The Relative Impact of Income and Financial Literacy on Financial Inclusion in Nigeria

This study uses survey data of over 22 000 respondents in Nigeria, to provide evidence for the impact of two key drivers of financial inclusion: financial literacy and income levels. The study shows that financial literacy significantly determines savings patterns with formal and informal financial institutions; however, income only drives the frequency of informal savings. The results also highlight the demographic groups suitable for financial literacy and other interventions aimed at improving financial access. The findings will support the market segmentation capabilities of financial services providers and also guide regulators in formulating policies that will improve and deepen financial access. © 2019 John Wiley & Sons, Ltd.