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Faculty of Management Sciences,
Benue State University, Makurdi, Nigeria.
* Email: njmsbsu@gmail.com
Nigeria Journal of Management Sciences (NJMS), Benue State University
Banks Credits And Manufacturing Growth In Nigeria
Gbadebo Adedeji Daniel: Dept of Economics & Statistics, University of Benin, Benin City; adedeji.gbadebo@uniben.edu
Adekunle Ahmed Oluwatobi*: Dept of Accounting and Finance, Fountain University, Osogbo; tobiahamed@yahoo.com
Muritala Taiwo: Dept of Economics & Statistics, University of Benin, Benin City; adedeji.gbadebo@uniben.edu
Fadeyi Folarin Julius: Dept of Economics & Statistics, University of Benin, Benin City; fadeyifolarin@gmail.com
Abstract
The main objective of this paper is to investigate Banks credits and manufacturing growth in Nigeria from 1978 – 2015. The study employed secondary data, which was obtained from Central Bank of Nigeria Statistical bulletin (2015). The variables in the model have long run cointegration. In the results, three of the coefficient variables; Capital formation (CAP), Capacity utilization (CU) and Commercial bank loans to the manufacturing sector (BLM) have the correct signs and are significant at the 5 percent level. This is an indication that these variables determine manufacturing sector's growth in the long run. Crude oil production has a positive sign and is significant only at the 10 percent level. Thus, in the long run, crude oil production positively stimulates the growth of the manufacturing sector in Nigeria. This is explained by the oil revenue which is generated from crude oil production and is used to procure capital equipment and other inputs necessary for the growth of the manufacturing sector. It thus implies that proper deployment of oil revenues can enhance growth of the manufacturing sector in Nigeria.Key words: Banks Credits, Manufacturing Growth & Nigeria.
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