ABSTRACT

An Econometric Analysis ofthe impact offinancial deepening on aggregate welfare in Nigeria using the income per capital, money supply,Private creditsector, gross national savings as the constituent variables. This study is an economic analysis which examined the impact offinancial deepening on aggregate welfare in Nigeria over the period of 1981 to 2018, utilizing secondary source data gotten from the World Development Indicator ofthe World Bank and the CBN statistical Bulletin which were subsequently evaluated with the Ordinary least square estimation techniques, the study discovered that the growth rate of money supply showed a positive and significant influence on per capita income or income per capita which is in line with the study s expectation based on existing literatures, while private sector credit (PSC) exhibited a positive and significant influence on gross national saving (GNS), conforming to the study a priori expectations cemented on theoretical postulations and empirical studies. Also, the study also examined the effect offinancial savings on consumption rate in Nigeria andfound out that an increase infinancial savings significantly increases consumption rate in Nigeria. It recommends Monetary authorities should implement policies geared towards increasing money supply to achieve capitalflows to the real sector ofthe economy as this will increase output andper capita income also Central Bank ofNigeria shouldfurther compel deposit money banks to grant more credit facilities to entrepreneurs (private sector) without collaterals to enable them invest in viable projects