Empirical Assessment of Selected Financial Indicators and Nigeria Gross Domestic Product

Chigozie Kelechi Acha, Chinaegbomkpa Umezurike


This study undertook an overview of the financial sector and considered the contributions of some selected financial indicators to the gross domestic product (GDP) in Nigeria. Data were obtained from the statistical bulletin of the Central Bank of Nigeria (CBN) for the period, 1990-2016. The variables considered include: Lending rate (LR), Real Interest rate (RIR), Money Supply (M2), Credit to Private Sector (CPS), Inflation rate (IR). Multiple regression analysis method was used to analyze the data. From the analysis, it is observed that credit to private sector (CPS) has a positive relationship with the GDP whereas the rest had negative relationship with the GDP. Further analysis using analysis of variance (ANOVA) showed that one of the factors (CPS) is significant. From the result obtained, it is recommended that the private sector should be given more access to credit. This will help in improving the economy since it has shown to have a positive relationship with the GDP.

Keywords: Inflation; Lending rate; Money supply; Gross Domestic Product

JEL Codes: E43, E60, O40

Full Text:



Acha, C. K., & Acha I. A. (2015) Smooth Bootstrap Methods on External Sector Statistics. International Journal of Econometrics and Financial Management, 3(3), 115–120.

Acha, I. A., & Acha, C. K. (2011). Interest Rates in Nigeria: An Analytical Perspective. Research Journal of Finance and Accounting, 2(3), 71-81.

Babak, M.P., Navid. B., & Shahriar, E. (2012). Study of Association between Monetary policy and GDP: An Econometric Perspective in Malaysia. Australian journal of Basic and applied Sciences, 6(8), 307-315.

Gujarati, D. N. (2004). Basic Econometrics, Fourth Edition. The MCGraw-Hill Companies.

Kothari, C. R., & Gaurav, G. (2014). Research Methodology: Methods and Techniques third edition. New Age International (p) Ltd., publishers.

Kelikume, M. (2015). Economic Development and Growth in Nigeria. Retrieved from https://www.dailytrust.com.ng/news/saturday-comments/economic-development-and-growth-in-nigeria/123963.html

Lucky, E. U., & Lyndon, M.E. (2016). Macro Economics Analysis of the Relationship Between Interest Rate, Economic Growth and Bank Lending Rate in Nigeria. European Journal of Business and Innovation Research, 4(3), 29-37.

Nwite, S.C. (2014). Determinants of Financial Intermediation and Its Implications

on Economic Growth in Nigeria. British Journal of Marketing Studies, 3(9),.49-56.

Usifo, V. (2015). 11 Factors Affecting Economic Growth in Nigeria. Retrieved from InfoGuideNigeria.com. htm accessed 4th January 2018

Olaoye, F. O. (2016). Empirical Analysis of the Nexus between Budget Implementation and Economic Development in Nigeria. Global Journal of management and business research: D accounting and Auditing, 16(2).

Otavio, R.M, Bernardus, F.N., & Gustavo, R.O. (2011). Modeling and forecasting a firm’s financial statement with a VAR-VECM model. Brazilian Business Review, 8(3), 20-29

Uwakaeme, O. S. (2015). Economic Growth in Nigeria: An Empirical Investigation of Determinants and Causal Relationship (1980 – 2012). American Journal of Economics, 5(1), 9-20.

DOI: http://dx.doi.org/10.17977/um051v1i12018p47-55


  • There are currently no refbacks.

This journal is indexed by:


ISSN: 2621-5918

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.