Abstract

The studyfocused on the relationships between commercial banks loan and economic growth in Nigeria. The objectives ofthe study were to investigate the impact ofcommercial bank loan on real gross domestic product in Nigeria and to determine the long run relationship between commercial bank loans and real gross domestic product in Nigeria. The study employed the use of Ordinary Least Square (OLS) regression technique and the cointegration test in finding objectives, thus was revealed that credit to mining and quarrying sector and credit to agricultural sector both have a positive and significant impact on economic growth in Nigeria while credit to manufacturing sector has a positive but insignificant impact on economic growth in Nigeria also their exist a long run relationship between commercial bank loan and economic growth in Nigeria. From the result of the findings the following recommendation were made; commercial banks should increase their credit giving capacity to the manufacturing sector so as to boost economic growth and development in Nigeria. Commercial banks should also increase their credit giving capacity to agriculturist andmining andquarrying sector in orderto boost theproduction capacity ofthe sector since there is a positive relationship between both sectors and economic growth in Nigeria. Otherfactors which are not limited to agriculturalfinancing should be adequately taken care ofsince they affect the output ofthe industry