ROLE OF FINANCIAL INSTITUTION IN THE DEVELOPMENT OF NIGERIA ECONOMY.

This study examines the critical role of financial institutions particularly deposit money banks in promoting economic development in Nigeria. The population of the study is all the Deposit Money Banks (DMBs) in Nigeria. The sample of the study includes eight DMBs. Data was generated from primary source through the use of questionnaire, and analyzed using tables and percentages. The major findings of the study is that the banking sector plays an important role in Nigeria’ economic development and banks are perceived essential in providing credit, mobilizing savings, facilitating long term borrowings and reduces poverty. But despite their importance, there are gaps in the banking sector’s support for small enterprises and optimization of financial products and services. The major recommendation to the study includes that banks should enhance support for small and medium size enterprise and banks should review and upgrade their savings products to attract a larger pool of funds that can be reinvested into the economy.