Examining the Nexus between Insecurity and Financial Inclusion: Evidence of Mobile Banking in Nigeria

Helen Walter Mboto; Innocent Obeten Okoi; Bassey Enya Ndem; Akaninyene Billy Orok; Charles Effiong; Edom Onyam Edom; Abosede Abimbola; Samuel Manyo Takon; Fidelis Anake Atsaye; Peter Kekung Bessong

doi:10.61707/xssnre80

Authors

Helen Walter Mboto Associate Professor of Finance Department of Banking and Finance, University of Calabar, Cross River State, Nigeria
Innocent Obeten Okoi Senior Lecturer Department of Banking and Finance, University of Calabar, Cross River State, Nigeria
Bassey Enya Ndem Department of Econimics, University of Calabar, Cross River State, Nigeria
Akaninyene Billy Orok Senior Lecturer Department of Banking and Finance, University of Calabar, Cross River State, Nigeria
Charles Effiong Senior Lecturer Department of Business Management, University of Calabar, Cross River State, Nigeria
Edom Onyam Edom Department of Banking and Finance, University of Calabar, Cross River State, Nigeria
Abosede Abimbola Associate Professor, Department of Business Management, University of Calabar, Cross River State, Nigeria
Samuel Manyo Takon Associate Professor Department of Banking and Finance, University of Calabar, Cross River State, Nigeria
Fidelis Anake Atsaye Senior Lecturer Department of Banking and Finance, University of Calabar, Cross River State, Nigeria
Peter Kekung Bessong Associate Professor Department of Accounting, University of Calabar, Cross River State, Nigeria

DOI:

https://doi.org/10.61707/xssnre80

Keywords:

Insecurity, Financial Inclusion, Mobile Banking, Accessibility, Affordability, Usage

Abstract

The research aimed to explore the impact of insecurity on mobile banking usage, assessing its effects on accessibility and affordability in Nigeria. Specifically focused on the Niger Delta region, the study sought to uncover insights into the relationship between insecurity and financial inclusion, particularly within the context of mobile banking services.The study employed a descriptive cross-sectional design, utilizing purposive sampling to collect data from 311 mobile banking operators and users in Nigeria. A specialized questionnaire assessed how insecurity impacts mobile banking services in terms of usage, accessibility, and affordability. Data analysis involved employing ordinary least square model to test research hypotheses.The findings of the study revealed a significant negative relationship between insecurity and the usage, accessibility, and affordability of mobile banking in the Niger Delta region of Nigeria. The results indicated that as insecurity increases, there is a likelihood of a decrease in the usage and accessibility of mobile banking services. The study also highlighted the impact of insecurity on financial inclusion, particularly in the form of kidnapping, hostage-taking, violence, and other social vices, which have hampered the quality of financial products and the number of financially included individuals in the region.The study identified several gaps in the existing literature on insecurity and financial inclusion in Nigeria. It noted that previous studies often focused solely on financial inclusion, neglecting the influence of insecurity. Additionally, many studies were primarily theoretical and qualitative in nature, and some were found to have methodological and analytical limitations. Furthermore, the research highlighted that this study was the first of its kind to be conducted in the South-south region of Nigeria, indicating an existing gap in the understanding of insecurity and financial inclusion in this specific area.