Banks/Financial Sector Project Financing and Economic Growth in South Sub-Saharan Countries

Abstract

The project examines the relationship between Bank/financial sector financing and economic growth in South Saharan countries of Nigeria and Sierraloen. This is done to ascertain the impact of Banks/financial sector financing and the growth of Nigerian economy and francophone country of Sierraloen economy. A descriptive research design was adopted for use involving the collection of variables which includes Gross Domestic Product, Loans and Advances by the banks/financial to private sector and money supplied by the CBN/ADB. The research which centered on the use of secondary data collected from the CBN and African Development Bank from 2000 – 2012. The statistical package for social sciences (SPSS) was used to carry out regression correlation analysis to test the hypothesis. The findings show that there was significant relationship between the loans and money suppliers to private sector and economy growth in Nigeria and Sierraloen. Based on the findings the researchers recommend that the policy makers should facilitate the establishment of financial institution to increase credit delivery to private sector especially in the Rural areas which have limited, access to financial services and create enabling environment to enhance economic growth in South sub-saharan countries. However the results of the research may be different if other variables such as interest rates and exchange rate are introduced.

Keywords: Gross Domestic Product, economic growth Bank/Financial Sector, Credit Advances and Load