REVISITING THE FINANCIAL LITERACY – FINANCIAL INCLUSION NEXUS: WHYARE MANY STILL FINANCIALLY EXCLUDED IN NIGERIA?


STEPHEN I. Ukenna1
Department of Research and Development
Standpoint Consulting Ltd
Temples Building, Udoka, Awka, Anambra, Nigeria.
Email: stephenukenna@gmail.com
ORCID: https://orcid.org/0000-0002-7954-5710


EDWIN Chukwuemeka Idoko2

Department of Marketing
University of Nigeria, Enugu Campus
Enugu, Nigeria.
Email: edwin.idoko@unn.edu.ng
ORCID: https://orcid.org/0000-0001-6549-0280


CHIOMA C. Amaefule3
Department of Finance and Accounting
University of Leicester,
University Rd, Leicester LE1 7RH, United Kingdom
Email: amaefulecc@yahoo.co.uk
ORCID: https://orcid.org/0009-0001-4588-671X

IFEANYI Uzoma Onyemere4
School of Business & Leadership
Regent University, Virginia Beach, Virginia, USA
ifeaony@mail.regent.edu
ORCID: https://orcid.org/0009-0004-3634-7249
**Corresponding author (08034144740)
Conflict of Interest: On behalf of all authors, the corresponding author states that there is no conflict
of interest

ABSTRACT
Recognizing financial literacy as key driver of financial inclusion, this study deconstructs financial
literacy into three components (financial knowledge, educational level, and financial advice) to
uncover financial literacy antecedents that best drives financial inclusion. Based on documented
dataset of 28,380 adult population (18+) of bankable age from Nigeria, standard Multiple Regression
Analysis (MRA) was used to analyze the hypothesized relationships. The study finds that educational
level is a significant predictor of financial inclusion; while financial knowledge and financial advice
are not significant predictors of financial inclusion. The deconstruction of financial literacy in the
Financial Literacy Theory that financial literacy implies different thing in different context and
financial literacy is strongly associated with educational level in the developing African context.
Policymakers are to find specific ways to stimulate increased financial literacy by incorporating
basic financial education as critical component in the educational curriculum at all educational
levels. Other implications are discussed.
Keywords: Financial literacy; financial inclusion; financial exclusion, Nigeria, Africa.

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