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Impact of rising interest rate on manufacturing sector of the nigeria economy

 

Table Of Contents


Title page   –       –       –       –       –       –       –       –       –       –       i Declaration           –       –       –       –       –       –       –       –       –       –       ii Approval page     –       –       –       –       –       –       –       –       –       iii Dedication –       –       –       –       –       –       –       –       –       –       iv Acknowledgment –       –       –       –       –       –       –       –       –       v Abstract     –       –       –       –       –       –       –       –       –       –       vi Table of contents –       –       –       –       –       –       –       –       –       vii

         

Chapter ONE

 1.1     Background of the study         –       –       –       –       –       –       –       1 1.2     Statement of Problems   –       –       –       –       –       –       –       1.3     Objectives of the study –       –       –       –       –       –       –       1.4     Research Question         0-     –       –       –       –       –       –       –       1.5     Significance of the study         –       –       –       –       –       –       –       1.6     Scope and limitation of the study     –       –       –       –       –       1.7     Definition of terms         –       –       –       –       –       –       –       –

         

Chapter TWO

 2.1     Definition   –       –       –       –       –       –       –       –       –       2.2     Historical Development of Interest Rate     –       –       –       –       2.3     Concept of Manufacturing Sector     –       –       –       –       –       2.4     Nigerian Economy         –       –       –       –       –       –       –       –       2.5     Policies of Interest Rate –       –       –       –       –       –       –      

         

Chapter THREE

 3.0     Introduction         –       –       –       –       –       –       –       –       3.1     Research Design   –       –       –       –       –       –       –       –       3.2     Area of Study       –       –       –       –       –       –       –       – 3.3     Population of Study     –       –       –       –       –       –       –       3.4     Sampling Technique     –       –       –       –       –       –       – 3.5     Data Collection and Instrument       –       –       –       –       –       – 3.6     Validity and Reliability of Instrument       –       –       –       –       – 3.7     Administration of the Instrument     –       –       –       –       –       3.8     Method of Data Analysis       –       –       –       –       –       –       –      

         

Chapter FOUR

 4.0     Introduction         –       –       –       –       –       –       –       –       –       4.1     Data Presentation         –       –       –       –       –       –       –       – 4.2     Data Analysis     –       –       –       –       –       –       –       –        

Chapter FIVE

 5.0     Introduction         –       –       –       –       –       –       –       –       –       5.1     Summary   –       –       –       –       –       –       –       –       –       5.2     Conclusion –       –       –       –       –       –       –       –       –       5.3     Recommendation –       –       –       –       –       –       –       –       Reference Appendices


Thesis Abstract

Abstract
The manufacturing sector plays a crucial role in the economy of Nigeria, contributing significantly to the country's GDP, employment, and overall economic growth. However, the sector is highly sensitive to changes in interest rates, which can have a profound impact on its performance and competitiveness. This study aims to investigate the impact of rising interest rates on the manufacturing sector of the Nigerian economy. Interest rates are a key determinant of the cost of borrowing for businesses in the manufacturing sector. As interest rates rise, the cost of borrowing increases, leading to higher production costs for manufacturers. This can result in reduced investments in new projects, lower production levels, and decreased competitiveness in both domestic and international markets. Additionally, rising interest rates can also lead to a decrease in consumer spending as borrowing becomes more expensive, further affecting the demand for manufactured goods. The impact of rising interest rates on the manufacturing sector is not uniform across all industries within the sector. Some industries may be more heavily affected due to their reliance on external financing, while others with lower capital intensity may be less impacted. Understanding these differential effects is crucial for policymakers and industry stakeholders to develop targeted strategies to mitigate the adverse effects of rising interest rates. Moreover, the exchange rate dynamics also play a significant role in shaping the impact of rising interest rates on the manufacturing sector. An appreciation of the local currency due to higher interest rates can make exports more expensive and imports cheaper, affecting the competitiveness of domestic manufacturers in both domestic and international markets. On the other hand, a depreciation of the local currency can have mixed effects, as it may make exports more competitive but also increase the cost of imported inputs. In conclusion, the impact of rising interest rates on the manufacturing sector of the Nigerian economy is a complex and multifaceted issue that requires careful consideration. By understanding the differential effects across industries, the role of exchange rate dynamics, and the overall macroeconomic environment, policymakers can develop targeted interventions to support the resilience and growth of the manufacturing sector in the face of rising interest rates.

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