DIGITAL FINANCIAL INCLUSION AND BUSINESS GROWTH: A STUDY OF MICRO, SMALL AND MEDIUM ENTERPRISE OPERATORS IN NIGER STATE

Abstract

Digital financial services—particularly mobile banking, mobile money, and fintech platforms are increasingly recognized as critical enablers of MSME performance by reducing transaction costs, expanding market access, and facilitating credit. However, this study examines the relationship between digital financial inclusion and the growth of micro, small, and medium enterprises (MSMEs) in Niger State, Nigeria. Using a quantitative survey design, data were collected from 378 MSME operators across the state’s 25 local government areas, selected through multistage sampling. Structured questionnaires measured access to digital finance and business outcomes, with validity confirmed through pilot testing and reliability established via Cronbach’s alpha (α > .70). Regression analysis revealed that digital financial inclusion significantly enhances MSME sales growth, with the model explaining 58.5% of performance variance (R² = .585, F(3,374) = 111.756, p < .001). Mobile banking showed the strongest effect (β = .412, p < .001), followed by mobile money (β = .365, p < .001) and fintech platforms (β = .298, p < .001). It was concluded that the findings demonstrate that integrated digital finance ecosystems are vital to MSME resilience, liquidity, and expansion. The study recommends that banks and telecom policy providers should double their efforts to strengthen mobile banking infrastructure, enhance mobile money usability, and promote fintech adoption alongside financial literacy and consumer protection measures.