May 16, 2023
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ISSN – PRINT:2756-4495 | ONLINE: 2756-4487

Volume 02, Issue 03 – 2022

Financial Inclusion and Commercial Banks' Profitability in Nigeria

Silva Opuala-Charles,
Dibia Kelechi Elizabeth


Globally, the concept of financial inclusion has attracted considerable research and policy interest. However, its effect on profitability of Nigerian commercial banks has not been extensively researched. This study investigated the relationship between financial inclusion and profit levels of Commercial Banks in Nigeria. Financial Inclusion was conceptualized by four independent variables namely; number of ATM Machines, number of Bank Branches, Number of Agents Banking Deployed (POS), and Number of Accounts Opened. Inflation rate and cost of funds were used as control variables. Secondary time series data was used and data was sourced from CBN 2021 Statistical Bulletin, WDI 2021, and World Bank Global Financial Development Database for a period of 2010 to 2020. The major analytical procedures adopted were the unit root analysis, cointegration, and the regression analysis. The results showed that the number of accounts per one thousand adults, and branches per hundred thousand adults a bank exerts a positive influence on a bank’s profitability. Hence, the study recommended among others that more measures be taken to address financial exclusion of low-income groups from financial services.

Keywords:  Financial Inclusion; Bank Profitability Models; Agents Banking; Inflation Rate; Cost of Funds.

ORCID ID: 0000-0003-1591-1141



Volume 01, Issue 02

Volume 01, Issue 01