Abstract
The persistent issue of financial inclusion (FI) among unbanked Nigerians has been a major concern in Nigeria and other developing nations worldwide. This menace has contributed to poverty levels and low per capita income (PCI), which have affected the livelihoods of Nigerian citizens. This serves as a motivation that makes the study contribute uniquely by exploring financial inclusion enhancement as a correlate to per capita income as well as investigating the impact of FI and income per capita on Nigeria’s economic performance. The secondary data utilized for this study covers 1993 to 2023 and was extracted from the World Bank development indicator. We performed the unit root test to establish the stationarity of the series, and the VAR model reveals a short-run relationship between economic performance, FI, and PCI, while controlling for population growth. The FMOLS shows that FI and PCI have a positive long-run significant effect on economic performance, while population growth has a negative significant influence on economic performance in the long run. Therefore, the government should prioritize the implementation of both shortterm and long-term sustainable solutions. These solutions should uphold the mandatory policies for financial inclusion, which will integrate the unbanked into the financial system, improve per capita income, and mitigate the poverty rate caused by population growth.
Keywords: Economic Performance, FI, FMOLS, PCI, Unit Root Test, VAR Model.