This study investigated the impact of financial inclusion on economic growth and macroeconomic
stability in Nigeria (1980 – 2022). Using secondary data obtained from the Central Bank of Nigeria
(CBN) Statistical Bulletin (various years) and World Development Indicators (WDI, 2023), the study
employed the Autoregressive Distributed Lag (ARDL) technique in analysing the data. It was found
that financial inclusion may not necessarily improve economic growth in the short run; it may not
provide macroeconomic stability in the short run; financial inclusion enhances the growth of the
economy in the long run, but the growth rate is slow; and financial inclusion can stabilise the
macroeconomy (price level) in the long run. It was recommended, amongst other things, that a robust,
stable and sustainable financial system be developed to deepen financial inclusion (like expanding
credit and money supply, amongst other things) to encourage economic growth and stabilise the
economy.
Authors
Godwin Essang Esu
Inigbehe Michael Okon
Ededet Bassey Eduno
Department of Economics
Akwa Ibom State University
Obio Akpa Campus, Akwa Ibom State, Nigeria
