Kamilu A. Saka & Mukail A. Akinde

This study predicts within Tobit regression framework the relationship between mobile money penetration and financial inclusion in Nigeria. The study employs secondary data obtained from World Bank Global Financial Inclusion Database (2023) and IMF Financial Access Survey (2023) for a period between 2011 and 2021 respectively. Tobit estimation results via maximum likelihood estimator reveal that increase in the number of mobile money agents per 1,000 km2 would significantly increase expected Nigeria financial inclusion index. However, this index will significantly fall with greater number of mobile money accounts and value of mobile money transactions during a reference year assuming that the number of mobile money agents per 1,000 km2 remains the same over a period. Therefore, the study affirms that mobile money penetration produces mixed results for predicted Nigeria financial inclusion index. It increases with number of mobile money agents on one hand and fall with number of mobile money accounts and value of mobile money transactions on the other hand. The study recommends that there should be increase in the number of mobile money agents per 1,000 km2 in Nigeria. Again, there should be policy redesign for control and regulations of mobile money accounts and mobile money transactions activities by governments and other stakeholders in the industry particularly mobile network operators. Keywords: Mobile Technology, Mobile Money, Financial Inclusion, Tobit 0150