Subscribe to our Newsletter and get informed about new publication regulary and special discounts for subscribers!

ILSHS > ILSHS Volume 2 > Relationship between Sustainable Financial...
< Back to Volume

Relationship between Sustainable Financial Services and Poverty Reduction in Nigeria - Evidence from Error Correction Model

Full Text PDF


The inflexibility of poverty is being met with increasing impatience from governments of diverse ideologies, donors and other international agencies. Recent data compilations show that many poor and non-poor people in many developing countries face a high degree of financial exclusion and high barriers in access to finance. Therefore, financial inclusion plays a critical role in reducing poverty. Hence, this paper examines the relationship between sustainable financial services and poverty reduction in Nigeria from 1965 - 2010 using Error Correction Model (ECM). It was observed that total value prime lending rate, financial savings, credit to private sector and rate of inflation all have significant impact on the financial deepening. In the final analysis, the study concludes that financial inclusion tends to strengthen financial deepening and provide resources to the banks to expand credit delivery thereby leading to financial development. The study therefore recommends that these findings, in turn, will inform the policy makers and stakeholders to build more inclusive financial systems


International Letters of Social and Humanistic Sciences (Volume 2)
T. A. Muritala and I. O. Fasanya, "Relationship between Sustainable Financial Services and Poverty Reduction in Nigeria - Evidence from Error Correction Model", International Letters of Social and Humanistic Sciences, Vol. 2, pp. 39-50, 2013
Online since:
September 2013

Adams C. S., African Econometric Research Consortiun 15 (1992) 1-52. AERC Special Paper.

Akinlo A. E., Olufisayo Akinlo, Journal of Social and Economic Development 1 (2007).

Ayida O. E ., International Journal of Finance and Economics 19 (2007).

Boughton J. M., IMF Staff Papers 38 (1991) 1-32.

Central Bank of Nigeria Annual Report and Accounts, Various Issues Statistical Bulletin, Various Issues.

Chibba M., World Economics 8(3) (2007) 111-129.

Edo S. E., Economic and Financial Review 1 (12) (1995).

Engle R. F., Granger C. W. J., Econometrica 55 (1987) 251-276.

Goldsmith R., Financial Structure and Development New Haven, Yale University Press, (1969).

Ju and Wei, A Solution to the Two Paradoxes of International Capital Flows, (2007).

Levine R., Journal of Financial International 11 (4) (2002) 398-428.

Mckinnon R., Money and Capital in Economic Development, Washington D. C. Brooking Institute, (1973).

Ndebbio J. E. U., African Economic Research Consortium 142 (2004).

Nzotta S. M., Money, Banking and Finance, Theory and Practice Owerri. Hudson Jude Publishers, (2004).

Ogun O. D., Nigerian Journal of Economic and Social Studies 28(2) (1986).

Oyejide T. A., Nigerian Journal of Economic and Social Studies 28(2) (1994).

Porter R., Journal of Development Studies 1(4) (1966).

Shaw Edward, Financial Deepening in Economic Development, London, Oxford University Press, (1973).

United Nations Organization World Summit, The United Nations Millennium Development Goals, (2005).

World Bank. Press Review. 24 August, (2007).

World Bank. Finance for All? Washington DC: World Bank, 2008).

World Bank Group. Catalyzing the Future: An Inclusive and Sustainable Globalization, (2007).

Presentation by Robert Zoellick, President, World Bank Group, at the Annual Meeting of the Board of Governors; 22 October.

Yan E., Why Isn't Financial Deepening Happening in Developing Countries, 2007, www. worldbank. org ( Received 28 April 2013; accepted 30 April 2013 ).

Show More Hide
Cited By:
This article has no citations.