UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT

DOES PRIVATE SECTOR BANK CREDIT AFFECT GROWTH IN NIGERIA’S ECONOMY?

MARK DANGANA, FRIDAY OGBOLE OGBOLE
March 19, 2025

Abstract

This study investigates the impact of private sector bank credit on Nigerian economic growth for 31 years period, from 1991-2021. The ARDL time series econometric model is used in the analysis with private sector bank credit, prime lending rate, inflation and money supply as explanatory variables and economic growth (GDP) as the dependent variable. The study reveals that the impacts of explanatory variables on economic growth are:  private sector bank credit (significant and negative); prime lending rate (significant and negative); money supply (significant and positive) while inflation rate (insignificant and positive).It recommends that the monetary authorities should efficiently manage the macroeconomy by maintaining the levels of Bank credits to the Private sector, prime lending rates, inflation rates, and money supply such that the productive sectors of the economy are well served to stimulate growth in the country’s economy.

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UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT

Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT

ISSN: 1596-9911

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