Nexus between Internet Penetration and Financial Inclusion in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue X, October 2018 | ISSN 2454–6186

Nexus between Internet Penetration and Financial Inclusion in Nigeria

Michael Chukwunaekwu Nwafor

 Department of Accounting and Finance, Godfrey Okoye University, Enugu, Nigeria.

Abstract: This study examined the relationship between internet penetration and financial inclusion in Nigeria. Frequencies, percentages and tables were used to present data while obtained data was tested for empirical evidence using Two-staged regression analysis in E-views 10. Findings revealed that internet penetration has significant impact on financial inclusion in Nigeria within the period under review. It was recommended that there is need for the adoption of highly internet based transactional policies that will ensure that the financially excluded is reached easily.

Keywords: Internet penetration; Financial inclusion;Fintech


The tremendous influence exerted by the World Wide Web (www) or the internet on personal and firm financing has become a major topic of discuss throughout the globe. Over the years, internet-based technologies, such as mobile payments, social networks, search engines and cloud computation, have plunged the financial sector into a higher dimension. Internet finance has been rendering earth-shaking changes in our daily living and economic activities, among which changes in individual or firm financing are far-reaching in terms of financial development. It is also very obvious that access to the Internet on its own has made a huge difference on individual and corporate access to finance. The use of digital devices such as internet enabled mobile smartphones for the provision of financial services has become the new way of availing the unbanked population more opportunities of partaking in the formal financial system. Mobile money services have increased the access of financial products and services to rural people at a reasonable cost (Thulani et al, 2014).The Internet can perform well in terms of convenience, transactional efficiency, choice, and access to competitive prices and returns and can also be accessed from anywhere, be it at home or office. It allows greater access to service providers than can be found in the high street or over the telephone.

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