192 Int. J. Financial Innovation in Banking, Vol. 3, No. 3, 2025
Copyright © 2025 Inderscience Enterprises Ltd.
Financial inclusion, e-payments and economic
growth in Nigeria
Olajide Oyadeyi
Economic Policy and Small States – The Commonwealth,
Marlborough House, Pall Mall,
St. James’s, SW1Y 5HX, London, UK
Email: jide.oyadeyi@gmail.com
Abstract: The paper examined the impacts of financial inclusion and
e-payments on economic growth in Nigeria using quarterly data from 2009Q1
to 2021Q4. The paper contributes to the ongoing debate by establishing the
growth-inducing e-payment channels and how the drive toward financial
inclusion has affected the economy of Nigeria. The paper adopted the
principal component analysis, the autoregressive distributed lag, and the
Granger-causality techniques to achieve the results. The results showed that
financial inclusion and e-payments (except for cheque payments) had a
significant long and short-run impact on economic growth. Furthermore, the
findings showed that POS payments had the most significant effect on
economic growth in Nigeria. This was followed by ATM payments, mobile
payments, and web payments respectively. In addition, the results showed that
causality runs from real GDP to ATM, and the paper recommends that the
monetary authorities should support the development and expansion of
financial inclusion and e-payments by providing meaningful institutional
changes to support the healthy growth of financial inclusion and e-payments in
Nigeria.
Keywords: financial inclusion; electronic payments; economic growth; ATM
payments; POS payments; web payments; cheque payments; mobile payments;
Nigeria.
Reference to this paper should be made as follows: Oyadeyi, O. (2025)
‘Financial inclusion, e-payments and economic growth in Nigeria’,
Int. J. Financial Innovation in Banking, Vol. 3, No. 3, pp.192–214.
Biographical notes: Olajide Oyadeyi is a professional economist and currently
working as a researcher at the Commonwealth Secretariat. He received his PhD
from the Obafemi Awolowo University and works mainly in the areas of
macroeconomics, monetary economics, international economics, financial
economics, and development economics. He has published several articles on
topics such as financial development, monetary transmission mechanisms,
monetary policies, the current account, banking, capital market, exchange rate,
interest rates, the economics of crime, etc. His current research includes
analysing the impact of e-payments and financial inclusion on the economy of
Nigeria, and their wider implications for the financial and banking industry.