MOBILE BANKING AND FINANCIAL INCLUSION IN NIGERIA: INSIGHTS FROM OPAY DIGITAL BANKING

Financial inclusion is central to sustainable development and economic empowerment, especially in developing countries like Nigeria. While OPay's mobile banking network has indeed spread rapidly throughout Nigeria, the actual extent to which it increases financial inclusion remains uncertain, hence leaving a gap in understanding its actual effectiveness for underserved populations. This study investigated the role of mobile banking in promoting financial inclusion in Nigeria, using OPay Digital Banking as a case study. The study was anchored on the Diffusion of Innovation Theory, complemented by the Technology Acceptance Model and Financial Intermediation Theory. A descriptive survey design was adopted, and primary data were collected from OPay users across Lagos, Oyo, and Ogun States through structured questionnaires. Data were analyzed using descriptive and inferential statistics, including regression, correlation, and t-tests. Findings revealed that OPay significantly enhances financial inclusion. All service dimensions accessibility, affordability, transaction speed, range of services, and perceived security were significant positive predictors. Among specific services, mobile transfers showed the strongest correlation with financial inclusion, followed by mobile savings and bill payments. Challenges identified include digital literacy gaps, limited device access, trust issues, and weak network infrastructure. Despite these, comparative analysis showed that OPay’s model outperforms traditional banking in accessibility, cost effectiveness, and service speed, making it a viable alternative for underserved populations. The study also established notable accounting and regulatory implications in areas such as transaction transparency, compliance with CBN guidelines, financial reporting, and KYC implementation. The study concludes that mobile banking platforms such as OPay are transformative for financial inclusion, delivering innovative, accessible, and affordable services. It recommends targeted digital literacy programs, adaptive regulatory frameworks, and stronger digital infrastructure. Contributions to knowledge include platform-specific empirical insights, a multi-theoretical explanatory framework, and pioneering evidence on regulatory and accounting implications of mobile banking in Nigeria.