Title: Deposit Money Bank Lending and Economic Growth in Nigeria
Authors: Andrew E.O Erhijakpor, PhD
Volume: 9
Issue: 2
Pages: 1-8
Publication Date: 2025/02/28
Abstract:
With a view to providing reasonable insights for policymakers and financial institutions aimed at the promotion of robust and sustainable economic development, the study specifically used credit to the private sector (CRESEC), loan-to-deposit ratio (LOADR), bank lending rate (BALER), and broad money (BROMO) and their effect on E-Growth. Already existing data from CBN bulletin were obtain for 32years. Cogent statistics were carried out among which error correction model was used to examine the bearing of the explanatory variables. Sequel to the results, on the short run only BROMO exerted meaningful influence while others were non-significant at 0.05. At the long run, CRESEC and BROMO exerted significant influence on E-Growth while others were not. Base on that, the study concluded that CRESEC and BROMO are the most important determinant of E-Growth in Nigeria. The study recommends that, more credits should be given to productive activities in the economy as it will foster E-Growth. Also, since broad money supply is significant, there should be a balance in supply so as to guide against negative correlational outcomes.