Impact Of Commercial Bank Credit On The Nigeria Economy

ABSTRACT

The study examined the impact of commercial banks credit on the Nigerian economy. The data was secondary data sourced from Central Bank of Nigeria statistical bulletin. Multiple regression of ordinary least square (OLS) technique of analysis was used. The result from the study revealed that total banks credit to the private sector has positive but insignificant impact on the gross domestic product of Nigeria, while broad money supply M2 has positive and significant impact on the gross domestic product of Nigeria.  Based on the findings the study therefore, concludes that commercial banks credit has positive and significant impact on the Nigerian economy hence, recommended that adequate savings should be mobilized by commercial banks from the public by emphasizing more on savings there by government through CBN encouraging commercial banks in Nigeria to lend to the private sector and providing interest rate subsidies, lower the lending rate and other incentives should be given to the private sector investors to enhance investments in Nigeria which will impact positively and significantly to the Nigerian economy and that direct credit control should be adopted by the CBN in other to improve the contribution of the informal sector.

TABLE OF CONTENT

Title page ﾿ i 

Declaration ﾿ ii 

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of content ﾿ vi

List of tables ﾿ ix

Abstract    ﾿ x

CHAPTER ONE: INTRODUCTION

1.1 ﾿ Background Of The Study ﾿ 1 

1.2 ﾿ Statement Of Problem ﾿ ﾿ 3

1.3 ﾿ Objective Of Study ﾿ 4

1.4 ﾿ Research Questions ﾿ 4

1.5 ﾿ The Statement Of Hypotheses ﾿ 4

1.6 ﾿ Scope of the study ﾿ 4

1.7 ﾿ Limitation Of The Study ﾿ 5

1.8 ﾿ Definition Of Terms ﾿ 5

1.9 ﾿ Significance Of The Study ﾿ 6

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 ﾿ Concept Framework ﾿ 7

2.1.1 ﾿ The Credit Channels ﾿ 7

2.1.2 ﾿ The Concept Of Economic Growth ﾿ 7

2.1.3   The Main Characteristics Of Economic Growth ﾿ 8

2.2      Theoretical Framework ﾿ 8

2.2.1 ﾿ The Model Of Growth ﾿ ﾿ 9

2.2.2 ﾿ Endogenous Growth Theory/New Growth ﾿ 10

2.3     Empirical Review ﾿ 10

CHAPTER THRE: RESEARCH METHODOLOGY

3.1 ﾿ Research Design ﾿ 19

3.2 ﾿ The Area Of The Study ﾿ 19

3.3 ﾿ Nature and Sources of Data ﾿ 19

3.4 ﾿ Model ﾿ Specification ﾿ 19

3.5 ﾿ Techniques of Analysis ﾿ 20

3.6       Description of variables ﾿ 20

3.6.1    Dependent variable ﾿ 20

3.6.2    Independent variable ﾿ 21

CHAPTER FOUR:

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1 ﾿ Data presentation ﾿ 22 

4.2 ﾿ Regression Analysis and interpretation of Result ﾿ 23

4.3 ﾿ Test of Hypotheses ﾿ 23

4.3.1: Test of Hypothesis one ﾿ 23

4.3.2: Test of Hypothesis two ﾿ ﾿ 24

4.4 ﾿ Discussion of findings ﾿ 25

CHAPTER FIVE:

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 ﾿ Summary of Findings ﾿ 26

5.2 ﾿ Conclusion ﾿ 26

5.3 ﾿ Recommendations ﾿ 27

REFERENCES