BANK CREDIT AND ECONOMIC GROWTH IN NIGERIA (1990-2009)
Abstract
This paper on bank credit and economic growth in Nigeria examines the impact of the total domestic credit of commercial banks on the growth of the Nigerian economy for a period of twenty years (1990-2009). It examines the significance of bank credit in stimulating growth within the real sector of the Nigeria economy. Data were collected from secondary sources and the simple regression analysis was used in analyzing the data. The findings of this study reveals that the total domestic credit of banks exerts a significant impact on the growth of the Nigerian economy within the period under study. It is recommended in this work that banks should channel a good proportion of their total credits to the productive sectors of the economy such as agriculture and manufacturing in order to further enhance growth in the economy. Interest rates charged by banks on loans and other advances should be reduced to encourage investors borrow for meaningful investments.
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