Financial Inclusion, Governance and Welfare Analysis in Nigeria

  • Joseph A. Omojolaibi University of Lagos, Akoka, Lagos, Nigeria
Keywords: Financial inclusion, poverty, income inequality, Economic progress


Some of the macroeconomic challenges inherent in the Nigerian economy are poverty and income inequality. For sustainable and inclusive growth, the crucial elements of financial inclusion and transparent democratic practice need to be put into consideration. This study enquired empirically the impact of financial inclusion and governance characteristics on welfare in Nigeria through three key channels: investment in infrastructure, per capita GDP and income inequality. The data covered the period 1980-2014, while the study relied on the Generalised Method of Moment (GMM) estimation technique for the analysis. It was discovered that financial inclusion and governance indices have statistical relevance in determining infrastructural investment in Nigeria. The result also showed that governance indices and commercial bank deposit significantly increase per capita GDP; and that financial inclusion has the tendency to bridge the gap between the rich and the poor and reduce the prevalence of poverty in the economy. The findings suggested that to reduce income inequality and increase per capita GDP, more measures must be taken to address financial exclusion of low-income groups from financial services; and that transparent democratic practice that will stimulate investment in infrastructure and enhance per capita GDP should be instituted in Nigeria.

Author Biography

Joseph A. Omojolaibi, University of Lagos, Akoka, Lagos, Nigeria

Department of Economics, University of Lagos, Akoka, Lagos, Nigeria


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