Financial Inclusion and Poverty Reduction among Rural Women in Nsukka Local Government Area, Enugu State

Financial inclusion has been identified as a fundamental enabler of economic empowerment and poverty alleviation, particularly for rural women who have historically been marginalised from formal financial systems in developing economies. This study examines the relationship between financial inclusion and poverty reduction among rural women in Nsukka Local Government Area, Enugu State. The study is anchored on the Capability Approach theorised by Amartya Sen, which emphasises individuals' freedom to access resources that expand real economic choices and improve living standards. A descriptive survey research design was employed. The study population comprised 342 rural women aged between 18 and 55 years in three communities within Nsukka LGA. A sample of 183 respondents was drawn using multi-stage random sampling. Data were collected through structured interviews and questionnaires, then analysed using descriptive statistics and logistic regression analysis. Findings reveal that access to microfinance, mobile banking services, and savings cooperatives significantly reduces the probability of chronic poverty among rural women. The results further show that women who possess financial literacy skills utilise formal financial services more effectively and achieve higher household income levels within two years of initial access. It is concluded that financial inclusion, when combined with financial education, represents a viable and replicable pathway to poverty reduction in rural southeastern Nigeria. The study recommends that the Central Bank of Nigeria and state microfinance agencies design gender-sensitive outreach programmes and reduce Know-Your-Customer barriers for rural women.

Keywords: Financial inclusion, poverty reduction, rural women, Capability Approach, Nsukka