Bridging the Divide: How Big Data is Redefining Financial Inclusion for Nigerians

The rapid proliferation of digital technologies and data generation has positioned big data as a transformative force in the Wotrld financial sector. Through leveraging alternative data sources such as mobile usage, social media activity, and transaction records, financial institutions are expanding services to previously unbanked and under-banked populations, thereby promoting financial inclusion. This paper explores how big data usage is redefining financial services by enhancing accessibility, personalization, and security for Nigerian financial consumers. Data for the analysis were collected from both the World development indicator data base as well as the Nigeria CBN statistical bulletin. The data are from 2005 to 2023. The ARDL long-run and bound test is used in the analysis of the data collected. Findings indicates that Big Data has a positive impact on financial inclusion in Nigeria within the period under study while both quality of legislation and GDP exerted negative impact on financial inclusion in Nigeria. It is recommended among others, that policy makers in Nigeria should integrate Big Data analytics directly into the national statistical inclusion strategy and elevate the statistical office by acknowledging its role as a partner in financial inclusion. The study also recommends that Nigeria policy makers should apply the principle of regulatory proportionality and context specific legal review. Finally, it also recommended that Nigeria policy managers should adopt the strategy of inclusive growth Re-anchoring (IGR) focused on redirecting the benefits of GDP growth to the financially underserved.