Title:
DEPOSIT MONEY BANK’S CREDIT AND INDUSTRIAL OUTPUT IN NIGERIA

Authors:
YUA, Henry; YUA, Paul Mkuma & OGBONNA, Kelechukwu Stanley, Nigeria

Abstract:

The study examines the role of Deposit Money Bank Credit on Industrial Output in Nigeria. The objectives are to ascertain the relationship between deposit money banks credit, money supply, inflation rate and lending rate on industrial output in Nigeria. The study employed time series data covering 1981 to 2018, sourced from CBN statistical bulletin and subjected them to ADF, ARDL Bound test and Parsimonious regression. The finding of the study revealed that deposit money bank credit and money supply have significant relationship with industrial output in Nigeria while Inflation rate and lending rate have an insignificant relationship industrial output. Further revealing showed that deposit money bank credit impacted industrial output in Nigeria. The findings therefore conclude that deposit money banks credit improve industrial output in Nigeria. Hence, the study recommended the need for government to increase its budgetary allocation for capital investments especially in infrastructure (power, roads and energy) which will have direct impact in driving down lending rates to single digit, boosting access to credit by the manufacturing sector, enhancing productivity and boosting industrial output in Nigeria