Effect of Financial Development on Economic Growth in Nigeria
Abstract
This study examined the effect of financial development on economic growth in Nigeria from 1990 to 2024. The study generated the effect of financial depth, the influence of private sector credit to GDP ratio, the effect of stock market development and the effect of banking sector development on economic growth in Nigeria. Data for the study was generated principally from secondary sources and the statistical techniques employed in analyzing the data was ordinary least square method. The result of the findings which are stated in line with the objectives showed that, financial development indicators are banking sectors assets to GDP. It was also observed that broad money supply to GDP had a negative and significant effect of economic growth. The study recommended that it is essential to foster a sustainable economy by channeling financial resources into productive investment activities that promote economic growth. It further recommended that the government should undertake further initiatives to deepen the financial sector in alignment with global development trends.