Impact of Digital Financial Services on Micro_enterprises Growth in Kano State

Student: Aishat Nifemi Dauda (Project, 2025)
Department of Economics
Bayero University, Kano, Kano State

Abstract

Micro‐ enterprises, which constitute over 90% of businesses in Nigeria, contribute substantially
to employment and GDP but remain hampered by stringent loan requirements and high-interest
rates imposed by conventional banks (Adelekan, Eze, & Majekodunmi, 2019). Studies have shown
that only about 57% of Nigeria’s bankable adults currently hold formal bank accounts, while in
Kano the rate is even lower due to infrastructural challenges and lower levels of financial literacy
(Enhancing Financial Innovation & Access, 2021a). The digital transformation in finance is
expected to bridge this gap by enabling faster and more inclusive access to financial products. For
instance, research suggests that if digital financial services were fully optimized, Nigeria’s GDP
could increase by up to 12.4% by 2025 through improved productivity and expanded financial
inclusion (United States Agency for International Development, 2017; Reuters, 2024).

Keywords
impact digital financial services micro enterprises growth state
Filters
Institutions