Abstract:

The importance of the financial sector as a major contributor to economic growth in Nigeria continues to fascinate and intrigue economists, government officials and policy makers. However, this relationship between the financial sector and growth has not been given serious consideration as to how it can be harnessed and utilized effectively, considering its importance to the nation’s desire to achieve financial inclusion and sustainable development. This paper examines the relationship in Nigeria for the period from 1986 to 2013. Exchange rate, interest rate and private sector credit were adopted as proxies for financial development and inflation was introduced as a control variable (independent variables) while GDP was adopted as the dependent variable.