A Comparative Analysis of Financial Inclusion and Financial Literacy: Investigating Their Interrelationship in Selected Urban and Rural Areas of Kano State, Nigeria

This study examines the relationship between financial inclusion and financial literacy in urban and rural areas of Kano State, Nigeria. Given the increasing importance of financial inclusion in fostering economic development, this research seeks to explore how financial literacy influences access to and use of formal financial services across different geographical contexts. Using a mixed-methods approach, data were collected from 384 respondents, split equally between urban and rural areas. The study found a significant difference in both financial inclusion and financial literacy levels between urban and rural areas, with urban respondents demonstrating higher levels of both. The results revealed that financial literacy positively correlates with financial inclusion, with stronger relationships observed in urban areas. Socio-demographic factors such as income, education, and age were found to be key determinants of financial literacy and inclusion. The study concludes that while financial literacy plays an important role in enhancing financial inclusion, challenges such as limited access to financial services and lower educational attainment in rural areas hinder broader financial participation. The research highlights the need for targeted financial education programs and the expansion of financial services to underserved rural populations to bridge the financial inclusion gap in Nigeria.