Financial Development and Economic Growth Nexus in Nigeria | Abstract

Global Journal of Commerce & Management Perspective
Open Access

ISSN: 2319-7285


Financial Development and Economic Growth Nexus in Nigeria

Oluwole and Foluso Ololade

This research work focuses on the effect of money and capital market on Financial Development and Economic Growth in Nigeria. It employs an Ordinary Least Square (OLS) method of analyzing the secondary data covering a period of 1981 to 2010. The Findings shows that Banking system Credit to the Domestic Economy, CDMB and Money Supply, M2 (money market variables) are significant having effect on the GDP(Economic Growth) while Value of Deals, VOD and Market Capitalization, MCAP (Capital Market variables) are not significant. The study thus concludes that: Government should ensure that there is strict compliance of all the Financial Institutions in giving short term loans and advances to their customers. Also the capital market should be built by raising new and flexible long term financial products to increase the supply of securities because it serves as the major source of long term financing for investment and development.