Abstract:
The study examines the influence of financial sector development on employment generation in
Nigeria between 1999 and 2015 using Ordinary Least Square (OLS) regression method. Findings
from the study showed that money supply has a significant relationship with Nigeria's employment
levels. It showed that money supply has contributed immensely to the growth of employment levels.
However, we found insignificant evidence that bank credit to private sector exerted positively to
employments. This means loans from bank to private sector did go into the hands of businessmen
who invested these funds into the economy thus the insignificant impact. The direct relationship
between stock market capitalization and employment creation shows that an increased activity in the
financial sector leads to higher employment levels, other things being equal. This is an indication
that the lending activities of the banks have not really impacted on the economic progress of the
country. Meanwhile, banks are expected to channel mobilized sayings to investors inform of loans
and advances. Hence, the pointer is to identify those constraints and bottlenecks that are making it
difficult for banks to make loans available to private market participants. Therefore, there is the
need for consistent, transparent and fair policy to all the players in the sector, the need to develop
viable and responsive financial services for the poor in Nigeria, government should pay off all
creditor contractors so that they can pay banks and take new loans and also restore some of them to
good financial health.
