Effects Of Commercial Banks Credit To Small Scale Industries On Economic Growth In Nigeria

ABSTRACT

Finances is crucial to any investment decision, this study however examined the effects of commercial banks credit to small scale industries on the Nigeria economic growth. The purpose of this study was to ascertain the effect of commercial bank credit to small scale industries in Nigeria and how it affected the Nigeria economic growth. However, the methodology adopted in this study was the use of secondary data, were OLS regression model was used to test and analyzed the data collected. The study found out that commercial banks credit has not contributed significantly on the output level of the small scale industries and growth of Nigeria economic growth, the reason being that commercial banks do not grant credit facilities to small scale industries rather, they prefer granting to large industries who return high profit to them. Therefore, we recommend that small scale industries should be given priority attention by the federal government and commercial banks in terms of credit and funding.