Vol 1 No 1 (2020): American International Journal of Supply Chain Management
Research Articles

Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017

Idih Ogwu Emmanual
Kogi State University
Bio
Oluwagbemigun Olupeeka
Adekunle Ajasin University
Bio
Adewole Joseph Adeyinka
Adekunle Ajasin University
Bio
Published August 10, 2020
Keywords
  • Commercial Banks, Credit, Real Sector, Lending Rate, Gross Domestic Product.
How to Cite
Emmanual, I. O., Olupeeka, O., & Adeyinka, A. J. (2020). Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017. American International Journal of Supply Chain Management, 1(1), 1-15. https://doi.org/10.46545/aijscm.v1i1.209

Abstract

The study examined the arguments and counterarguments within the scientific discussion on commercial banks credit and the performance of real sector in Nigeria. The main objective of the study is to examine the effect of commercial banks credit on the performance of the real sector in Nigeria.Data was sourced from Central Bank of Nigeria Statistical Bulletin. A systematization literary approach for data analysis was Regression Analysis. Findings revealed that bank credit and bank lending rate does not have significant impact on real sector performance in Nigeria. It was showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. The study therefore recommends that banks should be directed to channel their credits towards the real sector to facilitate overall economic growth and development in Nigeria. It was recommended that there is the need policies that will favor the revamp of the agricultural sector in Nigeria should be given pride of place. Also, monetary authority through the Central Bank of Nigeria should create adequate policies and strategies towards deepening of the financial sector and reducing the cost of credit/loans so as to enhance productivity and consequently enhance the growth of the key sectors of economy such as manufacturing sector.

 

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