Financial Inter-mediation Indicators and Economic Growth, the Nigerian Experience (1990 – 2018)

Abstract

This study examined financial inter-mediation indicators on the economic growth, The Nigerian perspective from 1990 – 2018. The data for this work were sourced from CBN statistical bulletin. This study considered credit to private sector, broad money supply, interest rate and lending rate as the independent variables while Real Gross Domestic Product (RDGP) as the dependent variable. Vector error correction model were employed for this study and Eview 10 was used for the analysis. The results of the analysis show that there is a significant relationship between financial inter-mediation indicators and economic growth. Based on the result the following recommendations were made, federal government together with monetary authorities should enforce a policy that will mandate financial institutions to lower their lending and interest rates to encourage the most productive sectors of the economy to do better. Secondly, the floating of money supply into the economy should be strictly monitored to avoid inflation which will endanger economic growth. Finally, accessible credit facilities should be granted to the viable and high sensitive sectors that drive economic growth.