The Impact of Digital Financial Services on Savings Mobilisation in Rural Households: Evidence from Kogi State

Digital financial services have the theoretical potential to overcome physical access barriers and mobilise savings from rural populations that are structurally excluded from conventional banking, yet empirical evidence from Nigeria's rural interior remains limited. This study examines the causal impact of digital financial services adoption on savings mobilisation among rural households in Kogi State, located at the intersection of Nigeria's North Central, South West, and South South zones and thus serving as a geographic midpoint that captures diverse financial behaviour profiles. A quasi-experimental design using difference-in-differences estimation is applied, exploiting exogenous variation in mobile network infrastructure rollout as an instrument for digital financial services adoption. Primary data are gathered from 600 rural households in Lokoja, Okene, and Idah across two survey waves conducted in 2022 and 2024. The study measures savings outcomes including total savings amount, savings frequency, formal versus informal savings allocation, and self-reported savings sufficiency. The theoretical framework integrates the technology-enabled financial inclusion model, the transaction cost theory of financial intermediation, and the buffer stock savings model. The instrumental variable strategy addresses the endogeneity concern that financially motivated households may both adopt digital services and save more independently. Existing literature from East Africa, particularly Kenya and Tanzania, confirms strong positive effects of mobile money on savings mobilisation, but Nigerian evidence remains underpowered. This study provides rigorous causal estimates of these effects in the Nigerian context and informs the Central Bank of Nigeria's digital financial services strategy and telecom infrastructure investment decisions. Keywords: digital financial services, savings mobilisation, rural households, Kogi State, quasi-experimental