Department of Economics

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ASSESSMENT OF GREEN FINANCE ON ECONOMIC GROWTH AND INCOME INEQUALITY IN NIGERIA
(Covenant University, Ota, 2026-05) Ojo, Abigail Victory; Covenant University Dissertation
This study examines the impact of green finance on economic growth and income inequality in Nigeria over the period 1990-2024. The motivation for the study arises from the increasing global emphasis on green finance as a tool to curb the effects of climate change and promotion of economic growth that is beneficial to all and this raises the need to understand its macroeconomic and distributional implications in a developing economy like Nigeria. Specifically, the study investigates the effect of green finance on economic growth and income inequality while incorporating key control variables such as inflation, unemployment, foreign direct investment, labour force participation, and Trade openness. The study employs annual time-series data and adopts the Autoregressive Distributed Lag (ARDL) bounds testing approach and a robustness test to confirm results. The empirical findings reveal that green finance has a significant but negative impact on economic growth in the short and long-run and also a positive and statistically significant effect on income inequality in both the short run and long run. The robustness test revealed that a higher level of renewable energy consumption reduces income inequality in Nigeria. Overall, the study suggests that the green finance sector in Nigeria is still at a developmental stage and may involve transitional costs, inefficiencies, and delayed returns. Additionally, the results indicate that macro-economic indicators have mixed effects on economic growth and income inequality, It recommends the promotion of inclusive green finance policies, strengthening of regulatory frameworks, and improved access to green funding for small and medium enterprises and low-income groups to ensure that green finance contributes to both economic growth and equitable income distribution.
Financial Deepening and Economic Growth Nexus in Nigeria
(Scitech Journal, 2026) OMANKHANLEN, Alexander Ehimare; Omokore, David Eyitayo; Olusuyi Ajayi; Akinjare, Victoria Abosede
This study explored the relationship between financial deepening and economic growth in Nigeria over the period 1971 to 2020. The literature presents differing views on whether financial deepening has a positive effect on economic growth, prompting further empirical investigation. Annual data on key variables-such as lending interest rate, bank capital, bank liquid reserves, domestic credit, and stock traded-were obtained from the World Bank Indicators. The analysis employed an Ordinary Least Squares (OLS) regression model to assess the effects of these variables on Nigeria’s GDP. The results indicated that bank liquid reserves had a positive and statistically significant impact on GDP at the 5% significance level, while domestic credit and stock traded were positive but not statistically significant. Based on these findings, the study recommends that the Central Bank of Nigeria (CBN) urgently reconsider its monetary policy rate and the volume of financial resources allocated to the private sector. Additionally, measures should be introduced to cushion the effects of disinvestment and to promote policies that enhance income, liquidity preferences, and savings behavior among citizens, all of which can contribute to a more resilient economy. Finally, financial institutions are encouraged to develop a wider range of financial instruments to attract investors and mobilize idle funds for productive investments.
EFFCTS OF DIGITAL PAYMENT AND FINANCIAL INCLUSION ON ECONOMIC GROWTH IN SELECTED WEST AFRICAN COUNTRIES
(Covenant University Ota, 2025-04) ADEKOYA, Oluwasegun Ayomide; Covenant University Dissertation
This study examined the effect of digital payment and financial inclusion on economic growth in selected West African countries. The financial sector remains a key driver of economic growth globally, especially as countries employ more technology-driven systems; this shift has profound effects across all sectors, including the financial sector. Meanwhile, despite the ongoing policy efforts to promote digital transactions, West Africa still lags behind in financial inclusion as compared to the global standards. Hence, the study examined the interactive effect of digital payment and financial inclusion on economic growth in selected West African countries. This study employed the Pooled Ordinary Least Squares (POLS) estimation technique to analyse data for ten (10) West African countries from 2014 to 2022. The data was sourced from the World Bank’s World Development Indicators. The explanatory variables used in the model were; mobile transfer payment, mobile money, account ownership at a financial institution or with a mobile-moneyservice provider, labour force and gross fixed capital formation, the dependent variable was real gross domestic product. The findings of the study revealed that both digital payments and financial inclusion independently contribute positively and significantly to economic growth. However, the interaction of digital payments (proxied by mobile transfers) and financial inclusion had a negative and statistically significant impact on economic growth. In contrast, the interaction of mobile money and financial inclusion showed a positive and significant effect on economic growth. The study concludes thus, that the interactive effect between digital payment and financial inclusion has a positive impact on economic growth in the selected West African countries. Based on the findings, this study recommended that mobile money offers a stronger economic potential, and should therefore, be used more as a preferred digital payment channel to enhance financial inclusion and economic expansion in West Africa. The study concluded that economic growth will be boosted if digital payments is strengthened more in financial inclusivity

Department of Economics

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