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The aim of this study is to investigate financial development and the Nigerian economy. Data were collected from secondary sources through the CBN statistical bulletin 2019. Data collected were analyzed using statistical technique; and diagnostic tests such as Augmented Dicker Fuller (ADF) unit root test, Autoregressive distributed lag (ARDL), bounds test, co integrating and long run form tests were also conducted. The study proxy financial development with; money supply as a percentage of GDP, private sector credit as a percentage of GDP, market capitalization and interest rate while the proxy for Nigerian economy which is the dependent variable is real GDP. The study found that market capitalization and private sector credit as a percentage of GDP are not significant but exhibits positive relationship with GDP while money supply as a percentage of GDP exhibits negative relationship with GDP and is not significant. Interest rate, which did not conform to our theoretical expectation exhibits negative relationship with GDP and is not significant. The link between the financial and real sector is positive and can be improved upon through sound policies and institutional development of the sectors. In particular, credits to private sector and market capitalization in Nigeria have yielded positive results and this implies that Government should focus more on development of the Nigeria stock market and also improve resource allocation, credit channels and funding to private firms by financial institutions. Keywords: Financial development, Nigerian economy, Market capitalization, Gross Domestic product, Sustainable development