© 2018. Godwin Chigozie Okpara, A. N. Onoh, B. M. Ogbonna, Eugene Iheanacho & Iheukwumere Kelechi. J. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. Global Journal of Management and Business Research: C Finance Volume 18 Issue 2 Version 1.0 Year 2018 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Econometrics Analysis of Financial Development and Economic Growth: Evidence from Nigeria By Godwin Chigozie Okpara, A. N. Onoh, B. M. Ogbonna, Eugene Iheanacho & Iheukwumere Kelechi. J Abia State University Abstract- This work explored the relationship between financial development and economic growth in Nigeria. Specifically it investigated the extent to which financial development engenders economic growth. It also verified the existence of supply leading and/or demand following hypotheses in Nigeria. To evaluate these, the researchers firstly determined the stationarity of the variables which informed the use of co integration and then the vector error correction model to finding the long run impact of financial development variables on the growth of the economy. The diagnostic test was employed to determine the authenticity and stability of our model. The researchers also employed the Granger Causality test to investigate the existence of supply leading and/or demand following hypothesis. The results of the analyses show that there is a long run relationship between financial development and economic growth in Nigeria and that besides the metric for banking system financing of the economy variable which is significantly inadequate, all other financial development indicators engender economic growth. Our diagnostic test shows that the model is adequate, plausible, and stable. Keywords: financial development, economic growth, supply leading, demand following hypotheses, cointegration. GJMBR-C Classification: JEL Code: F43 EconometricsAnalysisofFinancialDevelopmentandEconomicGrowthEvidencefromNigeria Strictly as per the compliance and regulations of: