The Impact of Access to Financial Markets and Efficiency of Financial Institutions on Domestic Investments in Nigeria

This study examined the influence of access to financial markets as well as efficiency of financial institutions on domestic investment in Nigeria. Data used in the study were obtained from the International Monetary Fund (IMF), the Central Bank of Nigeria Statistical Bulletin and World Bank World Development Indicators for the period 1981-2021. The findings show that there is a unidirectional causality from access to financial market to domestic investment in Nigeria. Therefore, the study recommends that the Federal Government of Nigeria to regulate the insider dealings in the stock exchange market, as it will promote access to financial market, which will in turn positively influence domestic investment in Nigeria. It further recommends that monetary authorities, particularly the Central Bank of Nigeria, put policies in place that will prevent commercial banks from making frequent charges on customers, as it will improve bank deposits and domestic investment in Nigeria.