Financial System, Financial Inclusion and Economic development in Nigeria

The possibility exists that a financial system may leave out the less-privileged in benefiting from the synergy created by the bridging of the financial gap between providers and users of finance in an economy. The importance of financial systems and by extension, financial inclusion to economic growth has become even more pronounced in recent years because the development of a financial system is determined by the extent to which it improves access to financial services for poorer sections of the population. It is against this backdrop that the research has been carried out, using empirical data, to study the link between financial system, financial inclusion and economic development in Nigeria. Correlation and regression analyses were applied to explore relationships among study variables. The research found out that financial inclusion has a positive impact on economic development. It is the recommendation of this research that more financial institutions should be established in rural areas. Financial products that address the peculiarities of the financially disadvantaged should also be introduced in order to further reach the unbanked public. The study also makes a case for financial inclusion as an important corporate social responsibility and sustainable development perspective that financial institutions should embrace.