SUSTAINABLE DEVELOPMENT: NEXUS BETWEEN FINANCE AND ADJUSTED NET SAVINGS IN NIGERIA

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Date
2019
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DEPARTMENT OF ACCOUNTING AND FINANCE AND BUSINESS ADMINISTRATION, FOUNTAIN UNIVERSITY OSOGBO
Abstract
This study examined the Nigerian financial sector and adjusted net savings in Nigeria. Time series data from 1986–2015 was obtained from the World Development Indicators, the Central Bank of Nigeria Statistical Bulletin, and the annual reports of the National Insurance Commission. An autoregressive distributed lag (ARDL) bound test was estimated, and findings revealed that: the banking sub-sector has a positive and significant relationship (θ=0.871;P<0.01) with adjusted net savings in Nigeria; the stock market sub-sector positively and significantly (θ=0.162;P<0.1) affects adjusted net savings in Nigeria; and the insurance sub-sector positively and significantly (θ=-0.525;P<0.1) on adjusted net savings in Nigeria. This study concluded that the banking and stock market sub-sectors of the financial system significantly influence adjusted net savings in Nigeria. The study therefore recommends that the government, through it's regulatory authorities, should pay more attention to the banking and stock market sub-sectors of the financial system in order to make them resilient, effective, and efficient towards channeling funds to productive or growth-driven sectors to significantly impact adjusted net savings in Nigeria, thereby propelling sustainable development in Nigeria.
Description
This study concluded that the banking and stock market sub-sectors significantly influence adjusted net savings in Nigeria and recommended that the government focus on enhancing these sectors to promote sustainable development.
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Citation
Ademokoya, A. A., and Abdullahi, I. B. (2019): Sustainable development: Nexus between finance and adjusted net savings in Nigeria. FOUJM. 4(2): 22-34, Published by the College of Management and Social Sciences, Fountain University, Osogbo. Available online at https://www.academia.edu/120278925/Nexus_between_financial_sector_and_adjusted_net_savings_in_Nigeria 2