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Financial Sector Reforms and the Performance of the Nigerian Economy

Author

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  • T.P.Ogun
  • A.E.Akinlo

Abstract

Using descriptive statistics and Vector Autoregressive Model, we investigated the impact of financial sector reforms on the performance of the Nigerian economy. The paper is justified given the need to provide empirical evidence on the effectiveness of financial reform in promoting saving, investment and growth. The paper found that the means of performance indicators - saving rate, investment ratio and growth of real GDP, were very low relative to pre-reform period and their correlation with financial indicators were mostly low or negative under reform. Evidence from the VAR analysis also showed that shocks to financial indicators either had negative or insignificant positive effect on the saving rate investment and growth during reform. Complementing financial reforms with structural reforms, therefore, is necessary to promote growth in Nigeria .

Suggested Citation

  • T.P.Ogun & A.E.Akinlo, 2011. "Financial Sector Reforms and the Performance of the Nigerian Economy," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 3(1), pages 047-060, June.
    • Handle: RePEc:rfb:journl:v:03:y:2011:i:1:p:047-060
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    References listed on IDEAS

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    Cited by:

    1. Enobong Udoh & Eghosa Osagie, 2017. "Empirical Analysis of the Impact of Financial Sector Reforms on Savings Mobilization in Nigeria," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(63), pages 53-71, March.
    2. Felix Ademola Adeyefa & Marshal Tomola Obamuyi & Olawale Femi Kayode & Owoputi,James Ayodele, 2015. "The Effects of Bank Distress on The Nigerian Economy," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(3), pages 57-68, July.
    3. Abiola Ayopo Babajide & Lawal Adedoyin Ishola & Adetiloye Kehinde Adekunle & Bede Uzoma Achugamonu & Akinjare Victoria Bosede, 2021. "Financial Sector Reform and Economic Development in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(2), pages 160-172, February.
    4. Dr. Aranilyar C. Isukul & Dr. John J. Chizea & Dr. Ikechi Kelechi Agbugba, . "Economic Diversification in Nigeria: Lessons from other Countries of Africa," Journal of Economic and Sustainable Growth 3, Office Of The Chief Economist, Development Bank of Nigeria.
    5. Samson E. Edo, 2012. "Performance of Liabilities Accruing from Liberalization of the Banking Sector in Nigeria," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 4(2), pages 135-146, December.
    6. Philip Olawale Odewole & Rafiu Oyesola Salawu, 2020. "The Implementation of Budget Reform and the Level of Compliance among the Public Sector Entities in Nigeria," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 9(2), pages 1-19, October.
    7. Martina Chinazom Okorie & David Onyinyechi Agu, 2015. "Does Banking Sector Reform Buy Efficiency Of Banking Sector Operations? ? Evidence from Recent Nigerias Banking Sector Reforms," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 264-278, February.

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