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Language, Literature and Communication Journal

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HomeLLCJ Vol. 14, No. 2 FINANCIAL SECTOR EFFICIENCY AND ECONOMIC GROWTH N…
📄 Research Article LLCJ Vol. 14, No. 2 (2026)

FINANCIAL SECTOR EFFICIENCY AND ECONOMIC GROWTH NEXUS IN NIGERIA

Izuchukwu Ogbodo 1 & Jonathan Ibekwe Okolie 2 & Ozoemena Christian Okafor 3
1 Department of Banking and Finance, Enugu State University of Science and Technology, Enugu
2 Department of Business Administration, Enugu State University of Science and Technology, Esut
3 Department of Marketing, Enugu State University of Science and Technology, Enugu
Language, Literature and Communication Journal, Vol. 14, No. 2 (2026), pp. 44-53 | DOI: https://doi.org/10.5281/zenodo.20086339
Open Access Peer Reviewed Research Article

Abstract

This study investigated the effect of financial sector indicators on economic growth in Nigeria, 1986-2024. The specific objectives were to: examine the effect of credit to private sector, ascertain the effect of interest rate on real gross domestic product (RGDP)in Nigeria. Ex-post facto design was adopted for this study. Annual time series data for 38 years (1986-2024) were sourced from Central Bank of Nigeria Statistical Bulletin. A preliminary test was conducted using Descriptive Statistics and Augmented Dickey-Fuller to ensure data stationarity. Autoregressive Distributed Lag Model (ARDL) regression technique was used to estimate the variables. Decisions were based on a 5% level of significance. Results showed that credit to private sector had non-significant and positive effect on gross domestic product (GDP)in Nigeria (coff = 0.046304, pv = 0.4675>0.05), interest rate had significant and positive effect on gross domestic product (GDP)in Nigeria (coff = 0.246753, pv 0.0169<0.05). Based on findings, it was recommended that although credit to private sector was found to had non-significant and positive effect on real gross domestic product (RGDP), maintaining low and stable credit to private sector remains vital. Policymakers should continue implementing effective credit to private sector policies to control investment and prevent potential negative effects on economic growth and despite the significant effect of interest rates on RGDP, interest rate policies should not be ignored.
Keywords: ["Financial Sector Indicators","Economic Growth","Credit to Private Sector","Interest Rate","Real Gross Domestic Product"]
📑 How to Cite This Article
APA 7th Edition:
Izuchukwu Ogbodo, Jonathan Ibekwe Okolie, Ozoemena Christian Okafor (2026). FINANCIAL SECTOR EFFICIENCY AND ECONOMIC GROWTH NEXUS IN NIGERIA. Language, Literature and Communication Journal, 14(2), 44-53. https://doi.org/https://doi.org/10.5281/zenodo.20086339
Vancouver Style:
Izuchukwu Ogbodo, Jonathan Ibekwe Okolie, Ozoemena Christian Okafor. FINANCIAL SECTOR EFFICIENCY AND ECONOMIC GROWTH NEXUS IN NIGERIA. Lang. Lit. Commun. J.. 2026;14(2):44-53. DOI: https://doi.org/10.5281/zenodo.20086339
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