Commercial Bank Credit and Its Contributions on Manufacturing Sector In Nigeria

Abstract

The main aim of this study was to determine how commercial bank credit can influence manufacturing sector in Nigeria. The study shows that commercial bank credit if well channeled to the worthy customers or sector will enhance economic growth in Nigeria. The objective of the study was to investigate the impact of commercial bank loans on manufacturing sector and to establish the relationship between interest rate and manufacturing sector performance. Secondary source of data was employed using Central bank statistical bulletin. Ordinary least square of multiple regression model was used to establish the relationship between dependent variable and independent variables. The finding revealed that commercial bank credit had a significant relationship on manufacturing sector. It was recommended that government should endeavour to ensure that there are available and sufficient credit allocated to the manufacturing sector in Nigeria with reasonable or affordable interest rates, and for Nigeria to meet it millennium goals, she will have to depend on productive and services produced within her boundaries.

Keywords: Aggregate credit, Bank credit, Commercial bank rate, Interest rate,                           Lending rate