Financial Inclusion, Economic Growth and Macroeconomic Stability in Nigeria

This study investigated the impact of financial inclusion on economic growth and macroeconomic stability in Nigeria (1980 – 2022). Using secondary data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin (various years) and World Development Indicators (WDI, 2023), the study employed the Autoregressive Distributed Lag (ARDL) technique in analysing the data. It was found that financial inclusion may not necessarily improve economic growth in the short run; it may not provide macroeconomic stability in the short run; financial inclusion enhances the growth of the economy in the long run, but the growth rate is slow; and financial inclusion can stabilise the macroeconomy (price level) in the long run. It was recommended, amongst other things, that a robust, stable and sustainable financial system be developed to deepen financial inclusion (like expanding credit and money supply, amongst other things) to encourage economic growth and stabilise the economy.