Financial Market Development and Export Earnings in Nigeria

This study aims to evaluate the impact of financial market development on earnings from exports in Nigeria. Expo facto research design was used in this study and time series data were obtained from the Central Bank of Nigeria, International Monetary Fund, and World Bank Development database from 1990 to 2021.The study utilized Auto-regressive Distributed Lag (ARDL) technique in establishing the short and long-run relationship among the variables. From the result, it was found that: financial market depth has negative but significant (β = -20.457) impact with export earnings in Nigeria; financial market access (β = 3.149) have a positive and significant impact with export earnings in Nigeria; financial market efficiency (β = 3.695) have positive and significant effect with export earnings in Nigeria; and financial market stability (β = 0.025) have positive and significant effect with export earnings in Nigeria. Therefore, it was concluded that financial market development through financial market access, efficiency and stability has a significant impact on export earnings in Nigeria. Accordingly, the study recommended that policymakers and relevant stakeholders focus on enhancing and maintaining an enabling environment for easy access to financial markets which boosts export earnings and among others.