Abstract
Financial sector development plays a crucial role in economic growth by facilitating capital mobilization and channeling funds to productive investments. This study investigates the impact of financial sector developments on Nigeria's economic growth rate from 1981-2021. Specific objectives include assessing the impact of bank credit to the private sector, bank money supply, capital market stock value, and total domestic saving on economic growth. Employing a multiple regression method using the autoregressive distributed lag model (ARDL), the study reveals that while the ratio of credit to the private sector had a non-significant positive impact, the ratio of broad money supply, total domestic savings, and stock market value positively and significantly impacted economic growth. The study concludes that financial sector development significantly impacts economic activities in Nigeria. Recommendations include government initiatives to provide credit to small and medium enterprises, stabilization of exchange rates, effective inflation control, and efficient regulation of capital market activities to enhance productivity and overall economic growth.