Title: Financial Sector Development And Performance Of The Nigerian Economy
Authors: EMIFONIYE, Augustine Akpobaro
Volume: 9
Issue: 1
Pages: 13-23
Publication Date: 2025/01/28
Abstract:
The study used time series data from the years 1988 to 2023 to assess financial sector development and performance in the Nigerian economy (35 years). The unit root test is used in the study to ascertain the status of the variables. In order to create both short- and long-term dynamic interactions between the endogenous and exogenous variables, it also makes use of the statistical techniques of Johansson co-integration and error correction model (ECM). According to the results, the total number of banks (TNB), the general money supply (MGR), and the interest rate all had two negative effects on how well the Nigerian economy performed throughout the observation period although these effects were statistically insignificant. Although the associations are statistically significant in the short run, bank deposits and credit have a beneficial impact on economic growth. The study comes to the conclusion that specific financial sector characteristics help Nigeria's economy flourish. According to the report, the Central Bank of Nigeria should boost the financial sector by developing suitable monetary and regulatory policies that support banks' ability to provide financial intermediation services and, eventually, contribute to Nigeria's economic growth.