Impact of FinTech Development on Economic Growth in Nigeria

Abstract

This study examines the impact of financial technology (FinTech) on Nigeria’s economic growth by analysing the relationship between real gross domestic product (RGDP) and key FinTech indicators: mobile money transactions (MMT), automated teller machine (ATM) usage, and point-of-sale (POS) transactions. Using time series data from the Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), the World Bank, and industry reports, the study employs an Autoregressive Distributed Lag (ARDL) model to assess both short- and long-run dynamics. The findings reveal a significant error correction term (-0.1445, p = 0.0000), confirming a stable long-run relationship between FinTech variables and economic growth. However, while MMT, ATM, and POS transactions exhibit negative and positive longterm relationships with RGDP, their effects are statistically insignificant. The high R-squared (0.9389) and F-statistic (10.5364, p = 0.0026) affirm the model's robustness in the short run. These results suggest that while FinTech enhances financial inclusion, its long-term impact on economic growth remains inconclusive, warranting further investigation.