Abstract
The Nigerian banking sector has historically played a significant role in the nation’s economic development by mobilizing financial resources and allocating them efficiently to productive sectors. This paper examines the role of banking in promoting economic growth in Nigeria between 1980 and 2023, a period characterized by major financial reforms, including the Structural Adjustment Programme (SAP) of 1986, the liberalization of the financial system in the 1990s, and the banking consolidation reforms of 2004. The study highlights how the banking sector facilitated investment, credit expansion, and financial deepening, which contributed to the growth of gross domestic product (GDP). It also reviews empirical and theoretical works that link financial intermediation with growth, including recent studies on digital and hybrid financial systems. Findings indicate that an efficient banking system enhances economic growth, but persistent challenges—such as non-performing loans, weak financial inclusion, and regulatory inconsistency—have limited its full impact. The paper concludes that sustained reforms, digital innovation, and prudent regulation are essential to strengthen the sector’s contribution to Nigeria’s long-term development.
Keywords
Banking Sector, Economic Growth, Financial Intermediation, Nigeria, GDP, Digital Economy
Citations
IRE Journals:
Ajumobi Folashade Victoria
"The Role of Banking on the Economic Growth of the Nigerian Economy (1980–2023)" Iconic Research And Engineering Journals Volume 9 Issue 4 2025 Page 712-714
IEEE:
Ajumobi Folashade Victoria
"The Role of Banking on the Economic Growth of the Nigerian Economy (1980–2023)" Iconic Research And Engineering Journals, 9(4)
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