DIGITAL FINANCIAL PENETRATION, FINANCIAL INCLUSION, AND MACROECONOMIC STABILITY IN NIGERIA

The study examined the influence of the digital financial penetration, financial inclusion, and macroeconomic stability on each other in Nigeria. For this purpose, annual data for 2005-2025 were used. Mobile money penetration level was assessed through the number of mobile money accounts and the amount of electronic payments volume. Bank account penetration and ATM penetration were selected as proxies for financial inclusion. Exchange rate stability was considered a measure of macroeconomic stability. In order to examine the impact, the ARDL bound test approach was applied. It was found that mobile money penetration positively and significantly influences exchange rate stability in both the short and long runs. Meanwhile, the amount of electronic payments is negatively and significantly related to exchange rate stability only in the long run. There are no statistically significant associations between bank account penetration and ATM penetration, on the one hand, and exchange rate stability, on the other hand. Therefore, availability of the financial infrastructure per se does not influence macroeconomic stability.