DEPOSIT MONEY BANK LENDING AND THE GROWTH OF THE PRIVATE SECTOR IN NIGERIA

Thesis Abstract

This study is aimed at examining the effect of deposit money bank lending on the growth of private sector in Nigeria between 1995 and 2015. This study adopted the expost facto research design, in order to achieve the objectives stated in the study. Data used in the study was obtained through secondary sources from CBN statistical bulletin and, internet browsing, etc. The ordinary least square multiple regression technique was used to test the hypotheses stated in the study. From the findings, it was discovered that deposit money bank lending has a significant relationship with domestic private investments and manufacturing output as indicators of private sector growth. It was also realized that bank loans was statistically related with domestic private investments, while money supply indicated a statistically significant relationship with Manufacturing Output. It was concluded that deposit money bank lending has a significant positive effect on the growth of the private sector in Nigeria. Therefore, it was recommended that greater efforts should be structured toward increased short, medium and long term loans to private sector investors, as well as the manufacturing sector, agricultural sector and SMEs, as they constitute an integral part of the growth and transformation process of an economy like that of Nigeria.