Main Article Content
The study examined the impact of financial sector development on economic growth using selected banking sector variables such as broad money supply, total bank credits, total bank liabilities and private sector credits in Nigeria from 1981 to 2021. The supporting theoretical argument behind the study is that development of the financial sector will positively impact economic growth. Relevant econometric techniques such as unit root, OLS regression, autoregressive distributed lag, Johansen co-integration and the error correction tests were applied at significance level of 0.05. The results showed that the independent variables except private sector credit, had positive and significant relationship with real gross domestic product on the short-run and all the variables had significant impact on growth of the economy in the long-run with a speed of adjustment of 77.75%. In conclusion, the study agrees on the existence of a significant relationship between selected banking sector variables on economic growth and recommends that the monetary authorities should put measures and policies in place to consolidate on previous banking reforms, which will make the sector stronger, stable, virile and globally competitive in line with upward revision of the capital base and shareholders fund.