ABSTRACT

The study investigated the effect of bank lending rate on output of manufacturing sector in Nigeria. Time series data spanning from 1995 to 2017 was sourced from Central Bank of Nigeria statistical bulletin and the method of data analysis was the ordinary least squares (OLS) technique. Manufacturing sector output was measured by manufacturing sector contribution to real gross domestic product. Having analyzed the data, it was found that lending rate has a negative and insignificant effect on output of manufacturing sector in Nigeria. On the other hand, the effect of exchange rate and loans and advances was positive and significant on output of manufacturing sector in Nigeria. Based on the findings, it was recommended among other things that there should be review of monetary policy with the target of increasing money supply so as to be able to reduce the costs of borrowing (interest rate). The achievement of this will encourage investors to borrow more for productive activities.  

TABLE OF CONTENTS

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of contents vi

List of tables vii

Abstract viii

CHAPTER ONE

INTRODUCTION 1

1.1 Background of the Study 1

1.2 Statement of the Problem 3

1.3 Objective of the Study 4

1.4 Research Question 4

1.5 Research Hypotheses 5

1.6 Significance of the Study 6

1.7 Definition of Terms 6

1.8 Organization of the Study 6

CHAPTER TWO

REVIEW OF RELATED LITERATURE 7

2.0 Introduction 7

2.1 Conceptual Review 7

2.2.1 Conceptual Clarification of Interest Rate 7

2.1.2 The Concept of Sustainability in Manufacturing Sector 7

2.1.3 Interest Rate Charged on Borrowers 8

2.1.5 History of the Nigerian Manufacturing Sector 13

2.1.6 Structure and Performance of the Nigerian Manufacturing Sector 14

2.2 Theoretical Literature 17

2.2.1 Loan Pricing Theory 17

2.2.2 Firm Characteristics Theories 18

2.2.3. Theory of Multiple-lending 18

2.2.4 The Signaling Argument 18

2.2.5 Credit market theory 19

2.3 Empirical Review 22

CHAPTER THREE

RESEARCH METHODOLOGY 26

3.1 Research Design 26

3.2 Study Area 26

3.3 Sources of Data Collection 26

3.4 Method of Data Analysis 26

3.5 Model Specification 27

3.6 Technique for Analysis 27

CHAPTER FOUR

PRESENTATION OF DATA, ANALYSIS AND DISCUSSION 28

4.1 Presentation of Data 28

4.1.1 Descriptive Statistic 29

4.2 Analysis and Discussion of Findings 29

4.2.1 Regression Analysis 30

4.2.2 Hypotheses Testing 31

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 33

5.1 Summary of Findings 33

5.2 Conclusion 33

5.3 Recommendations 34

References

Appendix