Financial Innovation, Financial Inclusion and Economic Growth in Nigeria: A Quantitative Analysis (2014 – 2023)

This study quantitatively assessed how financial innovation and inclusion affect Nigeria's economic growth between 2014 and 2023. Using time-series data from the 2023 Central Bank of Nigeria (CBN) Statistical Bulletin and the World Development Indicator, the research applied the Ordinary Least Square (OLS) Multiple Regression technique. The key findings are: Positive Impact of Innovation: Financial inclusion and digital banking channels, specifically ATM and mobile transactions, were found to have a positive impact on economic growth, Strongest Digital Drivers: The value of Point of Sale (POS) transactions had the most powerful positive effect on growth, followed by ATM, mobile, and web transactions, Inconsistent Results: While the value of POS and web transactions was generally significant, their impact was not entirely consistent throughout the analysis and Bank Branches Ineffective: Notably, the number of bank branches (NBB) showed no positive impact on economic growth, suggesting that the high capital expenditure on physical branches does not drive the economy. As a result of these findings, the paper concluded that financial inclusion and banking sector innovations have an important role to play in fostering economic growth in Nigeria. Finally, the paper recommended that recent technology should be adopted to enhance the use recent innovation and opening of more banks’ branches should be encouraged to enhance the existing financial institutions in Nigeria.