ABSTRACT

This empirical study examined the effect of financial sector development on the economic growth in Nigeria 1993-2016. The study made use of secondary data, sourced for a period of 24 years. The ordinary least squares multiple regression analytical framework was used in the analysis. Financial deepening was proxied by broad money supply/GDP ratio, alongside market capitalization/GDP ratio and private sector credit/GDP ratio, while real gross domestic product was used to measure economic growth. The results revealed that market capitalization and private sector credit has a positive effect on economic growth while financial deepening (broad money/GDP) had a positive and insignificant effect on economic growth of Nigeria.  Consequently, it was recommended among other things that Nigeria should place greater emphasis on financial sector development with special focus on capital markets development to ensure economic growth. 

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of Contents vi

List of Tables ix

Abstract x

CHAPTER 1: INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of the Problem 3

1.3 Objectives of the Study  4

1.4 Research Questions 4

1.5 Research Hypotheses 5

1.6 Significance of the Study  5

1.7 Scope of the Study  6

1.8 Limitations of the Study 6

1.9 Definition of Terms 6

CHAPTER 2: REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework 8

2.1.1 Concept of Financial Development 8

2.1.2 Overview of the Nigerian Financial System 12

2.1.2 Central Bank of Nigeria 15

2.1.3 Commercial Banks 17

2.1.4 Nature of Deposit Money Banking In Nigeria 18

2.1.5 Overview of the Nigerian Capital Market 20

2.1.6 Nigerian Security and Exchange Commission 21

2.1.7 Performance of the Financial Sector 23

2.1.8 Concept of Economic Growth 24

2.1.9 Financial Sector Development and Economic Growth 26

2.2 Theoretical Review 27

2.3 Empirical Review 28

2.4 Summary of Literature 33

2.4.1 Gap in the literature 34

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research Design  36

3.2 Area of Study 36

3.3 Sources of Data Collection 36

3.4 Model Specification 36

3.5 Description of the Research Variables 37

3.5 Method of Data Analysis 38

CHAPTER 4: DATA PRESENTATION AND ANALYSIS

4.1 Presentation of Data 40

4.2  Data Analysis and Discussion of Results 41

4.3  Regression Analysis 42

4.3.1 Discussion of Findings and Hypotheses Testing 43

CHAPTER 5: SUMMARY CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings 45

5.2 Conclusion 45

5.3 Recommendations 46

REFERENCES

APPENDIX