ABSTRACT
The study was conducted to examined the
impact of Bank credit on manufacturing sector output in Nigeria. Given the lack
of consensus among previous researches on the subject became the major problem
of the study. The study sought to determine the impact of bank loan and
advance, bank lending rate, bank savings deposit rate and inflation rate on
manufacturing sector output in Nigeria. The study adopted ex-post research design, secondary annual time series data sourced
from the Central Bank of Nigeria Statistical Bulletin was employed. The data
collected were analyzed using multiple regression analysis. Johasen
co-integration test and vector error correction test. Other diagnostic test such as unit root test,
Normality test, serial correlation test and hetroskedasticity test were also
conducted. Findings revealed that bank loan and advances had positive but
insignificant impact on manufacturing sector output in Nigeria. Bank lending
rate, Bank savings deposit rate and inflation rate all had negative but
insignificant impact on manufacturing sector output in Nigeria. The study
therefore recommends that Banks should strengthened their credit monitoring
mechanism to ensure that loan and advance from banks are adequately utilized by
manufacturing sector. The government should endeavor to improve the
infrastructural base, such as adequate power supply, so as to reduce the
operating cost and interest banks charges. Also Central Bank of Nigeria should
purse moderately expansionary monetary policy to also reduce the cost of funds
in the economy. The Central Bank of Nigeria should make policies that will
encourage the manufacturing sector to make more saving in the country. Finally,
Central Bank of Nigeria should take a critical look at the macroeconomic policy
to regulate it effectively to the reduce the inflation level in the country to
enhance the growth of the manufacturing sector.
FLORENCE, I (2024). Bank Credit And Manufacturing Sector Output In Nigeria:- Ikeh, Florence I.. Mouau.afribary.org: Retrieved Sep 08, 2024, from https://repository.mouau.edu.ng/work/view/bank-credit-and-manufacturing-sector-output-in-nigeria-ikeh-florence-i-7-2
IHUOMA, FLORENCE. "Bank Credit And Manufacturing Sector Output In Nigeria:- Ikeh, Florence I." Mouau.afribary.org. Mouau.afribary.org, 17 Apr. 2024, https://repository.mouau.edu.ng/work/view/bank-credit-and-manufacturing-sector-output-in-nigeria-ikeh-florence-i-7-2. Accessed 08 Sep. 2024.
IHUOMA, FLORENCE. "Bank Credit And Manufacturing Sector Output In Nigeria:- Ikeh, Florence I.". Mouau.afribary.org, Mouau.afribary.org, 17 Apr. 2024. Web. 08 Sep. 2024. < https://repository.mouau.edu.ng/work/view/bank-credit-and-manufacturing-sector-output-in-nigeria-ikeh-florence-i-7-2 >.
IHUOMA, FLORENCE. "Bank Credit And Manufacturing Sector Output In Nigeria:- Ikeh, Florence I." Mouau.afribary.org (2024). Accessed 08 Sep. 2024. https://repository.mouau.edu.ng/work/view/bank-credit-and-manufacturing-sector-output-in-nigeria-ikeh-florence-i-7-2