FINANCIAL INCLUSION AND HUMAN CAPITAL DEVELOPMENT AMONG INFORMAL SECTOR WORKERS IN IMO STATE

Abstract

This study examined the relationship between financial inclusion and human capital development among informal sector workers in Imo State, Nigeria. It focused on three key dimensions-access to microcredit, participation in Isusu (savings groups), and mobile money usageand how these are associated with skill acquisition, health expenditure, and investment in education. A descriptive survey design was adopted, with data collected from 360 respondents across Owerri Municipal and Orlu zones using structured questionnaires and interviews. Data were analyzed using descriptive statistics and chi-square tests. The findings revealed a significant association between access to microcredit and skill acquisition, suggesting that informal workers with access to credit are more likely to invest in vocational training and business development. Participation in Isusu savings groups was marginally associated with health expenditure, suggesting that informal savings mechanisms may help manage healthcare costs. Mobile money usage was also significantly associated with investment in education, likely by facilitating payments and encouraging savings for schooling. The study concluded that financial inclusion is positively associated with key dimensions of human capital development by reducing financial constraints and supporting investments in education, skills, and health. It recommends expanding access to inclusive financial
services and strengthening financial literacy initiatives.