Digitalisation, Banking Stability and Nigeria's Economic Growth Trajectory

Sunday Enebeli-Uzor
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Abstract

The integration of digital technologies in banking operations has become a cornerstone of economic policy to promote financial stability and foster economic growth. This study examines the interplay between digitalisation and banking industry stability and economic growth in Nigeria. Annual time series data spanning 1981 to 2022, except for the digitalisation variable (web payment) which covers a shorter period, was collected from the Central Bank of Nigeria’s Statistical Bulletin. Using the Least Squares estimator to analyse the multiple regression model, the study found that digitalisation and financial deepening negatively impact economic growth due to digital prematurity and financial shallowness. However, bank stability and bank assets positively influence economic growth. The study concludes that although digitalisation and financial deepening have the potential to enhance growth, as seen in studies for other nations, Nigeria’s digital maturity level is too low to propel economic growth effectively. Nonetheless, stability in the Nigerian banking industry and bank assets contribute positively to the country’s economic growth trajectory. The study suggests that banks should invest more in digital transformation to foster economic growth. Additionally, banks should provide more credit to private sector and integrate the unbanked population into formal banking processes to enhance financial deepening, which is a key driver of growth in both aspiring and regional peer countries of Nigeria. Finally, banks should continue to build a strong asset base, not only for regulatory purposes but also to leverage large assets for valuation benefits, collateral for loans, risk exposure diversity, competitive advantage, and growth opportunities.
数字化、银行业稳定性与尼日利亚经济增长轨迹
将数字技术融入银行业务已成为促进金融稳定和经济增长的经济政策基石。本研究探讨了尼日利亚数字化与银行业稳定和经济增长之间的相互作用。除了数字化变量(网络支付)的时间跨度较短外,本研究从尼日利亚中央银行的《统计公报》中收集了 1981 年至 2022 年的年度时间序列数据。研究使用最小二乘估计法分析了多元回归模型,发现数字化和金融深化对经济增长有负面影响,原因是数字化不成熟和金融浅薄。然而,银行稳定性和银行资产对经济增长有积极影响。研究得出结论,虽然数字化和金融深化具有促进经济增长的潜力,但正如对其他国家的研究所示,尼日利亚的数字化成熟度太低,无法有效推动经济增长。不过,尼日利亚银行业和银行资产的稳定性对该国的经济增长轨迹起到了积极作用。研究建议,银行应加大对数字化转型的投资,以促进经济增长。此外,银行应向私营部门提供更多信贷,并将无银行账户的人口纳入正规银行流程,以加强金融深化,这是尼日利亚有抱负的国家和地区同类国家经济增长的主要驱动力。最后,银行应继续建立强大的资产基础,这不仅是出于监管目的,也是为了利用大额资产获得估值收益、贷款抵押、风险敞口多样性、竞争优势和增长机会。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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