FINANCIAL SYSTEM DEVELOPMENT AND THE GROWTH OF THE NIGERIAN ECONOMY

ABSTRACT

This study reviewed financial system development and the growth of the Nigerian economy, over the period of 12 years (2010- 2022). The study’s objective is to examine the relationship between the financial system development and growth in the Nigerian economy, to consider the impact of market capitalization on the Nigerian economic growth, and to access the effect of inflation on the gross domestic product of the Nigerian economy. The target population for this research is the Nigeria economy, the study adopted a census sampling technique where the population is the same as the sample size. The study utilized the causal relationship research design and used the ordinary least squares (OLS) econometric approach. The hypotheses tested revealed that there is a significant relationship between market capitalization, ratio of private sector to gross domestic product, inflation rate and market capitalization and economic growth in Nigeria. This study serves as a call to action for policymakers, stakeholders, and researchers alike to prioritize and support initiatives aimed at advancing the development of Nigeria's financial ecosystem.