IMPACT FINANCIAL DEVELOPMENT ON POVERTY IN NIGERIA: THE ARDL APPROACH
Mathias Mathew Madu, PhD and Waidu Apagu Pascal
Volume 14 Issue 2
Abstract
This study assessed the impact of financial development on poverty in Nigeria using time series data spanning from 1981 - 2025. The ex-post facto research design was adopted and the data used were sourced from the World Bank Development Indicator database. The data were analysed using Autoregressive Distributed Lag Model (ARDL) bounds co integration approach. The long-run result shows that financial development proxied by broad money supply contributes positively to poverty while financial sector development proxied by private sector credit had insignificant negative impact on poverty in Nigeria for the period under review. The estimated model passed all the diagnostic tests meaning that including structural stability. The study recommends proper monitoring of the financial system, ensure both financial and market stability to encourage investors. Keywords: Financial Development; ARDL; Poverty; Nigeria
Download Paper