BARRIERS AND DRIVERS OF FINANCIAL INCLUSION IN RURAL KADUNA STATE, NIGERIA: A QUALITATIVE INVESTIGATION

Abstract

Despite the critical role of financial inclusion in economic growth, poverty reduction, and social equity, formal financial services often disproportionately exclude rural populations.
This study employs a qualitative approach, using purposively a semi-structured interview with residents who have limited engagement with banks, microfinance institutions, and mobile money services. Thematic analysis was applied to identify patterns in participants’ perceptions, experiences, and behaviours. Findings reveal that financial exclusion is shaped by the interplay of supply-side factors (distance to banks, inadequate infrastructure, and high service costs), demand-side factors (socio-cultural norms and gendered financial roles), and capability factors (low financial literacy and limited awareness of digital financial services). Participants also highlighted mistrust of formal institutions, reliance on informal savings groups, and challenges in accessing mobile money platforms due to connectivity and literacy constraints. The study underscores the need for a multidimensional approach to addressing rural financial exclusion, integrating financial infrastructure expansion with culturally responsive awareness programmes and targeted financial literacy initiatives to improve access to and effective utilisation of formal financial services. Policymakers, including the Central Bank of Nigeria, local government agencies, and development organizations, should implement context-specific strategies that enhance access, trust, and usage of financial services in rural communities.