Analysis of the Impact of Financial Inclusion on Poverty Reduction in Minna Niger State - Nigeria

Abstract

Undoubtedly, financial inclusion has been considered as one of the ways of reducing poverty because it favours mainly low-income groups by bringing a lot of welfare benefits to them through the basic services offered by financial institutions such as mobilization of savings, risk reduction, monitoring and advise, cost mitigation, reduction of information asymmetry, and allocation of funds to the most competent entrepreneurs to promote technological innovation and hence economic development. The study investigated the impact of Financial Inclusive on poverty reduction in Minna using logistics regression and the result revealed that formal ownership of the account, Financial adviser, teller point, and access to formal credit lead to an improvement in the welfare of people and statistically significant. Therefore, the study concludes that formal ownership of the account, financial adviser, teller point, and access to credit will help in the reduction of poverty in Minna Metropolis. Thus, recommend fiscal regulation, installation of teller or ATM point in strategic places in both the rural and urban area, the establishment of customer advisory unit or department in commercial banks, and checkmate of the commercial bank’s loan procedure by Central Bank of Nigeria.