Impact of Financial Innovation on Sustainable Development in Nigeria
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The study evaluated the impact of financial innovation on sustainable development in Nigeria. Relying on annual time series data from the World Bank Development Indicator covering 1990 to 2021. The ARDL approach and the Vector error correction model were adopted in analyzing the data collected. Findings indicated a long-run and short-run association between financial innovation and sustainable development in Nigeria. The findings further revealed that both in the long and short run financial innovations in the financial sector positively and significantly impacted sustainable development, on the other hand, financial innovations in the monetary sector and per capita income both exerted a negative impact on sustainable development in Nigeria. Based on the findings from the study, it is recommended that more aggressive financial education using social media and radio be used to improve financial inclusion. Central Bank of Nigeria should work with financial service providers to ensure that loans are available at reasonable and flexible interest rates to support underprivileged individuals and vulnerable businesses. The operating environment of the financial service providers needs to be improved by providing basic infrastructures such as electricity, to reduce the cost of lending.
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