Impact of Globalization on Financial Development in Nigeria


  • John Ayodele Ajayi University of Lagos-Akoka
  • Kyalo Stephen Musyimi University of Lagos-Akoka


Globalization, Financial Development, Nigeria, Autoregressive Distributed Lag


This study examines the impact of globalization on Nigerian financial development with particular reference to foreign direct investment, trade openness, exchange rate, government expenditure, interest rate and inflation. The statistical data used for the study were obtained from Central Bank of Nigeria publications and [Statistical Bulletin 2020] and [World Development Indicators 2020]. The study employed the autoregressive distributed lag (ARDL) model. Major findings from the study show that foreign direct investment, trade openness and government expenditure have a positive and significant impact on financial development in Nigeria while exchange rate, interest rate and inflation rate have a negative significant impact on Nigerian financial development. It is recommended that Nigeria must face the challenges of globalization. For a country to belong to the race, major changes and restructuring are imperative, hence, Nigeria must develop the internal structure and the will to adopt those policies that brought about the benefits from globalization.


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How to Cite

Ajayi, J. A. ., & Musyimi, K. S. (2022). Impact of Globalization on Financial Development in Nigeria. Financial Law Review, (25(1), 158–178. Retrieved from