IMPACT OF ARTIFICIAL INTELLIGENCE-DRIVEN CREDIT MANAGEMENT ON ACCESS TO FINANCE IN NIGERIA

Abstract

This study investigates the impact of Artificial Intelligence-Driven Credit Management (AIDCM) on access to finance in Nigeria, with a focus on three core dimensions: Credit Risk Assessment, Loan Portfolio Optimization, and Fraud Detection and Compliance Monitoring. Adopting a quantitative research design, primary data were collected through structured questionnaires administered to 378 respondents across selected urban and semi-urban centers in Nigeria. The data were analyzed using simple and multiple linear regression techniques to test the hypothesized relationships. Findings reveal that all three dimensions of AIDCM exert statistically significant positive effects on access to finance. Credit Risk Assessment demonstrated the strongest influence (β = 0.27, p < 0.001), followed by Loan Portfolio Optimization (β = 0.21, p < 0.001) and Fraud Detection and Compliance Monitoring (β = 0.16, p = 0.002). These results indicate that AI-driven systems enhance financial inclusion by improving credit scoring accuracy, enabling dynamic loan pricing, and fostering trust through secure digital transactions. The study concludes that AIDCM is a potent enabler of financial inclusion in Nigeria but requires complementary investments in digital infrastructure, regulatory oversight, and algorithmic fairness to ensure equitable outcomes. The findings offer valuable insights for policymakers, financial institutions, and fintech developers aiming to leverage AI for inclusive economic growth in line with Nigeria’s Financial Inclusion Strategy (2020–2024).