EFFECT OF FINANCIAL INCLUSION ON ECONOMIC GROWTH IN NIGERIA

This study examined the effect of financial inclusion in terms of the number of commercial bank branches in Nigeria, credit to private sector, demand deposit from rural areas, loans to rural areas and commercial bank liquidity ratio on economic growth provided by gross domestic product in Nigeria. Ex-post facto research design was used for the study. Regression analysis was used on time series data collected from Central Bank of Nigeria (CBN) Statistical Bulletin for the period spanning 1996 through 2017 and found out that, the number of commercial bank branches in Nigeria positively relates to economic growth of the countiy with statistical significance. It was also found that, credit to private sector in Nigeria has a significant positive effect on economic growth. However, an insignificant positive effect of demand deposits from rural areas on the economic growth was found. The study recommended among others that CBN should bring to the fore a policy that will encourage the opening of bank branches of Deposit money banks in the rural areas especially in all local governments, and in cities and towns of Nigeria as well as making the process of accessing loans by rural dwellers, the small, micro and medium enterprises less cumbersome and difficult