An Investigation into the Regional Disparities in Financial Inclusion among MSME Owners in North Central Nigeria

Micro, Small, and Medium Enterprises (MSMEs) are widely recognized as vital engines of economic growth, employment generation, and poverty alleviation, particularly in developing countries like Nigeria. In the North Central region of Nigeria, MSMEs contribute significantly to local economies and livelihoods, yet many of these enterprises remain financially excluded. However, the financial exclusion of MSMEs owners has been attributed to characteristics of MSMEs owners and unattractiveness of financial service. These discourage MSME owners from seeking financial services and engage with financial institutions. Additionally, there is dearth of comprehensive studies on this issue, particularly in North Central Nigeria, where the problem is reportedly endemic, highlighting the need for further study. Against this backdrop, it is essential to investigate the degree of difference of financial inclusion of MSMEs owners in the North Central, Nigeria. The specific objectives of the study were to; determine the degree of difference of financial inclusion of MSMEs owners in terms of (size of business, level of education, risk preference, financial literacy and social network, proximity to financial institutions, government financial support and financial service quality) in the North Central, Nigeria. The study employed survey research design method. The population of the study consists of 11,607 MSMEs owners in North central; Nigeria while both stratified and random sampling technique were employed. The sample size of 435 was determined via Krejcie & Morgan (1970) sample size formula. The data was analyzed using ANOVA. The findings of the study revealed that: (i) there is significant difference in the level of financial inclusion among MSME owners in the North Central, Nigeria. The study concludes that financial inclusion of MSMEs owners differs across the state in the North Central, Nigeria. Therefore, the study recommended that government and financial institutions should design region-specific programs that address the unique barriers faced by MSME owners in less financially included areas. This could include mobile banking initiatives, financial literacy training, and simplified loan application processes.