FINANCIAL INCLUSION AND UNEMPLOYMENT RATE IN NIGERIA

Abstract

This study examined the effect of financial inclusion on unemployment rate in Nigeria from 1986 to 2019 using secondary data sourced from CBN statistical bulletin and Index Mundi.  Commercial banks’ loans and advances (CBLA) to rural communities and Microfinance banks’ loans and advances (MFBLA) to rural communities were used to proxy financial inclusion while unemployment rate. The hypothesis was tested using Ordinary Least Square Method. The findings revealed that Microfinance banks’ loans and Advances have significant relationship with GDP per Capital Income and Human Development Index, but insignificant relationship with unemployment rate, while CBLA is negatively relates with unemployment rate. The study concludes that MFBLA has increased the standard of living of the rural dwellers more than CBLA except in the case of employment. The study recommends that MFBLA should be direct to entrepreneurial development other than commercial activities. This study recommended that MFB needs to be empowered for more expansion which will create more employment opportunities for the rural dwellers.