An Appraisal Of The Impact Of Financial Development On Economic Growth Of Nigeria (1970-2011)

ABSTRACT

 This work examines the impact of financial intermediation and financial development variables on economic growth of Nigeria. To achieve the objective of this study, data was collected from secondary sources, which includes: Central Bank of Nigeria (CBN), National Bureau of Statistics, Statistical Bulletin and national directorate of employment were employed on time series data from 1970-20 11 and the results revealed that credit to private sector (CPS), money supply (M2), and monetization variation are positively related to economic growth and currency ratio is negatively related to economic growth, the result also show that credit to private sector has significant impact on economic growth, money supply (M2) and monetization variation have no significant impact on economic growth, and currency ratio has significant impact on economic growth. This work recommends that monetary authorities should introduce reform to reduce currency ratio that will enable financial intermediation provide the needed funds for economic growth of Nigeria.