By: Ikwor Okoroafor Ogbonnaya, Bethran Enyim Okulegu, Ikechukwu Eze Okereke, Chima Nnachi Okoro, Ebube Chima Omaka
Pages: 61–81, Volume: 3, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 2/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Banks, Private Sector, Resource Endowment, and Industrial Diversification in Nigeria
Abstract:
This study investigates how the financial system, particularly bank-private sector interactions, can mitigate the resource curse in Nigeria. The analysis explores how these interactions promote structural transformation towards a more diversified and productive economy, utilizing data from 1970 to 2024. The study employs the Dynamic Ordinary Least Squares (DOLS) and the Vector Error Correction Model (VECM) to analyze the long-run and short-run relationships. Results indicate that while resource endowment remains a dominant factor, credit to the private sector significantly facilitates industrial diversification. The study suggests that financial sector reforms should focus on enhancing credit delivery to non-oil sectors to ensure sustainable industrial growth.
Keywords: Bank resource endowment, Portfolio diversification, Risk management, Financial performance
How to Cite
Ogbonnaya, I. O., Okulegu, B. E., Okereke, I. E., Okoro, C. N., & Omaka, E. C. (2026). Banks, Private Sector, Resource Endowment, and Industrial Diversification in Nigeria. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 3(1), 61–81.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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