NEXUS BETWEEN FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA
NEXUS BETWEEN FINANCIAL SECTOR DEVELOPMENT AND
ECONOMIC GROWTH IN NIGERIA
Harrison Vincent, S.A.S Aruwa and Gimba John Toro
This study evaluates the nexus between financial sector development and economic
growth in Nigeria for the period 1986 to 2016. Secondary data were extracted from
Central Bank of Nigeria statistical bulletin 2016. The dependent variable is Economic
growth which was proxy by GDP and the independent variable is financial sector
development which was proxy by credit to private sector and market capitalization while
inflation rate as control variable. Expo-facto research design was thus used. The study
applied multiple regression model of analysis using Eview statistical package version 8.
It was found that financial sector development has positive and significant relationship
with economic growth in the period of study. The study recommends that Central Bank of
Nigeria (CBN) ensure effective compliance with its credit control policy which direct
credit to more productive private sector activities and the Securities and Exchange
Commission formulating strategies to deepen the Nigerian Stock market.