Impact of Commercial Banks Credit on Industrial Growth in Nigeria (1981-2016)
This study intends to investigate the impact of commercial banks credit on industrial growth in Nigeria. The data used in this study were obtained from secondary sources in that annual time series data on, industrial output, commercial banks loan to industrial sector, the exchange rate and the interest rate. The method of data analysis used is Vector Autoregressive (VAR) Model. The result of this study shows that the commercial banks loan to the industrial sector and the interest rate have negative relationship with industrial output and are significant to industrial output while the exchange rate has a positive relationship with industrial output and it is also significant to industrial output for the period under review. This brings into focus the need to provide adequate financing , stabilized exchange rate, reduced interest rate and provides effective monitoring of the loan disbursed by commercial banks.
Keywords: Commercial Bank Loan, Exchange Rate, Interest Rate, Industrial Growth, Industrial Output.