FINANCIAL INTERMEDIARIES AND NIGERIAN ECONOMY: INNOVATIVE METHODOLOGIES AND CONVENTIONAL DESK REVIEW APPROACHES

Abstract

Abstract
This research investigates the function of financial intermediaries in influencing the Nigerian
economy by integrating innovative methodologies with conventional desk review techniques.
Financial intermediaries, comprising banks, microfinance institutions, and non-banking financial
organizations, act as essential channels for the mobilization and distribution of capital within the
economy. By employing a combination of empirical analysis and comprehensive literature review,
this study assesses their influence on economic advancement, financial inclusion, and stability
within Nigeria for the period of five years (2019-2024) The investigation explores both the
prospects and obstacles presented by these intermediaries, emphasizing the efficacy of their
operations in promoting sustainable development, alleviating financial risks, and bolstering small
and medium enterprises (SMEs). Findings from the review indicate that; effective capital
mobilization and distribution facilitate investments in critical sectors, driving economic growth,
the integration of these innovations is still uneven, with some sectors lagging in adopting modern
technologies. Findings also suggest that challenges such as limited access to credit, especially for
small and medium enterprises (SMEs), continue to hamper their broader impact on financial
inclusion. The study recommends among others that the Government should intensify efforts to
ensure that access to financial services especially credit facilities to the undeserved population
critically looked into in other to achieve inclusion.