Financial Inclusion and Monetary Policy in West Africa

  • Sa'ad Babatunde Akanbi University of Ilorin, Nigeria
  • Ridwan Olamilekan Dauda Kwara State University, Malete, Nigeria
  • Hammed Agboola Yusuf University of Ilorin, Nigeria
  • Abdulganiyu Idris Abdulrahman University of Ilorin, Nigeria


The study investigated the impact of financial inclusion on the effectiveness of monetary policy in West Africa for the period 2005 to 2018. The study employed Granger panel non-causality test developed by Dumitrescu and Hurlin to determine the direction of causality between inflation (a proxy for monetary policy) and indicators of financial inclusion. The system GMM was also employed to investigate the impact of each indicator of financial inclusion on monetary policy. The results show that financial inclusion is a major determinant of monetary policy. The study concludes that financial inclusion should be broaden to include large number of economic agents in the rural areas and in informal sector because large volume of financial transactions take place within this sector.

How to Cite
AKANBI, Sa'ad Babatunde et al. Financial Inclusion and Monetary Policy in West Africa. Journal of Emerging Economies and Islamic Research, [S.l.], v. 8, n. 2, p. 88-99, may 2020. ISSN 2289-2559. Available at: <>. Date accessed: 13 july 2020. doi: