Indonesian Journal of Islamic Economics Research, 2(2), 2020, 70-84 Indonesian Journal of Islamic Economics Research Available at http://e-journal.iainsalatiga.ac.id/index.php/ijier Advancing inclusive growth in Nigeria: the role of financial inclusion in poverty, inequality, household expenditure, and unemployment Musa Abdullahi Sakanko 1 *, Joseph David 2 , and Aliyu Musari Onimisi 3 1 Economics Department, University of Jos, Nigeria 2 Economics Department, Ibrahim Badamasi Babangida University, Lapai, Nigeria 3 Economics Department, Waziri Umaru Federal Polytechnic Brinin Kebbi, Kebbi State, Negeria ARTICLE INFO ABSTRACT Article history: Received 4-April-20 Revised 25-Sept-20 Accepted 29-Sept-20 Keywords: Inclusive Growth; Financial Inclusion; Inequality; Poverty; Unemployment This study employs ARDL bounds testing technique to examine the effect of financial inclusion on inclusive growth in Nigeria, using quarterly data from 2007-2018. The empirical evidence reveals the presence of cointegration between financial inclusion indicators (account ownership, access to bank, ATM and credit, loans to SMEs and internet usage) and inclusive growth (poverty, household expenditure, employment, and per capita income). The results demonstrate that, while increase in account ownership, and access to bank and ATM raise poverty, and access to credit, loans to SMEs and internet usage reduces employment and per capita income in the long-run, it was also discovered that access to credit reduce poverty and increase household consumption, while account ownership and access to bank increases employment and per capita income in the long-run. In the short-run: lag of account ownership, access to ATM and credit, loan to SMEs and internet usage reduces poverty; lag of household expenditure, account ownership, and access to ATM and lag of internet usage increases household expenditure; lags of access to ATM and lags of internet usage (and account ownership and access to the bank) increases employment opportunities (and per capita income), and access to ATM and credit reduces employment and per capita income respectively. **** Memajukan pertumbuhan inklusif di Nigeria: peran inklusi keuangan dalam kemiskinan, ketidaksetaraan, pengeluaran rumah tangga, dan pengangguran. Penelitian ini menggunakan teknik ARDL bounds untuk menguji pengaruh inklusi keuangan terhadap pertumbuhan inklusif di Nigeria, dengan menggunakan data triwulanan 2007-2018. Bukti empiris menunjukkan adanya kointegrasi antara indikator keuangan inklusif (kepemilikan rekening, akses ke bank, ATM dan kredit, pinjaman kepada UKM dan penggunaan internet) dan pertumbuhan inklusif (kemiskinan, pengeluaran rumah tangga, lapangan kerja, dan pendapatan per kapita). Hasilnya menunjukkan bahwa, meskipun peningkatan kepemilikan rekening, dan akses ke bank dan ATM meningkatkan kemiskinan, serta akses ke kredit, pinjaman kepada UKM, dan penggunaan internet mengurangi lapangan kerja dan pendapatan per kapita dalam jangka panjang, ditemukan juga bahwa Akses kredit mengurangi kemiskinan dan meningkatkan konsumsi rumah tangga, sementara kepemilikan rekening dan akses ke bank meningkatkan lapangan kerja dan pendapatan per kapita dalam jangka panjang. Dalam jangka pendek; kelambanan kepemilikan rekening, akses ke ATM dan kredit, pinjaman untuk UKM dan penggunaan internet mengurangi kemiskinan; keterlambatan pengeluaran rumah tangga, kepemilikan rekening, dan akses ke ATM dan keterlambatan penggunaan internet meningkatkan pengeluaran rumah tangga; kelambanan akses ke ATM dan kelambanan penggunaan internet (dan kepemilikan rekening dan akses ke bank) meningkatkan kesempatan kerja (dan pendapatan per kapita), dan akses ke ATM dan kredit masing-masing mengurangi lapangan kerja dan pendapatan per kapita. How to cite: Sakanko, M., David, J., & Onimisi, A. (2020). Advancing inclusive growth in Nigeria: The role of financial inclusion in poverty, inequality, household expenditure, and unemployment. Indonesian Journal of Islamic Economics Research, 2(2), 70-84. doi:https://doi.org/10.18326/ijier.v2i2.3914 * Corresponding Author. sakanko2015@gmail.com