Impact on Bank Lending on Industrial Development in Nigeria: 1999-2008

Description

– Impact on Bank Lending on Industrial Development in Nigeria: 1999-2008 –

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Abstract

This study was carried out to examine the impact of banking lending on industrial development in Nigeria. The objectives of the study were to examine the impact of bank lending on industrial development in Nigeria and to examine the relationship between bank lending and employment in the industrial sector.

The method used in gathering data for this study was from the publication of the Central Bank of Nigeria and the Federal office of statistics. The method used in testing the hypothesis was an analysis of variance (ANOVA) and regression analysis. Data was analyzed into gross domestic product and loan from 1999 to 2008.

At the end of this work, the researcher made the following findings: (a) Industrial development will be achieved through promotion and encouragement of the small and medium scale industries in the country. (b) The industrial sector in Nigeria has been largely stunted in growth, since the era of the failed import substitution strategy of the 1960s.

Introduction

Industries are found both in developed and developing nations of the world, and they form the bedrock of economic development of any country and essentially their impact is felt around the world Through bank lending, the industrialization development in Nigeria will grow from small scale to medium-scale and too large scale industry.

Ekukanam (1999), notes with deep concern that the development of industries in Nigeria will provide solutions not only to the basic economic problems but also to social problems like unemployment, poverty and over-dependence.

The development of industries through bank lending is not just an effective way of contributing to the diversification and development to the economy and thus the standard of living but also one of the principal means of attaining social and political emancipation of the people of the society.

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