© 2013. Andrew O Agbada & Osuji C.C. 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 Finance Volume 13 Issue 9 Version 1.0 Year 2013 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 An Empirical Analysis of Trends in Financial Intermediation and Output in Nigeria By Andrew O Agbada & Osuji C.C. Delta State University, Nigeria Abstract - Financial Intermediation, as a process involves the transformation of mobilized deposits liabilities by financialintermediaries such as banks into bank assets or credits such as loans and overdraft. This paper seeks to analyze empirically the trends in Financial Intermediation and Output (GDP) in Nigeria from the banking crises period beginning from 1981 to 2011. In doing so, the study used the endogenous components of financial intermediation such as Demand Deposits (DD), Time/Savings deposits (T/Sav) and Credits (Loans and Overdraft) as explanatory variables to predict the outcome of our dependent variable Output (GDP). Data were sourced from CBN statistical Bulletin, 2011 and regression estimation was carried out using IBM SPSS statistics 20. The findings suggests that though there exist a positive growth relationship between financial intermediation and output in Nigeria, there also exist elements of negative short-run growth relationship, especially for the periods that suffered financial shocks resulting from the global financial crisis and perhaps, numerous bank failures. These findings may serve to buttress existing research outcomes and will be relevant to regulatory authorities in formulating policies that are capable of positively enhancing financial intermediation and output growth in the economy. Keywords : financial intermediation, output (GDP), demand deposit, time and savings deposit, bank credits, nigeria. GJMBR-C Classification : JEL Code: G01, F65 AnEmpiricalAnalysisofTrendsinFinancialIntermediationandOutputinNigeria Strictly as per the compliance and regulations of: