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VOL. 11, ISSUE 1 (2024)
Financial inclusion, monetary policy and economic growth in Nigeria
Authors
Eugene Eduo Okpe, Ugochukwu Henry Agbarakwe
Abstract
This paper explored the nexus between financial inclusion, monetary
policy and economic growth in Nigeria from 1981- 2019. The survey employed
secondary data to calibrate the nexus and the data were sourced from Central
Bank of Nigeria statistical bulletins and the World Bank group published annual
statistics. The study adopted the following techniques of data evaluation, unit
root test, ARDL Bound cointegration test, ARDL short-run and ARDL Error
Correction Model test. The result portrays in totality that, in both the short
and long-runs the model variables were statistically and theoretically
significant in stimulating economic growth in Nigeria. However, the Bound
F-stat indicates that there is no long run association among the variables.
Conversely, ECM test results do not only reveal the existence of a long
relationship among the variables, but the findings show that an increase in the
branches of DMBs has the potential to stimulate economic growth in Nigeria. The
work admonished the Central Bank of Nigeria to periodically review its monetary
policy rate to a single digit; also a downward review of other monetary policy
instruments is necessary. The banks are required to expand their operational
network in order to capture the financially excluded adults and more so,
increase their capital accumulation ability through the financial system
intermediate function.
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Pages:83-88
How to cite this article:
Eugene Eduo Okpe, Ugochukwu Henry Agbarakwe "Financial inclusion, monetary policy and economic growth in Nigeria". International Journal of Multidisciplinary Research and Development, Vol 11, Issue 1, 2024, Pages 83-88
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