Challenges Hindering The Uptake Of Digital Financial Services Among Marginalized Populations In Nigeria: Insights From Institutional And Socioeconomic Determinants
Abdulwahabi A. Adekunle
Sustainable Development Centre., University of Abuja
Sule Magaji
Department of Economics, University of Abuja
Kabiru Muhammed
Economics and Development Studies, Federal University of Kashere, Gombe State
Keywords: Digital Financial Services, Financial Inclusion, Marginalized Groups, Institutional Factors
Abstract
This study investigates the Challenges to the adoption of digital financial services among marginalized groups in Abuja, Nigeria, with a focus on institutional and socioeconomic factors. Using a mixed-methods approach, quantitative data were collected through structured questionnaires administered to 385 households, complemented by qualitative insights from key informant interviews with policymakers, financial service providers, and community leaders. Descriptive statistics and logistic regression techniques were employed to analyse the determinants of digital finance adoption, access to financial services, employment outcomes, and financial exclusion. The findings reveal that digital financial services significantly enhance financial inclusion and employment prospects among vulnerable households. However, adoption is constrained by limited digital literacy, inadequate digital infrastructure, low income levels, weak institutional trust, and unfavourable regulatory perceptions. While access to internet and mobile networks is relatively widespread, disparities in education, trust, and vulnerability status continue to deepen financial exclusion. The study further shows that regulatory barriers and macroeconomic pressures, such as inflation, exacerbate exclusion risks despite increased digital finance usage. Overall, the results suggest that digital finance is a critical but insufficient tool for addressing financial exclusion without supportive institutional frameworks and socioeconomic interventions. The study concludes that an integrated policy approach combining digital infrastructure development, financial and digital literacy programmes, consumer protection, and targeted poverty alleviation strategies is essential for achieving inclusive and sustainable financial development in Nigeria.