How Financial Inclusion Drives Economic Growth in Nigeria
Hafiz Ahmed & Badariyya Ahmed,
Department of Banking and Finance,
Kano State Polytechnic
Email: kawuhafiz@gmail.com; badariyyaahmed@gmail.com
ABSTRACT
Nigeria is among the emerging market with mixed economy changing through financial, service, manufacturing and technological sectors. It is ranked as the 30th-largest economy in the world in terms of nominal GDP, and the 23rd-largest in terms of purchasing power parity. It has become evident that financial services sector has been a
vital sector, and of concern that needs to be reengineered and promoted in order to ensure outreach of financial inclusiveness to the unbanked as well as under banked sectors of the society. Financial inclusion has retain to pull toward attention through the global financial development across the years within an economy because of its ability to fasten economic growth. Given that millions of people are excluded from formal financial
services globally, there is a potential loss of deposits or savings, loss of investible funds and an attendant loss of capacity of the global economy to generate wealth. Accessibility to financial services is generally recognized as way of enhancing credit creation and promoting capital accumulation through increasing the level of several activities like economy and investment. Most importantly, access to finance and its use, is an essential
policy tool used by governments and policy makers to stimulate economic growth. Making the availability of finance affordable to economic agents, there will be increase in economic activities and perhaps output growth. Financial inclusion offers a platform that could accommodate all income earners to be integrated into the financial system
for inclusive growth.
