The Effect of Financial Literacy on the Improvement of Financial Inclusion in Nigeria: Study of Selected Small and Medium Enterprises in Abakaliki Metropolis (original) (raw)

This study investigated the effect of financial literacy on the improvement of financial inclusion in Nigeria (study of selected small and medium enterprises in Abakaliki metropolis. The specific objectives were: examine the effect of financial knowledge on financial inclusion in small and medium enterprises in Abakaliki metropolis; to investigate the effect of financial experience on financial inclusion in small and medium enterprises in Abakaliki metropolis; and to find out the effect of financial skill on financial inclusion in small and medium enterprises in Abakaliki metropolis. The ordinary least squares (OLS) technique was employed to estimate the parameters. The findings indicate that Southeast Nigeria: there is significant effect of financial knowledge on the improvement of financial inclusion in Small and medium enterprises in Southeast Nigeria; financial experience has significant positive effect on the improvement of financial inclusion in Small and medium enterprises in Abakaliki metropoli; and financial skills have significant positive effect on the improvement of financial inclusion in Small and medium enterprises in. Based on the outcome of the various tests carried out and the hypothesis evaluated, the study makes the following recommendations: Banks should develop a mechanism (expansion of financial education facilities) to educate to expand the financial knowledge of their SME customers; Banks in Southeast should conduct account opening programme specifically for small and medium holder business to expand their experience of financial products and improve their financial inclusion; and there is need for banks to develop synergy that will produce in-bank or in