Nigerian Journal of Banking and Financial Issues (NJBFI)

LEVERAGING DIGITAL FINANCIAL INCLUSION FOR EMPLOYMENT CREATION IN NIGERIA: RETHINKING GROWTH STRATEGIES FOR INCLUSIVE DEVELOPMENT

Abstract

Nigeria continues to experience economic growth without corresponding job creation, threatening equitable development. This study investigates the role of digital financial inclusion in addressing this challenge by examining digital financial infrastructure (DFI), fintech-enabled credit availability (ACFTE), and corporate social responsibility (CSRDFI) in digital finance as drivers of employment growth. Using secondary data from the Enhancing Financial Innovation & Access database (EFInA) and the Central Bank of Nigeria Statistical Bulletin from 2015 to 2024, the study applies descriptive statistics and least squares regression. The findings reveal that digital financial inclusion significantly impacts employment size. DFI is the most influential factor, with a coefficient of 10.90 (t-statistic = 5.89, p = 0.0000), followed by ACFTE with a coefficient of 0.49 (t-statistic = 1.09, p = 0.0094). CSRDFI also positively affects employment size, with a coefficient of 0.16 (t-statistic = 0.93, p = 0.0161). The R-squared value is 0.73, indicating that the model explains 73% of the variation in employment size. The study concludes that integrating digital financial inclusion into national economic strategies can reduce job instability and promote sustainable growth. It recommends stronger corporate involvement, regulatory flexibility, and infrastructural investment to maximize employment benefits from digital finance.