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Comparative analysis of financial inclusion in Nigeria, sub-Saharan Africa and the World

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  • Ozili, Peterson K

Abstract

Using six widely accepted indicators, this study compares the progress made in financial inclusion in Nigeria, Sub-Saharan Africa and the rest of the World, with a view to deducing lessons that each entity can improve upon. We find that Nigeria outperformed sub-Saharan Africa in three indicators of financial inclusion while sub-Saharan Africa did better than Nigeria in one metric. Nigeria and sub-Saharan Africa exceeded the World average in informal borrowings. We also constructed an index of financial inclusion and found that financial institution account ownership, formal borrowing, informal borrowing and debit or card ownership are significant positive determinants of the financial inclusion index. These findings indicate that policymakers in Nigeria and sub-Saharan Africa have significant room for improving their financial inclusion standings towards the global average. We make recommendations on the aspects where policymakers can place their focus in pursuit of this goal.

Suggested Citation

  • Ozili, Peterson K, 2024. "Comparative analysis of financial inclusion in Nigeria, sub-Saharan Africa and the World," MPRA Paper 121527, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:121527
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    References listed on IDEAS

    as
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    6. Banna, Hasanul & Mia, Md Aslam & Nourani, Mohammad & Yarovaya, Larisa, 2022. "Fintech-based Financial Inclusion and Risk-taking of Microfinance Institutions (MFIs): Evidence from Sub-Saharan Africa," Finance Research Letters, Elsevier, vol. 45(C).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial inclusion; Nigeria; Sub-Saharan Africa; digital financial inclusion;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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