Speaker
Description
Kime, M. M.
Umar Ibn Ibrahim El-Kanemi College of Education Science and Technology Bama Borno State. University of Maiduguri Affiliate
kimemustapha@gmail.com
Track: Inclusion, Equity and Digital Access
Dr. Mustapha M. Kime
Umar Ibn Ibrahim El-Kanemi College of Education Science & Technology Bama Borno State
kimemustapha@gmail.com
Abstract
This study examines the impact of financial inclusion and digital financial innovation on economic growth in Nigeria. Anchored on endogenous growth theory and the finance-growth nexus, the paper measures financial inclusion using private sector credit and physical bank density, while digital innovation is provided by mobile money, POS, and ATM transaction channels. Using the Autoregressive Distributed Lag (ARDL) bounds test, the result reveals a long-run cointegrating relationship among the variables in the long run, both improved financial access and digital banking channels have a significant positive effect on Real GDP. However, short-run error correction estimate shows that the initial rollout of fintech solutions create adjustments cost and structural bottleneck, producing temporary negative growth effects before their full benefits materialize.The significant negative error correction term confirms that the deviation from long run equilibrium are corrected rapidly.Therefore, the study recommends a targeted policy action to address infrastructural gaps, modernise regulatory frameworks and reduce demographic desperities in access to finance.
Keywords: Fintech Innovation, Financial Inclusion, Economic Growth, ARDL