Impact of Digital financing and Human Development in selected state agencies in Osun State

Abstract

As more and more people use digital financial solutions, there is a greater demand to evaluate the role of these new innovations in the socio-economic development and human wellbeing. The paper looks at how digital financing can influence human development in the chosen state agencies in Osun State, Nigeria, between 2024 and 2025. Those agencies include the Ministry of Health, State Education Board, Agricultural Development Corporation, and Microfinance Directorate and the Social Welfare Department. The research evaluates the level to which digital financing boosts service delivery, financial inclusion, and human development within the public institutions. This involved the use of a mixed-method methodology, which involved surveys (n= 374) and in-depth interviews (n= 15) that were selected based on the five agencies. Descriptive and inferential statistics were employed to analyse data in order to determine the connection between digital financing adoption and the increases in human development indicators like education, healthcare, and economic empowerment. The results show that although digital financing has enhanced the efficiency of operations in some agencies, its potential in human development has not been fully 31 Olawepo et al. (2025) IJOGDES, 12(2):31-47 exploited. The chronic issues like the lack of digital infrastructure, poor public awareness and the unwillingness to embrace technology have categorically inhibited institutional performance. The paper identifies the necessity of policy changes, capacity building and enhanced public-private collaborations to optimize the advantages of digital financing on human development. This study highlights the need to integrate digital financial strategies in the governance systems in order to promote service delivery and sustainable development in Osun State.