Dr. Suka L.C. Adamgbo1, Dr. Samuel Dibiah2, Dr. Edeh, B. M.3
1,3Department of Finance
Faculty of Administration and Management
Rivers State University, Nkpolu-Oroworukwo Port Harcourt
adamgbo.suka@ust.edu.ng
2Department of Banking and Finance
Captain Elechi-Amadi Polytechnic
Rumuola, Port Harcourt
Samuel.dibiah@portharcourtpoly.edu.ng
Abstract
This study examines the effects of digital financial innovations on financial deepening and real growth in Nigeria. There have been measures aimed at enhancing financial inclusion via financial deepening. The data explored in the study spanned between the period 2009 to 2022 obtained from CBN bulletin, Annual economic report and the World Bank report. The study adopts the Auto regression models. The ARDL is considered appropriate in the study giving that the time series data utilized exhibits different cointegration order. The bounds cointegration test was also conducted for evidence of long-run equilibrium relationship among the studies variables. Post-estimation (diagnostics) was conducted to confirm the validity, reliability etc. of the models. Findings suggests that digital financial innovations affect financial deepening and real growth in Nigeria in both short and long run with varying degrees of impacts, greater positive and significant impact was found to come from ATM and POS on broad money supply, credit to Private Sector, Deposit to ratio, loan to deposit ratio and RGDP. The study therefore, proposed among others the need for both banks and the CBN to re-strategize and aggressively invest in digital finance as it enhances financial inclusion and narrow financial exclusion.
Keywords: Digital finance, financial inclusion, exclusion deepening, innovations, digital financial service providers, real growth etc.