FINANCIAL INNOVATION NEXUS AND NIGERIA ECONOMIC DEVELOPMENT; AN ECONOMETRIC ANALYSIS
Abstract
Between 2010 and 2023, the study examined the connection between financial innovation and Nigeria’s economic growth. The Central Bank of Nigeria’s (CBN) Statistical Bulletin on various topics provided data for this research. A measure of financial innovation, online transfer, automated teller machines, mobility of payments, and points of sale are the independent variables in this study, with the Real Gross Domestic Product (RGDP) of Nigeria serving as the dependent variable. The unit root test was used in the study to confirm the stationarity of the variables, and the Johanson Co-integration test was used to ascertain whether the variables had a long-term relationship. The findings revealed a strong and favorable correlation between financial innovation and Nigeria’s economic growth. This finding aligns with Goldsmith's (1969) documentation of the correlation between financial development and economic growth. In order to ensure financial inclusion and promote economic growth, the study made several recommendations, including (a) that the government continue to install more Automated Teller Machines (ATM), particularly in urban and rural areas; (b) that more establishments offer point-of-sale (POS) devices to support their business operations; and (c) that the regulatory body allocate more funds to public education about e-payment channel use.
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Point of Sales, Financial Development, Automated Teller Machine, Internet Transfer and Real Gross Domestic ProductDownloads
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