This study focuses on the relationship between the development of the financial sector (financial deepening) and growth of the Nigerian economy. The financial deepening vigorously attracts the reservoir of savings and idle funds and allocates same to entrepreneurs, businesses, households and government for investments projects and other purposes with a view of returns which forms the basis for economic development. Despite this, Nigerian financial deepening has failed to experience impressive performance such as attraction of foreign investment or halt capital flight. The study therefore examines if credit allocation to the private sector contributes significantly to the real sector of the economy and also assesses the relationship between financial deepening and investment.The Ordinary Least Square Regression method is employed in analyzing the data transcribed from financial reports of theCentral Bank of Nigeria Statistical bullentins (various issues), and National Bureau of Statistics, covering 1986-2018.Essentially, it is revealed among other things that the financial sector development is a great determinant of the level of growth in the Nigerian economy. It is recommended that, though the financial sector development affects economic growth, external factors such as political unrest, insecurity, international influence, etc, which also exert influence on economic growth, should be properly addressed by the Government.
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