas of Nigeria spanning through 2010 to 2023. The research employs econometric techniques such as the Autoregressive Distributed Lag (ARDL) model and Error Correction Model (ECM) to assess the long-term and short-term dynamics of mobile money, Point-of-Sale (POS), Automated Teller Machine (ATM) transactions, and their relationship with poverty levels. The results indicate a significant positive long-run relationship between ATM transactions, POS services on poverty reduction, with mobile money showing a negative effect on poverty reduction. The study provides evidence that the Nigerian government should consider revising the legal framework to allow mobile network operators to take a more active role in providing mobile money services. The success of mobile money in other African countries can serve as a useful reference for policy adjustments.