Title: Financial Institutions Regulations and Economic Performance of Nigeria
Authors: Andrew E.O. ERHIJAKPOR Ph.D., FCA & Endurance O. EYAMU
Volume: 8
Issue: 10
Pages: 22-33
Publication Date: 2024/10/28
Abstract:
This study examined financial institutions' regulations and economic performance of Nigeria from 1987 to 2021. The study used ex-post facto research design. The reason is that the data collected are already in existence in annual reports and CBN statistical bulletin of Nigeria. The study adopted The ARDL Methodology. Meanwhile, the study subjected to descriptive statistics, correlation analysis, multi-collinearity test-Variance Inflation factors-VIF, and the Ramsey Reset Test-RRT, and Heteroscedasticity test-HET. The study applied the ARDL and found that, Capital adequacy, credit to private sector, and liquidity ratio have direct but significant effect on economic performance of Nigeria both on the short and long run. Meanwhile, lending rate-interest rate have indirect yet minimal effect on economic performance of Nigeria both on the short and long run. Hence, the study conclude that, financial institutions regulation have a positive significant effect on economic performance of Nigeria within the periods under investigation. Consequently, the paper submitted that, the Central Bank of Nigeria should ensure that, the current capital adequacy ratio should be sustained. Lastly, the CBN should ensure that, more greater incentives for banks which extend credit facilities to the private sector.