DEPARTMENT OF FINANCE

The study examined the effect of financial inclusion on economic growth in Nigeria spanning periods from 1994 to 2023 based on the accessibility of data. Four hypotheses were raised and evaluated using the fully modified ordinary least squares estimator. Based on the analysis conducted, the following findings were made that: the number of bank branches per 100,000 adults has a statistically significant but negative impact on economic growth in Nigeria; the number of deposit accounts with commercial banks per 1,000 adults does not significantly impact economic growth in Nigeria; the proportion of outstanding loans from commercial banks as a percentage of GDP does not have a significant effect on economic growth in Nigeria; and the total volume of mobile money transactions as a percentage of GDP has a statistically significant and positive impact on economic growth in Nigeria. Thus, it was recommended that: policymakers and financial institutions should prioritize investments in mobile and digital banking infrastructure over expanding physical bank branches; financial institutions should implement strategies to encourage the active use of deposit accounts; financial institutions should focus on enhancing access to productive credit for individuals and small businesses; and policymakers and financial institutions should further develop mobile money ecosystems.

This study examined determinants of foreign portfolio investment in Nigeria. There is need for the present reforms going on in the Nigeria capital market to be sustained especially in the area of investor’s portfolio, infrastructural development and accounting disclosure requirements. In the light of this a number of questions arose as to whether there is significant relationship between gross domestic product, interest rate exchange rate, trade openness and foreign portfolio investment. Therefore, the research design adopted for this work is the ex post facto research design. The population of this study consists of Nigeria macroeconomics and capital market system as represented by net foreign portfolio investment, Gross Domestic Product, exchange, interest rate and trade openness from 1994-2024. The findings revealed that foreign portfolio investments (FPI) and gross domestic product (GDP) is positive and but not statistically significant. The relationship between foreign portfolio investment and foreign exchange rate is positive but not statistically significant. However, the relationship between interest rate (INTR) and foreign portfolio investments (FPI) is positive and statistically significant. Expectedly high interest rate in a domestic economy serves as a major attraction to foreign investors to invest in the local economy. The study recommended among others that monetary policy should promote stable domestic interest as a priority objective to attract foreign portfolio investment.

This study investigated the impact of key macroeconomic variables on stock market performance in Nigeria over the period 1990 to 2023. Specifically, the study examines the influence of inflation rate, unemployment rate, GDP growth, interest rate, exchange rate, and crude oil prices on stock market capitalization, which serves as a proxy for market performance. Employing the Fully Modified Ordinary Least Squares (FMOLS) technique well-suited for addressing cointegration and correcting for endogeneity and serial correlation, the study found that inflation has a positive and statistically significant effect on stock market performance, while unemployment exerts a significant negative impact. In contrast, GDP growth, interest rate, exchange rate, and crude oil price exhibit statistically insignificant effects. These results suggest that while some macroeconomic indicators directly influence market performance, others may be mediated through structural and institutional factors. The study recommended targeted inflation control, employment generation, economic diversification, and coordinated macroeconomic policy reforms to strengthen the responsiveness of Nigeria’s stock market to economic fundamentals

This study examined the effect of financial technology and financial inclusion on economic growth in selected sub-Saharan African (SSA) countries. The specific objectives of the study are to examine the effect of internet penetration and the influence of financial technology application on economic growth in selected SSA countries, while also examine the role of financial access, the extent financial usage impact and how financial quality impact on the economic growth in selected SSA countries. The method of analysis adopted in the study is the panel non-linear autoregressive distributed lags (PNARDL) approach which was chosen because it allows for the capture of the effect of potential asymmetries in the independent variables on the dependent variable. It therefore captures nonlinear dynamics that standard linear models might miss. With stratified sampling technique and the use of data filtering approach 29 countries were included in the study based on data availability, depth of the Fintec space and regionalization within the period 2014 to 2023. The study found that the internet penetration and financial technology significantly promotes economic growth in SSA countries. Similarly, financial access and financial quality were also found to positively promote economic growth while the reverse was the case for financial usage which was found to exhibit a negative relationship towards economic growth. In addition, the asymmetric effects of ICT infrastructure and Fintec are found to be much larger than the beneficial effects of their positive shocks with the coefficients of mobile banking (MBK) and POS agency positive but significant values of 0.185 and 0.002 respectively dwarfed by their respective coefficient of negative changes of -0.721 and -0.172. This result therefore calls for a combination of measures in addressing the digital deficits in SSA countries and also encouraging financial technology and inclusion while ensuring that digital services are stabilised and efficiently used over time to prevent costly disruptions.

