Financial Sector Reforms and Industrial Development in Nigeria

Abstract

This research work aims at filling this gap with particular emphasis on Nigeria, by looking at the role of financial sector reforms in enhancing industrial development. It utilizes aggregate annual time series data from 1980-2010. Primary data were collected from CBN statistical bulletin, Economic and financial review, the International Financial Statistics, the World Bank Development index (2003 - 2010).  Econometric tools used were unit root test, co-integration test, and error correction model. The empirical results revealed that financial reforms encourage the industrial growth and recommended that policies to be pursued by the government should take cognizance of inflation rate if the effect of financial reform programmes will be desirable. Also industrial development will become relevant only after some policy reversals. For this reason, it is necessary for the federal government to disburse funds with strict monitoring in order to encourage the low levels of development in the industrial sector in the economy.

Keywords: Financial sector, Reforms, Industrial development, Nigeria