Impact Of Interest Rate On The Performance Of Manufacturing Companies In Nigeria: A Study Of Nigeria Brewery Company Plc (2011-2015)

ABSTRACT

The• manufacturing sector of the economy is the most important sector and for

obvious reasons it is affected by the unprecedented increase of interest rate to

borrowers. To appraise the effect of this situation prompted this study so as to

provide theoretical and empirical evidence on the effect of high interest rate on the

manufacturing sector of the Nigerian economy. Also, to determine the

manufacturing sectors growth, total earnings and sectors profitability. Data were

gotten through secondary sources. These data collected were presented and

analyzed by means of tables and percentages. The hypothesis adduced was tested

using the multiple regression analytic tool. Results have shown that the

manufacturing sector has been constrained due to the inadequate funding culture

of Nigerian banks and banks no longer want to lend on a long term basis, even

when they lend, it is at cut-throat and high interest rates. Therefore, banks who are

the ultimate source of bank loan should realize that, manufacturers are quality

customers and interest rate should be a dialogue between the two sectors so that

the manufacturing sector could survive and interest rates need periodical

adjustments so that there would be increase in the level of investment