Oil Resource Dependence, Finance and Economic Growth Nexus in Nigeria

This paper investigated the impact of financial development on growth in a resource endowed environment, Nigeria. Based on time series data culled from CBN statistical bulletin for 1981 to 2015. Using the endogenous growth model to specify the relationship among the variables the paper established that oil dependence weakens the efficiency of financial development in stimulating the economy of a resource dependent nation. Having established that oil resource endowment will negatively affect the benefit expected to be accrued from financial development on economic growth; the implication of the result of the study on the macroeconomic conditions that can aid or mitigate the pace of financial development and its contribution to growth in an oil resource endowed economy particularly an oil exporting and importing nation like Nigeria with special focus on how to mitigate the consequence of resource dependence