European Journal of Accounting, Finance and Investment

Financial Sector Development And Export Growth In Nigeria

URUAKPA, PETER CHINYERE

Department of Banking & Finance, Abia State University, Uturu - Nigeria

Abstract

This study is on financial sector development and export growth in Nigeria. The following objectives were set out: to determine the extent financial deepening impacts on export sector growth in Nigeria; to find out the impact of credit allocation to export on growth of the sector; determine the relationship between lending rate and export sector development in Nigeria and assess the impact of credit to the private sector on export growth in Nigeria. Data for the study was collected from CBN Statistical Bulletin from 1986-2020 while regression analysis through the e-view package was applied. Findings showed that financial deepening has positive and direct relationship with export output. Credit allocation to export sector has negative relationship with export output. Lending rate has negative relationship with export output. Credit to the private sector has positive and significant relationship with export output.  The granger causality test shows that only credit allocation to the export sector has granger causality relationship with the export sector. It concludes that financial sector development has contributed to export sector growth in Nigeria. The study recommends that Central Bank of Nigeria moderates its money supply to ensure it impacts positively on the export sector and reintroduce its credit allocation ceiling policy to the export sector.