Digital Finance Impacts On Poverty, Financial Exclusion, Income, Employment, And Access Among Vulnerable Groups In Nigeria
Sule Magaji
Department of Economics, University of Abuja
Abdulwahabi A. Adekunle
Sustainable Development Centre., University of Abuja
Ibrahim Musa
Department of Economics, University of Abuja
Keywords: Digital Finance, Poverty Reduction, Financial Exclusion, Vulnerable Groups, Financial Inclusion
Abstract
This study examines the impact of digital finance on poverty reduction, financial exclusion, income generation, employment, and access to financial services among vulnerable groups in Abuja, Nigeria. Employing a mixed-methods research design, primary data were collected from 385 households through structured questionnaires, complemented by qualitative interviews with policymakers, financial service providers, and community leaders. Descriptive statistics and logistic regression analyses were used to explore the determinants of digital finance adoption, barriers to usage, and associated socio-economic outcomes. The findings indicate that digital literacy, access to infrastructure, education, and trust in financial institutions significantly increase the likelihood of adopting digital financial services, which in turn improves employment opportunities, income, and access to financial services. Conversely, regulatory constraints, low trust, high perceived costs, and structural inequalities hinder adoption and exacerbate financial exclusion, particularly among low-income households, women, youth, and informal-sector workers. The study underscores the multidimensional nature of financial inclusion and highlights that digital finance alone is insufficient to eradicate poverty without complementary interventions such as digital literacy programs, infrastructure development, and targeted support for vulnerable populations. The results provide empirical evidence for policymakers and financial institutions seeking to design inclusive digital finance strategies that promote equitable socio-economic development in Nigeria.