This study examined the effect of digital financial inclusion on the effectiveness of monetary policy transmission in Nigeria from 2009 to 2023. This study was motivated by the continuous rise in the general price of goods and services in Nigeria. The study employed a quantitative ex post facto research design. Monetary policy transmission was measured using the inflation rate while digital financial inclusion was measured using Atm value, Pos value, Web Payment value, and Mobile Payment value. Principal Component Analysis was employed to compute a single index for digital financial inclusion using the measures. Control variables in the study are the GDP growth rate and exchange rate. Data were sourced from the CBN statistical bulletin (2023) and the World Development Indicators Database. The variables were subjected to a stationary test using the Augmented Dickey-Fuller and Phillips-Perron tests, and the result indicated mixed order of integration. The ARDL bound test was employed, and it was found that there is no significant long-run relationship between digital financial inclusion and the inflation rate in Nigeria. The regression result shows that digital financial inclusion had a positive and insignificant effect on the inflation rate in Nigeria. The study concluded that digital financial inclusion is not a contributing factor to inflation pressure in Nigeria. Therefore, it was recommended that CBN should move from pushing for more digital account opening to "usage depth" in digital financial services, thereby incentivizing digital platform providers to go beyond mere peer-to-peer transfers, to digital credit, micro-insurance, and term savings accounts.
Okereke et al. (Mon,) studied this question.