Covid-19 Pandemic and Financial Inclusion in Nigeria

Abstract

COVID-19 pandemic which started in China in 2019 and quickly spread to almost all countries wreaking havoc on their economies, no doubt, would have affected financial inclusion in Nigeria. The study employed Event Study methodology developed by Dolly (1933) and applying t-test of paired significant mean differences on monthly total, of active banks accounts five months before and five months into the emergence of the pandemic in Nigeria extracted from Central Bank of Nigeria (CBN) to assess the impact. Findings revealed that the pandemic exerted a positive impact on financial inclusion in Nigeria. Based on the finding, it was recommended that the financial inclusion experience garnered during the lockdown and social distancing under the pandemic and sequent COVID-19 Relief Loans payment by the government to the vulnerable poor people be empirically studied and the outcomes be incorporated into policies by the Nigeria financial Inclusion Strategies Committee and CBN so as to stimulate rapidly financial inclusion in Nigeria.