This study examines the effect of external debt on economic growth in Nigeria for the period 2000–2024. The specific objectives were to investigate the effect of external debt stock on the Nigerian economy, determine the effect of external debt service payments on economic growth, and examine the effect of exchange rate on the economy. The study adopted an ex-post facto research design, relying on secondary data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, Debt Management Office (DMO) Annual Reports, and National Bureau of Statistics (NBS). Data were analyzed using econometric techniques with the aid of EViews software. The empirical results revealed that external debt stock has a positive and significant effect on economic growth in Nigeria, indicating that judicious borrowing can enhance economic performance when appropriately managed. However, external debt servicing exhibited a negative but statistically insignificant relationship with economic growth, suggesting that high debt servicing obligations may crowd out funds meant for productive investment. Additionally, the exchange rate was found to have a positive and significant relationship with economic growth during the study period. The study concludes that external debt, when effectively utilized and prudently managed, can contribute positively to economic growth in Nigeria. It therefore recommends that policymakers should prioritize the efficient management and productive use of borrowed funds, invest in fixed assets that promote long-term growth, and ensure that regulatory authorities monitor the country’s debt sustainability and repayment capacity to avoid debt distress.

This study examines the impact of fintech innovation on financial development in Nigeria, with a focus on the mediating role of green finance. Fintech innovations, such as digital payments, mobile banking, and peer-to-peer lending, have revolutionized the financial sector, enhancing financial inclusion and market efficiency. Meanwhile, green finance, a relatively emerging concept in Nigeria, seeks to channel financial resources toward environmentally sustainable projects. This study aims to assess the interplay between these variables and their collective influence on the country's financial ecosystem. Using a structured questionnaire distributed to 88 respondents, data was collected from fintech operators, financial institution employees, and stakeholders in green finance. The analysis employed descriptive statistics, regression models, and mediation analysis to evaluate the relationships among fintech innovation, financial development, and green finance. The findings reveal that fintech innovation significantly contributes to financial development in Nigeria, primarily by improving access to financial services and reducing transaction costs. Green finance, while still in its nascent stage, positively influences financial development by promoting sustainable investments. Additionally, the study confirms that green finance partially mediates the relationship between fintech innovation and financial development, amplifying the impact of fintech on sustainability-oriented financial initiatives. However, challenges such as limited data availability, regulatory gaps, and low public awareness of green finance hinder its full potential. The study concludes by recommending stronger regulatory frameworks, increased public education on green finance, and greater collaboration between fintech companies and policymakers to foster sustainable financial growth in Nigeria.

This study examined the relationship between digital financial services and financial inclusion in Nigeria. The study, anchored on the vulnerable group theory, adopted the ex-post facto research design hence data were collected from secondary sources. Data for the study were obtained from the Statistical Bulletin of Central Bank of Nigeria for the period of 2010- 2023. The Ordinary Least Square (OLS) was used to run the regression analysis after carrying out several diagnostic checks such as variance inflation factor, cointegration tests, and unit root tests. Findings of the study showed that agency banking, Automated Teller Machine transactions, and mobile banking have a significant positive relationship with financial inclusion in Nigeria. The study also established a negative but not significant relationship between web payments, unstructured supplementary service data (USSD) transactions and financial inclusion in Nigeria. The study concluded that digital financial services positively contributed to the level of financial inclusion in Nigeria. The study recommends amongst others that banks should increase the Automated Teller Machine points to reach out to the interior villages and rural areas that are excluded from the financial services

