ECONOMIC GROWTH IN NIGERIA

The study is on capital market development and economic growth in Nigeria. The goal of the study is to ascertain the impact of capital market performance on economic growth in Nigeria. The study adopted the fully modified ordinary least square (FMOLS). The outcome of the study revealed that all capital market indicators (MCAP, VOT, VAT) except All share index (ASI) are positive and significant with economic growth in Nigeria. The study however recommends that market capitalization must be improved by encouraging more foreign investors to participate in the market, this will increase new issues which will automatically increase economic growth of Nigeria.

In an economy, some interest groups such as households, firms, public and private sectors often collaborate and participate in the process of economic development. However, the government sector plays a predominant role in achieving the desired changes in the structure of any economy. Indeed, the uniqueness of public sector arises from the fact that, apart from being part of the economy the government sector plays a decisive role in attaining
macroeconomic objectives of stability, growth and development, through a package of economic policy measures and regulatory framework (Sackey & Ejah, 2014). For the Nigerian government to effectively carry out its primary function and other subsidiary functions, she requires adequate funding (Abomaye-Nimenibo, Williams &Friday, 2018). Tax is therefore a major source of government revenue all over the world. It is an opportunity for the government to collect revenue needed to discharge its pressing obligations. It has a bearing on the Gross Domestic Product (GDP), which is the standard indicator for measuring the economic well-being of a nation. (Okafor, 2012) and Sanni (2007), advocated the use of tax as an instrument of social engineering, to stimulate general and/or sectoral economic growth. A tax system offers itself as one of the most effective means of mobilizing a nation’s internal resources and tends itself toward creating an environment conducive to the promotion of economic growth (Azubike, 2009)

This study investigates the relationship between financial inclusion and economic growth in Nigeria for the period 2000 to 2024. Financial inclusion was measured using the number of bank branches per 100,000 adults, automated teller machines (ATMs) per 100,000 adults, borrowers from commercial banks per 1,000 adults, and current account holders per 1,000 adults, while economic growth was proxied by the real gross domestic product (RGDP) growth rate. The study relied on secondary data obtained from credible sources, including the Central Bank of Nigeria, Nigeria Inter-Bank Settlement System, and World Bank Development Indicators. Data were analyzed using descriptive statistics, correlation analysis, panel unit root tests, Johansen Fisher Panel Cointegration Test, and Panel Fully Modified Least Squares (FMOLS) regression. The results indicate that the number of bank branches and bank borrowers have a significant positive impact on economic growth, whereas ATMs and current account holders exhibit a significant negative effect. These findings suggest that while expanding physical banking infrastructure and credit access support economic growth, digital banking access and current account proliferation may not automatically translate into growth unless accompanied by targeted financial inclusion strategies. The study concludes that effective policy interventions are required to optimize the benefits of financial inclusion and recommends the strategic deployment of banking resources, particularly to underserved populations, to enhance Nigeria’s economic performance.

This study examines the impact of urbanization on economic growth in Nigeria. The
objectives here are to assess the predictive relationship between urban population growth and Nigeria’s real GDP from 1990 to 2024, to examine the short-run and long-run effects of urbanization on Nigeria’s industrial output using econometric models, to investigate how urban infrastructure factors (e.g., electricity access, road density) mediate the impact of urbanization on economic performance across major Nigerian cities.This study employs the auto regressive distribution lag (ARDL) model to analyze the impact of urbanization quantity, urbanization concentration, infrastructure, human capital and unemployment rate on urbanization and its effect on economic growth in Nigeria. The study made use of time series data from 1990 to 2024 with data sourced from the world bank world development indicator.From the findings of this study, it shows that there is a long run equilibrium relationship between economic growth and its explanatory variables, while excessive concentration in the cities negatively affect growth in the long run, education shows a negative short run effect but is insignificant in the long run while infrastructure when combined with urbanization especially in large cities enhances growth.Overall, the results highlight urbanization as a key driver of growth, with infrastructure, education, and labour market conditions shaping its effectiveness.