Volume: Vol. 1 No. 2 | Page: 66-75
AWOSUSI, Temitope Charles, PhD
EFFECT OF BANK CREDIT ON THE DEVELOPMENT OF MANUFACTURING SECTOR IN NIGERIA (2001 – 2021)
Abstract:

This study investigated bank credit on the development of manufacturing sector in Nigeria (2001 – 2021).The study relied on secondary data extracted from Central Bank of Nigeria (CBN) statistical bulletin, and the databank of World Bank. Barro (1990) growth models was adopted and modifies to accommodate bank credit is the private sector and inflation. The data were analysed using ordinary least square regression method. The results showed that there is no statistically significant relationship between interest rate and the manufacturing sector in Nigeria where ( ). The results further showed that there is a positive relationship between inflation, exchange rate, credit to the private sector, and the manufacturing sector growth. The study concluded that there is a statistically significant relationship between bank credit and the manufacturing sector in Nigeria. This study therefore, government through the Central Bank of Nigeria should pursue policies that lower the interest rate (cost of capital) and increase money supply in order to increase the output of the manufacturing sector which is capable of stimulating economic growth.

Keywords: Banks credit, inflation, Exchange rate, Manufacturing growth, Economic growth.
Citation: AWOSUSI, Temitope Charles, PhD (2023). EFFECT OF BANK CREDIT ON THE DEVELOPMENT OF MANUFACTURING SECTOR IN NIGERIA (2001 – 2021). African Journal of Educational Technology, Vol. 1 No. 2, 66-75.
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