SOCIO-ECONOMIC DETERMINANTS OF DIGITAL FINANCIAL INCLUSION IN NIGERIA

Abstract

  This study provides a contemporary assessment of the socio-economic determinants of Digital Financial Inclusion (DFI) using the most recent Global Findex 2025 microdata. A comprehensive Digital Financial Inclusion Index was constructed to capture multidimensional engagement with the digital financial ecosystem, including digitally enabled accounts, mobile money usage, digital payments, and digital savings or borrowing. Logistic regression was applied to examine how demographic, economic, and behavioral characteristics shape the likelihood of digital financial inclusion. The results reveal that education, higher income, urban residence, borrowing behavior, saving behavior, and ownership of a financial institution account are strong positive and significant determinants of DFI. Conversely, age exerts a negative and significant effect, indicating lower digital participation among older adults, while individuals outside the workforce show reduced likelihood of digital inclusion. Gender disparities persist, with males significantly more likely than females to be digitally included. The strongest predictor is ownership of a formal financial account, which increases the odds of digital inclusion nearly sevenfold, underscoring its role as the primary gateway into the digital financial ecosystem. The study concludes that digital financial inclusion in Nigeria is shaped by intersecting socio-economic and structural factors, and strengthening it requires addressing foundational barriers in digital literacy, consumer trust, and infrastructure. Targeted policies focusing on women, older adults, rural populations, and low-income groups—alongside improved digital infrastructure and consumer protection are essential for translating digital access into meaningful financial inclusion.