Igbanibo Dumini Solomon^1,, Iwedi Marshal¹

This paper examines the linkage between finance companies intermediation functions and economic growth in Nigeria. Using an annual time series data spanning the period of 1992 -2014 with the application of the estimation techniques of ordinary least square (OLS), co integration test, alongside granger causality test. The Global statistic results indicates that about 80% of the variations in GDP for the estimation period were captured by the explanatory variables. The relative statistic results showed evidence for strong and positive correlation between NLA and GDP in both short run and long run. Causality runs Bi-directionally between INV and GDP and Uni-directionally between NLA and GDP. The study conclude that financial intermediation functions of finance companies has a prominent role in determining the performance of the Nigeria economy. As such there should be an effective regulatory framework for finance companies operations in Nigeria with the view of improving financial intermediations services. It further recommends that there should be collaboration between finance companies and other financial institutions with the view of building a robust financial system in Nigeria. By ways of policy statement public awareness on the existence and function of finance companies be made to increase their patronage.

intermediation, finance companies, economic growth, Nigeria