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Journals / Journal of Economics Finance and Accounting / 2025 / Volume: 12 Issue: 2

FINANCIAL INTERMEDIATION MODELLING FOR ECONOMIC DEVELOPMENT IN NIGERIA: INSIGHT FROM ARDL

Raymond Adegboyega(British American University)0000-0002-8067-3410
Pages
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Publication Date
2025-12-31
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Findings- The overall results show that both the short and long-run relationships exist between financial intermediation and economic development in Nigeria.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Purpose- The shallowness of Nigeria’s financial system hinders the financial intermediation process.
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Key Findings & Data:Methodology- The study utilized data spanning from 1981 to 2023, sourced from the Central Bank of Nigeria (CBN) statistical bulletin and World Bank Data base, and employed the Autoregressive Distributed Lag (ARDL) method of analysis.
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Conclusion & Impact:Findings- The overall results show that both the short and long-run relationships exist between financial intermediation and economic development in Nigeria.
🔬Design:Research Article
📍Scope:2023 Verileri
⚙️Variables:Economic development · financial deepening · financial intermediation

Abstract

Purpose- The shallowness of Nigeria’s financial system hinders the financial intermediation process. Thereby impeding economic development. This observation provides the rationale for an examination of the impact of financial intermediation on economic development in Nigeria. Methodology- The study utilized data spanning from 1981 to 2023, sourced from the Central Bank of Nigeria (CBN) statistical bulletin and World Bank Data base, and employed the Autoregressive Distributed Lag (ARDL) method of analysis. Findings- The overall results show that both the short and long-run relationships exist between financial intermediation and economic development in Nigeria. The coefficient of ECM of -3.855712 which is 1% significance level, indicating a strong relationship between financial intermediation and economic development. Also, this very high speed of adjustment indicates that 385.57% adjustment back each year to long-run equilibrium after a shock in the short-run. Conclusion- The study concluded that for proper development of financial system that can promote effective financial intermediation, it is necessary to encourage higher levels of savings and investment, which will, in turn, enhance the efficiency of capital accumulation. Among its recommendations, the study highlighted the need to improve and extend credit facilities to the private sector of the economy.

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Cite This Article

Adegboyega, R. (2025). FINANCIAL INTERMEDIATION MODELLING FOR ECONOMIC DEVELOPMENT IN NIGERIA: INSIGHT FROM ARDL. Journal of Economics Finance and Accounting, Volume: 12 Issue: 2. https://doi.org/10.17261/Pressacademia.2025.2006

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