Effect of Mobile Money Services on Financial Inclusion in Nigeria’s Rural Areas

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Effect of Mobile Money Services on Financial Inclusion in Nigeria’s Rural Areas

Ojeh, Augustine PhD FCA1, Onah, Kelvin Amobi PhD2, Okonkwo, Bonaventure S. PhD3 & Festus Ndubuisi Nkwo4

Abstract

This study examined the effect of mobile money services on financial inclusion in rural areas of Nigeria, focusing on 343 rural traders across five local government areas in Oyo State. Data were collected through structured questionnaires and analyzed using descriptive statistics, including means and standard deviations. The demographic profile showed a nearly even gender distribution, predominance of respondents aged 26 to 35 years, and a range of educational levels, with secondary education being most common. Findings revealed that 29.7% of respondents use mobile money daily, while 25.9% use it weekly, indicating substantial adoption. Key services accessed include money transfers and cash withdrawals. The analysis indicated strong agreement that mobile money services have improved access to financial services (mean = 3.52), with socio-economic factors such as education and income significantly influencing adoption (mean = 3.56). However, infrastructural and operational challenges such as poor network coverage, unreliable electricity, transaction fees, and security concerns were identified as significant barriers limiting service effectiveness (mean scores above 3.5). Although awareness and financial literacy were considered adequate, they scored the lowest (mean = 3.27), suggesting room for improvement. Hypothesis testing using decision rules based on mean scores (≥ 3.0) and standard deviations (≤ 1.25) indicated that mobile money services significantly improve access to financial services, socio-economic factors influence usage, and infrastructure/operational challenges limit effectiveness in rural Nigeria. The study concludes that while mobile money services enhance financial inclusion among rural populations, addressing infrastructural deficits and improving user education are critical for maximizing their impact.

Keywords: Mobile Money Services; Financial Inclusion; Rural Communities; Digital Finance; Nigeria

IJAFIS 6(3)1-12Download

Cite as:
Ojeh, A., Onah, K. A., Okonkwo, B. S., & Nkwo, F. N. (2025). Effect of Mobile Money Services on Financial Inclusion in Nigeria’s Rural Areas. International Journal of Accounting, Finance, and Investment Strategies, 6(3), 1-12. https://doi.org/10.5281/zenodo.17113614

© 2025 The Author(s). International Journal of Accounting, Finance, and Investment Strategies published by ACADEMIC INK REVIEW.

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