The study examines the effect of monetary policy tools on deposit money banks performance in Nigeria for the period 2014-2023. The study employed the descriptive statistics, correlation analysis and the Panel Least Square (PLS) methodology to analyze the annual time series data sourced from CBN Statistical Bulletin. The findings specifically found that monetary policy rate has significant negative effect on deposit money banks performance. Cash reserve did not significantly affect deposit money banks performance during the studied period. Money supply has a significant positive effect on deposit money banks performance in Nigeria. The study concludes that monetary policy tools significantly influences deposit money banks performance in Nigeria during the studied period. The study recommends that regulatory authority (CBN) should reduce the current monetary policy rate in order to reverse its negative effect on deposit
money banks performance. Increase in money supply improves the performance of deposit money banks. Thus, increase in money supply should be maintained within acceptable threshold to enable the deposit money banks to sustain its positive effect on their performance.

This study investigates the impact of real estate financing on economic growth in Nigeria, by analyzing its effects on Nigeria's Gross Domestic Product (GDP). Specifically, the study aims to evaluate the contribution of FDI, mortgage financing, and commercial real estate loans to the nation’s economic performance, providing actionable insights for policymakers and stakeholders. A longitudinal, ex-post facto research design was adopted, utilizing panel data from 2014 to 2023. Data were sourced from the Central Bank of Nigeria (CBN), the National Bureau of Statistics
(NBS), and reports from financial institutions and real estate firms. Panel data analysis was employed to capture both cross-sectional and time-specific effects, ensuring a robust assessment of the relationships between the variables. The findings reveal that all three dimensions of real estate financing significantly contribute to Nigeria's economic growth. FDI in real estate fosters capital inflow, infrastructure development, and job creation. Mortgage financing enhances housing accessibility and stimulates economic activity in the construction and housing sectors. Commercial real estate loans enable business expansion, infrastructure development, and increased urbanization, further boosting GDP. Based on these findings, the study recommends that the Nigerian government create a conducive environment for FDI by simplifying regulatory processes, ensuring macroeconomic stability, and offering investment incentives. Policies should also focus on improving access to affordable mortgage financing through innovative financing models, reduced interest rates, and expanded credit availability. Additionally, financial institutions should be incentivized to provide more commercial real estate loans by reducing associated risks and offering tax benefits for such lending

This study examines the impact of fintech innovation on financial development in Nigeria, with a focus on the mediating role of green finance. Fintech innovations, such as digital payments, mobile banking, and peer-to-peer lending, have revolutionized the financial sector, enhancing financial inclusion and market efficiency. Meanwhile, green finance, a relatively emerging concept in Nigeria, seeks to channel financial resources toward environmentally sustainable projects. This study aims to assess the interplay between these variables and their collective influence on the country's financial ecosystem. Using a structured questionnaire distributed to 88 respondents, data was collected from fintech operators, financial institution employees, and stakeholders in green finance. The analysis employed descriptive statistics, regression models, and mediation analysis to evaluate the relationships among fintech innovation, financial development, and green finance. The findings reveal that fintech innovation significantly contributes to financial development in Nigeria, primarily by improving access to financial services and reducing transaction costs. Green finance, while still in its nascent stage, positively influences financial development by promoting sustainable investments. Additionally, the study confirms that green finance partially mediates the relationship between fintech innovation and financial development, amplifying the impact of fintech on sustainability-oriented financial initiatives. However, challenges such as limited data availability, regulatory gaps, and low public awareness of green finance hinder its full potential. The study concludes by recommending stronger regulatory frameworks, increased public education on green finance, and greater collaboration between fintech companies and policymakers to foster sustainable financial growth in Nigeria.