Effect of Bank Lending on Economic Growth of Nigeria

Authors

  • KABIRU JINJIRI RINGIM UTB SCHOOL OF BUSINESS UNIVERSITI TEKNOLOGI BRUNEI NEGARA BRUNEI DARUSSALAM
  • NDAGI Shuaib SAYEDI Department of Business Administration Faculty of Management and Social Sciences Ibrahim Badamasi Babangida University, Lapai, Niger State, NIGERIA

Abstract

Bank lending or credit is one of the monetary instruments used by the government through CBN to control banks as well as boosting the activities of the nation. This study examines the effect of lending by Deposits Money Banks’ (DMBs) on economic growth of Nigeria from 1981 to 2014. The population of the survey is 64 DMBs that includes 45 defunct and 19 existing DMBs operating in the Nigeria banking industry as at December 2015. The regression results indicate that DMBs’ lending has a positive and significant effect on economic growth. But DMBs’ lending rate has a positive and insignificant effect on economic growth. Thus, this study recommends that the management of DMBs should encourage their banks to increase bank lending to the main sectors of the economy that will use it in productive ventures, thereby boosting the economic growth of Nigeria. The reason is that one percent increase in DMBs’ lending will significantly increase the economic growth of Nigeria for the periods of study.

 

 

 

Author Biography

NDAGI Shuaib SAYEDI, Department of Business Administration Faculty of Management and Social Sciences Ibrahim Badamasi Babangida University, Lapai, Niger State, NIGERIA

Department of Business Administration
Faculty of Management and Social Sciences
Ibrahim Badamasi Babangida University, Lapai,

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Published

2019-06-17

How to Cite

RINGIM, K. J., & SAYEDI, N. S. (2019). Effect of Bank Lending on Economic Growth of Nigeria. Jurnal Kemanusiaan, 17(1). Retrieved from https://jurnalkemanusiaan.utm.my/index.php/kemanusiaan/article/view/246

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