EFFECTS OF FINANCIAL INCLUSION ON POVERTY ALLEVIATION IN NIGERIA

Abstract

This study examined the impact of financial inclusion on poverty alleviation in Nigeria using econometrics model, for the period 2010 to 2021. The data was sourced from the United nation office for coordination of Humanitarian affairs UNOCHAindicators,2021, the Central Bank of Nigeria financial inclusion report, the world bank financial inclusion indicator and the united states agency for international Development USAID 2020 report. The study employed the ordinary econometrics
regression technique. Financial inclusion is found to exert significant impact on per capita income, reduces poverty level and improves standard of living. Specifically, the result shows that not for profit organization (NGO) cash transfer activities had exerted positive impact on per capita income, increase standard of living and contributes to poverty alleviation. The finding also reveals that number of automated teller machines/ point of sale services enhanced financial inclusion, income generation and poverty alleviation and was statistically significant. The study recommends that the Central Bank of Nigeria needs to come up with effective monetary policies that can influence financial inclusion and alleviation of poverty. This will encourage accessibility to financial services at affordable cost for poverty alleviation purposes