FINANCIAL INCLUSION STRATEGIES AND POVERTY REDUCTION DURING INFLATION: AN EMPIRICAL ASSESSMENT

Abstract

This study is on financial inclusion strategies and poverty reduction during inflation: An empirical assessment. The specific objectives of the study are to: determine the effect of inflation rate, poverty rate and unemployment rate on economic growth in Nigeria. The study was theoretically anchored on Human Capital Theory. The study adopted an ex post facto research design, relying on published data sourced from the Central Bank of Nigeria (CBN) statistical bulletin. Regression analysis was employed to analyze the data. The formulated hypotheses were tested using ordinary Least Square (OLS) Regression method. The results which depicts that inflation rate, poverty rate, and unemployment rate each exert a significant negative effect on economic growth. The p-values for inflation, poverty, and unemployment were 0.0418, 0.0236, and 0.0383, respectively, all falling below the conventional significance level of 0.05, with corresponding t-statistics of -2.5785, -1.0753, and -2.3348, underscoring the statistical significance of these negative relationships. These findings underscore the urgency of addressing these socio-economic challenges for sustainable economic growth in Nigeria. The implications of these findings are profound. The negative impact of inflation, poverty, and unemployment on economic growth necessitates immediate attention and intervention. Failing to address these issues could hinder Nigeria's economic development and stability. In conclusion, this research demonstrates that inflation, poverty, and unemployment are detrimental to economic growth in Nigeria. To ensure sustainable economic development, it is imperative for policymakers to focus on controlling inflation, alleviating poverty, and creating employment opportunities.  In light of the research findings, the following recommendations are proposed: government should implement effective monetary and fiscal policies to manage inflation and stabilize the economy. Targeted poverty reduction programs should be devised to uplift marginalized populations and reduce poverty levels. Policies aimed at generating job opportunities and enhancing workforce skills should be executed to reduce unemployment rates and facilitate economic growth. Regular monitoring and evaluation of the effectiveness of these policies are essential to ensure their success and to make necessary adjustments as required. Addressing these challenges is essential for Nigeria to create a more conducive economic environment, promoting sustainable growth and development."