The Role of Financial Inclusion in Saving Mobilization in Nigeria

In Nigeria, the high cost of fund, increasing loan delinquency and low education and knowledge of the unbanked public of the functioning financial institutions present serious obstacles for financial inclusion and savings mobilization. We investigate the effect of financial inclusion on savings mobilization in Nigeria. Annual time series data sourced from the Central Bank of Nigeria Statistical Bulletin and national Bureau of Statistics covering the period of 1993 to 2016 on the multiple regression model was analysed using the Dynamic Least Squares (DOLS) econometric technique. It was found that credit to private sector exerts a significant negative effect on savings mobilization in Nigeria. The result also shows that financial deepening exerts a significant positive effect on savings mobilization in Nigeria while the number of commercial banks in rural area does not show any effect on savings mobilization in Nigeria. The study recommended the need to introduce a continuous weekly, monthly or yearly financial literacy training programme across all the local government councils in Nigeria to allow everyone to participate at the own convenient time.