ABSTRACT

The study was design to investigate the impact of commercial bank lending on manufacturing sector performance in Nigeria covering the period of (2005 – 2017). The objective of the study were: To investigate the impact of commercial bank lending rate on manufacturing sector performance in Nigeria. To evaluate the impact of commercial bank loan and advance on manufacturing sector performance in Nigeria. Ordinary least square technique was employed to draft out findings and thus: Commercial bank lending rate has an insignificant effect on the manufacturing sector performance in Nigeria. Commercial bank loan and advance has a significant effect on the manufacturing sector performance in Nigeria. Base on the findings, the study recommends that, government through the Central Bank of Nigeria should pursue policies that lower lending rate especially to the investors in order to increase the output of the manufacturing sector in Nigeria. Despite the significant effect, there is need for policy makers should encourage commercial banks to continue giving out loan and advance especially to manufacturing companies to keep improving productivity through upgrading of its technologies. Thus, increasing the manufacturing sector in Nigeria.

TABLE OF CONTENTS

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of contents vi

List of tables ix

Abstract x

CHAPTER 1

INTRODUCTION

1.1    Background to the Study 1

1.2 Statement of the Problem 2

1.3 Objectives of the Study 2

1.4 Research Questions 4

1.5 Hypotheses 5

1.6 Significance of the Study 5

1.7    Scope of the Study 6

1.8 Limitations of the Study 6

1.9 Definition of Terms  6

CHAPTER   2

REVIEW OF RELATED LITERATURE

2.1 Conceptual Review           7-8

2.1.1 Overview of the Nigerian Manufacturing Sector           9-10

2.1.2 Structure of the Nigerian Manufacturing Sector 11

2.1.3 Limitations of the Manufacturing Sub-sectors 11

2.1.4 Limitations of the Financial Sector           12-14

2.1.5 Determinants of Commercial Banks’ Lending Behaviors in Nigeria           15-18

2.2    Nigerian Gross Domestic Product Concept           19-21

2.3 Commercial Banks Credits and Manufacturing Sector output in Nigeria.             22-23

2.4 Theoretical Review 24

2.4.1 Loan Pricing Theory 24

2.4.2 Theory of Multiple Lending 25

2.4.3 Credit Market Theory 25

2.4.4 Loanable Funds Theory 25

2.5 Empirical Review           26-29

CHAPTER   3

RESEARCH METHODOLOGY

3.1 Research Design 30

3.2 Data Collection and Instrument 30

3.3 Model Specification 30

3.4 Description of Variables 30

3.4.1 Manufacturing Output 31

3.4.2 Commercial Bank Loans 31

3.4.3 Commercial Bank Interest Rate 32

3.5 Techniques of Analysis 32

3.6 Decision Rule 32

CHAPTER 4

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1 IntroductionTable1: Data Presentation 33

4.2 Presentation of Ordinary Least Square Regression (OLS) Result. 34

4.2.1 Impact of Commercial Bank Lending Rate on the Manufacturing Sector 34

4.2.2 Evaluation Based on Theoretical Criteria (A Priori Expectations

Based on Commercial bank lending rate 34

4.3 The Statistical Criteria (First Order) Test 35

4.3.1 Coefficient of Determination (R2) 36

4.3.2 The t-Statistic (Test of Hypothesis) 36

4.4.3 The F-Test             37-38

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings 39

5.2 Conclusion 39

5.3 Recommendations 40

REFERENCES 41

APPENDIX 4

LIST OF TABLES

Table1: Data Presentation 33

Table 2: Dependent Variables 34

Table 3: Tabular representation of the T-statistic results 37