Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between peer-to-peer lending and financial inclusion of rural dwellers has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Nigerian Oil and Gas Sector where operating conditions differ markedly from more developed markets.

Within the context of the Nigerian Oil and Gas Sector, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of peer-to-peer lending on financial inclusion of rural dwellers, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on peer-to-peer lending, there remains limited consensus on the precise nature of its relationship with financial inclusion of rural dwellers, particularly within the Nigerian Oil and Gas Sector. Many organizations continue to make decisions about peer-to-peer lending without a clear, evidence-based understanding of how those decisions ultimately affect financial inclusion of rural dwellers. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Peer-to-Peer Lending on financial inclusion of rural dwellers in the Nigerian Oil and Gas Sector.
2. To assess the extent to which peer-to-peer lending influences financial inclusion of rural dwellers within the study area.
3. To identify the challenges associated with peer-to-peer lending in relation to financial inclusion of rural dwellers.
4. To recommend strategies for optimizing peer-to-peer lending in order to improve financial inclusion of rural dwellers.

1.4 Research Questions

1. What is the effect of peer-to-peer lending on financial inclusion of rural dwellers in the Nigerian Oil and Gas Sector?
2. To what extent does peer-to-peer lending influence financial inclusion of rural dwellers within the study area?
3. What challenges are associated with peer-to-peer lending in relation to financial inclusion of rural dwellers?
4. What strategies can be adopted to optimize peer-to-peer lending in order to improve financial inclusion of rural dwellers?

1.5 Significance of the Study

Beyond its academic contribution to the field of finance / banking, this study has practical value for management teams within the Nigerian Oil and Gas Sector seeking to understand how peer-to-peer lending translates into measurable outcomes around financial inclusion of rural dwellers. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Peer-to-Peer Lending and its relationship with financial inclusion of rural dwellers within the context of the Nigerian Oil and Gas Sector. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.