ABSTRACT

Financial development is considered as a vital tool in any inclusive growth decision since we are aware that adequate and accessible financial information and data creates link a between an economy and its financial institutions This study was therefore an attempt to find out the relationship between financial development and inclusive growth in the Nigerian economy and to know the factors necessary for attaining a higher level of growth through inclusive growth in Nigeria The work has been written in chapters in line with the Nigerian economy The researcher made use of secondary data collected from the CBN statistical bulletin for the study. The study also went through hypothesis testing process data presentation and analysis It was there by discovered that financial development has a negative relationship with inclusive growth in Nigeria I found out that a unit increase the ratio of broad money supply to GDP and the ratio of credit allocated to the private sector to GDP would cause a decrease in per capita income by a certain percentage This implies that once reliable and accessible financial information are provided in an economy it leads to efficient allocation of finances and adequate management of these funds which in turn leads to adequate participation of these sectors in the growth process of the economy This leads to inclusive growth in the  Nigerian economy On the contrary if these resources are mismanaged due to inadequate development in the financial system it hinders growth

BACKGROUND TO THE STUDY

Every economy targets the attainment of its desired objectives. Inclusive growth is one major objective of any economy. The economy therefore aims towards efficiency and proper effectiveness in conducting its affairs. However, the level of this efficiency and effectiveness of an economy or the extent to which it is able to achieve its desired goals to a large extent depends on the quality of available and accessible financial information, and how the economy utilizes the available information. This implies that financial development is essential for sustainable growth and development which deals with the problem of inclusive growth. According to the World Bank growth report (2008), growth is said to be inclusive when the growth is sustainable in the long run, and it should be broad across all sectors and inclusive of part of the country’s labour force. Inclusive growth is a system which advocates   equitable contribution of various sectors of an economy to its growth process and it cannot be achieved in isolation of a properly developed financial sector or system. Nigeria is a country enriched with various natural resources and an efficient labour force but with the dwindling nature of the Nigerian economy today and the threat that it might get worst in future, proper financing of the various sectors in the Nigerian economy to increase their contributions to the economy is required. Nigeria’s over dependence on the oil sector has led to the decreasing nature of the country’s standard of living and the increasing nature of abject poverty and inequality. 

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