FINANCIAL INCLUSION TECHNOLOGY AND POVERTY REDUCTION IN NIGERIA

Abstract

This study investigates the impact of financial inclusion technologies—namely ATMs, POS
systems, and mobile payments—on poverty alleviation in Nigeria. Using trend analysis and
error correction econometric methods, the research evaluates how these technologies
contribute to reducing poverty levels across different regions and demographics in the
country. The findings reveal that ATMs and mobile payment systems significantly reduce
poverty, primarily by enhancing access to financial services, promoting economic
participation, and providing financial stability to low-income individuals. In contrast, POS
systems do not exhibit a strong reductive effect on poverty, likely due to limited accessibility
in rural areas and among the unbanked population. The study also highlights the positive
role of financial deepening in poverty reduction, emphasizing the importance of expanding
access to a wide range of financial services. The implications suggest that targeted
investments in financial infrastructure, regulatory support, and financial literacy initiatives
are essential to maximizing the poverty-alleviating potential of these technologies. The
research concludes that a comprehensive approach to financial inclusion and deepening,
tailored to the needs of underserved populations, is crucial for achieving sustainable
poverty reduction and fostering inclusive economic growth in Nigeria.