Effect of Financial Inclusion on Economic Empowerment of Women in the Federal Capital Territory of Nigeria

Abstract

The research investigates the influence of financial inclusion on the economic empowerment of women in the Federal Capital Territory (FCT) of Nigeria. Primary data obtained through structured questionnaire, formed the basis of the study. Three hundred and eighty-four (384) copies of questionnaire were generated and distributed among the participants, employing a Stratified sampling technique. The study utilized Ordinary Least Squares (OLS) as the analytical technique to assess the data, aligning with the specific objectives. The study's outcomes unveiled that key dimensions and proxies to financial inclusion, namely Access to Macro-Finance Bank (AMFB), Access to Point of Sales (APOS), Ownership of a Mobile Payment Service (ONMPS), and Access to other Financial Institutions (ACFI) significantly (p < 0.05) and positively impact women's economic empowerment. Specifically, a unit increase in women's access to Microfinance Banks (MFBs) resulted in a notable 0.43-unit expansion of women's empowerment and income. Likewise, a unit increase in access to Point of Sales (POS) correlated with 0.34 unit rise in women's economic empowerment and subsequent income enhancement. Ownership of a mobile payment service exhibited a remarkable 0.58-unit improvement in women's economic empowerment and income for every 1-unit increase. Additionally, regarding the nexus between access to MFBs and income, the study found that women's empowerment would expand by 0.40 units with a unit increase in access to MFBs. The study advocates for prioritizing women's economic empowerment by the government and relevant authorities, considering it a pivotal strategy to reinforce financial inclusion and foster inclusive economic growth.

Keywords: Macro-Finance, Point of Sales, Mobile Payment Service, Financial Institutions, empowerment, financial inclusion