IMPACT OF FINANCIAL TECHNOLOGY AND FINANCIAL INCLUSION ON ECONOMIC DEVELOPMENT IN NIGERIA: AN EMPIRICAL ANALYSIS 2009 - 2024

Abstract

This study empirically investigates the impact of financial technology (FinTech) and financial inclusion on economic development in Nigeria using annual time-series data covering 2009–2023 (15 years). Financial technology is proxied by digital payment channels such as mobile banking transactions, ATM transactions and POS transactions, while financial inclusion was represented by number of bank accounts, (NBA) and credit to the private sector (CPS). Economic development is measured using real GDP per capita (RGDPPC). The study employs the Autoregressive Distributed Lag (ARDL) model alongside descriptive statistics, unit root test, bounds test, and diagnostic tests. The results indicate that financial technology significantly enhances financial inclusion and contributes positively to economic development in Nigeria in the long run. The ARDL bounds test confirms the existence of a long-run relationship among the variables. The findings suggest that improvements in digital financial services and access to financial institutions increase economic participation and productivity. The study recommends strengthening fintech infrastructure, expanding digital payment systems and implementing policies that encourage financial access in rural areas to accelerate economic development.