Abstract

Identifying factors that determine access to financial services is key in ascertaining proper policy initiatives to attain financial inclusion. Thus, much literature has emerged on the determinants of financial inclusion around the World. However, various definitions of financial inclusion are offered by institutions, and agencies, such as “access to financial services”, “responsible and sustainable provision of financial services”, “affordable delivery to disadvantaged and low-income segments of society,” and many others. For instance, the 2014 Global Financial Development Report (GFDR) by the World Bank defined financial inclusion as the share of the population who use financial services. Hence, this study uses this definition to examine the determinants of financial inclusion and the role of Islamic finance in Nigeria. Consequently, as global interest in the attainment of financial inclusion is rapidly broadening and taking economic centre stage, The study employed both qualitative and quantitative methods and used both primary and secondary data. Statistical analysis was employed using STATA to examine the determinants of financial inclusion Findings of the study suggested that Islamic finance has a positive relationship with financial inclusion, which was noted through both qualitative and quantitative analysis. The empirical investigations conducted in the study revealed that the determinants of financial inclusion (gender, age, income and educational attainment) influence financial inclusion. This means the greater the age, income, and educational attainment alongside being a male increases the likelihood of financial inclusion. In the use of Islamic finance products (IFPs) three of the variables suggested similar influences, except for educational attainment, which indicated that the higher the educational attainment of an individual, the lower their likelihood of using Islamic finance products. In accordance with the conceptual model of the study.