EXAMINING THE ROLE OF FINANCIAL TECHNOLOGY IN ALLEVIATING POVERTY: EMPIRICAL EVIDENCE FROM NIGERIA
Abstract
Poverty remains a persistent global challenge, with significant implications for health, living standards, and economic stability. In Nigeria, over 40% of the population lives in poverty, underscoring the urgent need for innovative solutions. Financial technology (fintech) has emerged as a transformative tool in enhancing financial inclusion and reducing poverty. However, limited empirical research exists on its impact in Nigeria. This study investigates the relationship between fintech adoption and poverty reduction, employing multiple linear regression analysis on data from 1993 to 2020 sourced from the National Bureau of Statistics and the Central Bank of Nigeria. Key variables include poverty rate, fintech innovation, literacy rate, mortality rate, and gross domestic product (GDP). The findings reveal a significant negative relationship between fintech innovation and poverty rate, indicating that fintech contributes to poverty alleviation. Conversely, literacy rate, mortality rate, and GDP exhibit insignificant effects on poverty reduction. The study highlights the importance of expanding digital infrastructure, enhancing fintech education, and implementing regulatory reforms to foster financial inclusion. These insights provide valuable policy