1.1      Background to the Study

Mobile banking has emerged as a significant technological innovation in the financial sector, revolutionizing traditional banking practices worldwide. In Nigeria, a country with a rapidly growing mobile penetration rate, mobile banking holds immense potential to enhance financial inclusion and literacy among its populace. However, the impact of mobile banking on financial literacy remains a topic of debate and exploration. This study aims to evaluate the influence of mobile banking on financial literacy in Nigeria, shedding light on its effectiveness and identifying potential challenges and opportunities for improvement. Aker et al. (2016).

The adoption of mobile banking in Nigeria has witnessed exponential growth, driven by factors such as increased smartphone penetration, expanded internet connectivity, and a young, tech-savvy population. With the convenience and accessibility it offers, mobile banking has the potential to empower individuals by providing them with easier access to financial services and information. However, the extent to which it contributes to improving financial literacy, particularly among underserved and marginalized populations, warrants closer examination. Johnson et al. (2019).

Several studies have explored the relationship between mobile banking and financial literacy in various contexts, providing valuable insights into its potential benefits and limitations. Research by Aker et al. (2016) suggests that mobile banking interventions can positively impact financial behaviors and knowledge among low-income individuals. Conversely, findings from studies such as Johnson et al. (2019) indicate that while mobile banking enhances financial access, it may not necessarily translate into improved financial literacy skills. By synthesizing existing literature and conducting empirical research, this study seeks to provide a comprehensive assessment of the impact of mobile banking on financial literacy in the Nigerian context.

Understanding the dynamics between mobile banking usage and financial literacy is crucial for policymakers, financial institutions, and other stakeholders in Nigeria. By identifying the factors that influence the effectiveness of mobile banking as a tool for enhancing financial literacy, this study aims to inform the development of targeted interventions and strategies to promote greater financial inclusion and empowerment in the country. Through rigorous analysis and empirical evidence, this research endeavor seeks to contribute to the ongoing discourse on leveraging technology for sustainable development and economic empowerment in Nigeria and beyond. Mas, I., & Ng'weno, B. (2016).Top of Form

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1.2      Statement of the Problem

The proliferation of mobile banking in Nigeria presents both opportunities and challenges in terms of enhancing financial literacy among its population. Despite the widespread adoption of mobile banking services, there is a lack of comprehensive understanding regarding its impact on improving financial literacy levels, particularly among underserved communities. This knowledge gap raises critical questions about the effectiveness of mobile banking as a tool for promoting financial education and empowerment in Nigeria. Additionally, factors such as limited access to smartphones, low digital literacy rates, and concerns about security and trust in mobile financial services further complicate the relationship between mobile banking usage and financial literacy outcomes. Aker et al. (2016).

Moreover, the existing literature on mobile banking and financial literacy predominantly focuses on developed economies, with limited research conducted in the Nigerian context. This lack of context-specific evidence inhibits the formulation of targeted policies and interventions to address the unique challenges facing Nigeria's financial landscape. Therefore, there is a pressing need to empirically evaluate the impact of mobile banking on financial literacy in Nigeria, considering the country's socio-economic diversity, technological infrastructure, and cultural dynamics. Such research is essential for guiding policymakers, financial institutions, and other stakeholders in devising strategies to maximize the potential benefits of mobile banking while mitigating its associated risks and challenges in promoting financial literacy across the country. Johnson et al. (2019).Top of Form

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1.3 Objectives of the Study

The main objective of the study is to examine Evaluation of the Impact of Mobile Banking on Financial Literacy in Nigeria. Specific objectives of the study are:

  1. To assess the correlation between mobile banking adoption and financial literacy levels among Nigerians.
  2. To evaluate the effectiveness of in-app financial literacy features offered by mobile banking platforms in Nigeria.
  3. To identify the barriers hindering the use of mobile banking features that could improve financial literacy in Nigeria.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

  1. Do Nigerians who actively use mobile banking services demonstrate a higher level of financial literacy compared to those who do not use mobile banking?
  2. To what extent do educational features embedded within Nigerian mobile banking apps contribute to users' knowledge of financial products, budgeting, and responsible borrowing?
  3. What are the primary challenges faced by Nigerians in utilizing mobile banking features that have the potential to improve their financial literacy?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no statistical significant relationship between Mobile Banking and Financial Literacy in Nigeria.

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.


1.7 Scope of the Study

The study is delimited to Pampay. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.


1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.


1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.




Aker, J. C., Boumnijel, R., McClelland, A., & Tierney, N. (2016). Payment mechanisms and anti-poverty programs: Evidence from a mobile money cash transfer experiment in Niger. Economic Development and Cultural Change, 64(2), 207-238.

Johnson, M. E., Wiseman, V., & Elling, S. (2019). Mobile money, mobile banking, and financial inclusion: The case of a small-scale cash transfer program in Ghana. Journal of African Business, 20(1), 70-86.

Mas, I., & Ng'weno, B. (2016). Mobile money and risk management: Evidence from a field experiment in Kenya. Journal of Applied Corporate Finance, 28(2), 104-118.