Banking, Money Supply and Economic Growth: An Empirical Analysis from Nigeria

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Empirical analysis reveals money supply and banking positively impact GDP growth in Nigeria, indicating potential for economic development.

Economic growth is notably influenced by money supply and banking variables, with a significant long-term impact observed.
A 1% increase in outstanding deposits at commercial banks correlates with a 23.92% increase in GDP over the long run.
The auto-regressive distributed lag model was employed for analysis of data from 1986 to 2021 sourced from World Development Indicators.
Findings support the intermediation theory of banking, showing that banking plays a crucial role in fostering economic growth.

Ahmed Oluwatobi Adekunle (2025) studied this question.

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Empirical analysis reveals money supply and banking positively impact GDP growth in Nigeria, indicating potential for economic development.