ABSTRACT

The study examined the impact of commercial banks credit on the Nigerian economy. The data was secondary data sourced from Central Bank of Nigeria statistical bulletin. Multiple regression of ordinary least square (OLS) technique of analysis was used. The result from the study revealed that total banks credit to the private sector has positive but insignificant impact on the gross domestic product of Nigeria, while broad money supply M2 has positive and significant impact on the gross domestic product of Nigeria.  Based on the findings the study therefore, concludes that commercial banks credit has positive and significant impact on the Nigerian economy hence, recommended that adequate savings should be mobilized by commercial banks from the public by emphasizing more on savings there by government through CBN encouraging commercial banks in Nigeria to lend to the private sector and providing interest rate subsidies, lower the lending rate and other incentives should be given to the private sector investors to enhance investments in Nigeria which will impact positively and significantly to the Nigerian economy and that direct credit control should be adopted by the CBN in other to improve the contribution of the informal sector.

TABLE OF CONTENT

Title page i 

Declaration ii 

Certification iii

Dedication iv

Acknowledgement v

Table of content vi

List of tables ix

Abstract    x

CHAPTER ONE: INTRODUCTION

1.1 Background Of The Study 1 

1.2 Statement Of Problem 3

1.3 Objective Of Study 4

1.4 Research Questions 4

1.5 The Statement Of Hypotheses 4

1.6 Scope of the study 4

1.7 Limitation Of The Study 5

1.8 Definition Of Terms 5

1.9 Significance Of The Study 6

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Concept Framework 7

2.1.1 The Credit Channels 7

2.1.2 The Concept Of Economic Growth 7

2.1.3   The Main Characteristics Of Economic Growth 8

2.2      Theoretical Framework 8

2.2.1 The Model Of Growth 9

2.2.2 Endogenous Growth Theory/New Growth 10

2.3     Empirical Review 10

CHAPTER THRE: RESEARCH METHODOLOGY

3.1 Research Design 19

3.2 The Area Of The Study 19

3.3 Nature and Sources of Data 19

3.4 Model Specification 19

3.5 Techniques of Analysis 20

3.6       Description of variables 20

3.6.1    Dependent variable 20

3.6.2    Independent variable 21

CHAPTER FOUR:

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1 Data presentation 22 

4.2 Regression Analysis and interpretation of Result 23

4.3 Test of Hypotheses 23

4.3.1: Test of Hypothesis one 23

4.3.2: Test of Hypothesis two 24

4.4 Discussion of findings 25

CHAPTER FIVE:

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings 26

5.2 Conclusion 26

5.3 Recommendations 27

REFERENCES