The Nexus Between Bank Lending And Economicperformance In Nigeria
Ihenetu Hyginus I. PhD
Department of Banking and Finance, Captain ElechiAmadi Polytechnic RumuolaPort Harcourt
Isoboye Jacob Damieibi. PhD
Captain ElechiAmadi Polytechnic Rumuola, Port Harcourt
Keywords: Economic performance, Gross domestic product, Bank lending, ECONOMIC PERFORMANCE IN NIGERIA
Abstract
The paper evaluated the nexus between the bank lending and economic performance in Nigeria. Data were collected from CBN statistical bulletin for thirty nine (39) years. Expost facto design was employed for the study. Ordinary least square regression was used to analyze the data. The findings showed that commercial bank loan to Agriculture, Forestry and Fishery had significant effect on gross domestic product in Nigeria, commercial bank loan to Manufacturing had significant effect on economic performance in Nigeria and commercial bank loan to Mining and Quarrying had significant effect on economic performance in Nigeria. Based on the findings, we therefore recommend that commercial bank should grant more loans to the agriculture, forestry and fishery sector to boost the sector which will ultimately increase gross domestic product, government should encourage manufacturing sector by way of tax relief, subsidy, reduction of interest rate etc to boost their productions and ultimately increase the gross domestic product and commercial bank should also grant more loans to the mining and quarrying sector to encourage the sector to produce more goods and services and thereby increase the gross domestic product.