article · NIU journal of humanities.
An evaluation of economic data from 2009 to 2023 examines the direct link between financial inclusion measures and economic growth across Nigeria. Using the fully modified ordinary least squares analytical method, the findings reveal that automated teller machines, bank branches, private credit relative to gross domestic product, and the overall volume of mobile money transactions each exert a significant positive influence on economic expansion. In contrast, the sheer count of registered mobile money accounts demonstrated no statistically meaningful contribution to growth over the studied timeframe. Consequently, broad access to financial infrastructure serves as a major driver of national development, underscoring the necessity for banking executives and financial regulators to maintain and expand functional automated teller machine networks to sustain economic momentum.
Understanding which financial inclusion channels genuinely drive growth helps policymakers and financial institutions allocate capital effectively. While digital registrations alone may not translate into tangible economic outcomes, active transaction volumes and physical banking infrastructure such as cash dispensers and branches remain vital pillars supporting economic activity in developing markets.
The findings inform commercial banks, fintech operators, and central bank regulators seeking to prioritise infrastructure investments. Rather than focusing solely on user registration metrics, financial service providers can concentrate capital expenditure on expanding active transaction capacity and automated teller machine networks. This represents applied macroeconomic research using historical data, providing evidence to guide operational strategies and financial policies rather than offering an immediate commercial product.
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The study investigated the link between financial inclusion and economic growth in Nigeria over the period 2009 to 2023. The specific objectives of the study were to find out whether automated teller machine (ATM), number of registered mobile money accounts (RMM), private credit to GDP (PCR), number of bank branches (NBB) and total volume of mobile money transactions to GDP (VMM) significantly affected economic growth. For this reason, the fully modified ordinary least squares (FMOLS) method was employed for the analysis of data and the results obtained indicated that automated teller machine (ATM), private credit to GDP (PCR), number of bank branches (NBB) and total volume of mobile money transactions to GDP (VMM) had significant positive relationship with economic growth; while the number of registered mobile money account (RMM) does not have any significant impact on economic growth in Nigeria. The study therefore concludes that financial inclusion is a significant determinant of economic growth in Nigeria within the period of investigation. Thus, it is recommended that, since automated teller machine (ATM) is a significant determinant of economic growth in Nigeria, regulators and indeed, management of banks must constantly provide the enabling environment for expansion of the use and functionality of automated teller machines (ATMs) so that it will continue to make positive impact on the Nigerian economy. Keywords: Financial inclusion, Economic growth, Automated teller machine, Mobile money.
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DOI: 10.58709/niujhu.v10i2.2198
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