The Relationship Between Financial Inclusion and Health Outcomes: Evidence from Nigeria

By: Onwuka Cletus Offor, Aniebo Chibueze, Blessing Udenta

Pages: 375–385, Volume: 2, Number: 2

Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 9/1/2025, 2025

ISSN (Electronic): 2536-6742

DOI: 10.48028/iiprds/aefunaijefds.v2.i2.20

The Relationship Between Financial Inclusion and Health Outcomes: Evidence from Nigeria

Abstract:

This study takes up a core aspect of development – health outcome – and examines the nature and extent of the contribution of financial inclusion to this aspect of development in Nigeria. Financial inclusion, which is about participation in economic activities and empowerment for all, promotes the capacity to effectively deploy and utilize life support facilities, thereby yielding positive health outcome and leading to true development. It remains unclear if financial inclusion ultimately yields this much expected developmental goal in Nigeria, hence the study. A specific health outcome was chosen – life expectancy – which is an indicator of how well an organism utilizes its present circumstances and opportunities to facilitate life on earth. On the basis of availability, time series data from 1989 through 2023 were chosen and analyzed using Autoregressive Distributed Lag modeling. It was found that a positive relationship exists between improvements in life expectancy and financial inclusion. Impediments to financial inclusion were thus identified as obstacle to improved health outcomes. It was therefore recommended, among others, that non-bank financial solutions which have already gained acceptability in the country should be expanded and mainstreamed.

Keywords: Financial inclusion, Health outcomes, Healthcare financing, Poverty reduction, Nigeria