Mobile Payments and Poverty Reduction in Nigeria: An Econometric Analysis.

Abstract:

This study investigates the relationship between mobile payment systems and poverty reduction in Nigeria from 1999 to 2024, employing an econometric analysis. Specifically, it examines the effects of Unstructured Supplementary Service Data (USSD) payments and mobile banking application payments on poverty reduction. Secondary data were sourced from the Central Bank of Nigeria Statistical Bulletin and the World Bank, and analyzed using multiple regression analysis with EViews 11. Prior to estimation, unit root tests confirmed that all variables were stationary at first difference, I(1). The regression results indicate that both USSD payments and mobile banking application payments exhibit negative but statistically insignificant relationships with poverty reduction. Consequently, the null hypotheses that mobile payment platforms do not significantly impact poverty reduction were accepted. The findings suggest that while mobile payments enhance financial inclusion, their contribution to reducing poverty in Nigeria remains limited, likely due to structural, infrastructural, and socioeconomic constraints. The study recommends that financial literacy programs and supportive economic policies be implemented to maximize the poverty-alleviating potential of mobile payment systems.