IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 8 NO. 4 2023
DOI: https://doi.org/10.56201/ijefm.v8.no4.2023.pg40.53

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The Impact of Financial Development on Poverty in Nigeria

Ezebunwa Justice, Lucky OrLu, and Young Geoffrey Nwala

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Abstract

This study was aimed to examine the impact of financial development on poverty in Nigeria using annual time series data- spanning 30 years (1990-2O20). Variables used in the model were; per capita income, money supply, domestic credit to private sector and interest rate. The data for this study was obtained mainly from secondary source, which was collected from CBN statistical bulletin. The Ordinary Least Square (OLS) regression technique was employed using econometric views (E-views) version 10.0 software. The results indicated that that there is a significant positive relationship between financial development and poverty in Nigeria, which is consistent with the a prior expectation. Also, the result showed that money supply has a positive and significant effect on poverty in Nigeria. Furthermore, the study revealed that domestic credit to private sector has positive and insignificant effect on poverty eradication in Nigeria. Finally, the findings revealed that interest rate has a negative and insignificant effect on poverty in Nigeria. This result implies that an increase in broad money supply and domestic credit to private sector will lead to a decrease in Poverty level in Nigeria, while an increase in real interest rate will lead to an increase in Poverty level in Nigeria

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References:

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Chinweze, R. M. (2017). Poverty reduction in Nigeria: Is financial deepening beneficial?
Journal of Economics and Sustainable Development, 8(24),97-108

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