The Impact Of Commercial Bank On The Growth Of Nigeria Economy

ABSTRACT

This research work investigated the impact of Commercial Banks in the Nigerian economy for the period of 1981 - 2010. The data for the analysis was extracted from CBN statistical bulletin 2010 edition and subsequently analyzed using econometric model. A multiple regression equation was formulated and the results shows that Central Banks credit and advances has a direct or significant impact in the growth of the Nigerian economy. It also shows that gross domestic product have positive impact on the Nigerian economy. This restrict agrees with the economic assumptions and apriori expectation. Based on the research findings made, the research made some useful recommendation that commercial banks should be encouraged to give credit to agricultural sector, credit to industrial sector and credit to government sector of the economy and that the interest on these credit have to be checked in order not to scare investors away from getting capital need to run their business and boost the economy.