Financial institutions concentration and financial inclusion penetration in Nigeria: a comparative analysis

Figures & data

Table 1. Financial inclusion penetration: Lagos and Ekiti.

Formal bank account ownership	Yes	No	Chi-Square	Total
Lagos	150(81)	35(19)	7.278 (0.007)	185
Ekiti	61(60)	41(40)	4.571 (0.002)	102
Total	211	76		287

Source: Author’s computation, 2018 (% in parenthesis)

Table 2. Effect of financial inclusion penetration in the two states.

Location		Variables in the equation
		B	S.E.	Wald	Df	Sig.	Exp(B)
Step 1^a	Lagos	.456	.289	2.497	1	.014	1.578
	Ekiti	−.692	.321	4.638	1	.031	.501
	Constant	1.048	.149	49.623	1	.000	2.852

Source: Author’s computation, 2018

^a Variable(s) entered in step 1: Lagos, Ekiti

Table 3. Barriers to financial inclusion.

	LAGOS				EKITI
	T	Sig.	Mean Difference	Rank	t	Sig.	Mean Difference	Rank
Irregular income/loss of job	59.921	.000	3.69091	1	18.665	.000	3.13725	4
High maintenance fee	35.515	.000	3.27273	4	24.339	.000	3.27451	2
Strong informal service in the area	18.010	.000	2.24545	7	14.162	.000	2.76471	7
No means of identification	18.360	.000	1.99091	8	15.613	.000	2.70588	8
Low customer care	26.353	.000	1.62727	10	18.985	.000	1.70588	11
Past bad experience with the bank	20.330	.000	1.61818	11	13.750	.000	1.94118	10
Low literacy level	19.882	.000	1.77273	9	18.513	.000	2.23529	9
No network/non-functional ATM	13.183	.000	1.41818	12	11.789	.000	1.45098
Unknown/hidden charges	60.457	.000	3.46364	2	49.324	.000	3.37255	1
Bank too far from my house	23.595	.000	2.84545	6	18.914	.000	2.80392	6
Long queue in the bank	44.126	.000	3.29091	3	26.298	.000	3.15686	3
Religious beliefs	27.587	.000	1.62727	10	20.074	.000	1.37255	12
High minimum balance	30.507	.000	1.17273	13	11.785	.000	1.17647	13
I don’t trust banks	42.306	.000	3.26364	5	20.445	.000	3.11765	5

Source: Author’s computation, 2018.

Table 4. Regression results of financial inclusion and barriers to financial inclusion.

	Column 1				Column II
	Lagos				Ekiti
Characteristics	Coeff.	Wald	Sig.	Odds ratio	Coeff.	Wald	Sig.	Odds ratio
Sex (Male)	3.496	2.986	0.084*	32.978	1.747	3.456	0.104	4.923
Sex (Female)	0.128	1.297	0.005**	2.553	-3.456	2.116	0.002 ***	8.949
Age 20–40	.313	3.882	0.049**	1.986	0.424	1.789	0.067 *	1.234
No Edu.	-4.567	3.005	0.003 **	5.784	-0.233	0.433	0.116	2.255
Post-Sec. Edu.	0.767	1.667	0.001***	6.719	0.906	1.213	0.027**	2.475
Rural	-0.128	2.786	0.101*	1.999	-0.115	1.555	0.051**	7.565
Salary Earner	0.767	2.377	0.019***	23.308	1.752	0.982	0.191	0.967
High Internet Penetration	3.453	1.660	0.027**	20.867	0.013	1.004	0.069*	4.567
Positive State Govt. Policy	5.230	4.669	0.038**	3.619	1.916	0.769	0.718	1.419
Irregular Inc./Loss of Job	-1.547	3.471	0.062*	24.696	0.313	0.716	0.106*	14.989
Unknown/Hidden	-4.198	2.140	0.014***	46.546	-1.782	1.233	0.025**	14.985
Long Distance	-1.382 2.566	0.019***	10.223	-1.233	2.238	0.567	18.127
Omnibus Tests of Model Coefficients	Chi-square			Sig.	Chi-square			Sig.
	112.974			0.000	96.022			0.000
Pseudo R Squared	Cox and Snell			Nagelkerke	Cox and Snell			Nagelkerke
	64.2			85.6	42.9			63.3
Hosmer and Lemeshow Test	0.976				0.713
Overall Percentage	90.9				86.6
Observations	185				102

Source: Author’s computation. *** 1% significance level; ** 5% significance level; * 10% significance level

Table 5. Regression results for the frequency of usage, business performance, and well-being.

	Column 1				Column II
	Lagos			Exp(B)	Ekiti			Exp(B)
	Coeff.	Wald	Sig.	Odds Ratio	Coeff.	Wald	Sig .	Odds Ratio
Type of Account (Saving)	1.880	2.667	0.012**	15.666	0.823	3.889	0.073***	5.617
Type of Transaction (Receive Money)	8.051	10.775	0.029**	9.767	1.098	1.990	0.102	4.676
Age in Bus. (>5 yr)	4.675	1.780	0.005**	6.209	0.918	2.718	0.664	1.456
Acct Open (>2)	1.213	0.880	0.016 **	3.567	0.705	1.546	0.041**	0.140
Get Support	3.742	4.360	0.037**	5.374	0.373	0.783	0.222	0.676
Use Other Service	1.276	0.444	0.001*	1.273	0.613	1.212	0.177	1.775
Increase in Bus. Profit (Yes)	0.737	1.645	0.045**	2.934	1.203	4.314	0.091***	0.391
Add Value to My Life (Yes)	4.355	2.341	0.014**	3.952	0.807	2.414	0.009**	2.931
Self-Employed	0.919	0.717	0.063***	5.056	-0.119	2.717	0.114	0.877
Type of Bank (Microfinance)	0.626	0.915	0.112	1.456	0.319	0.888	0.233	2.771
Omnibus Tests of Model Coefficients	Chi-square			Sig.	Chi-square			Sig.
	81.042			0.000	72.113			0.000
Pseudo R-Squared	Cox and Snell			Nagelkerke	Cox and Snell			Nagelkerke
	54.2			75.2	48.9			60.5
Hosmer and Lemeshow Test	0.816				0.733
Overall Percentage	80.9				76.6
Observations	185				102

Source: Author’s computation (2018). *** 10% significance level; ** 5% significance level; * 1% significance level.