Impact of Commercial Bank's Credits on Manufacturing Output in Nigeria: An Ex-post Factor Research Design Approach

Abstract

This study employed an empirical analysis to investigate the impact of commercial banks' credit (CBC) on manufacturing sector output (MSO) from 1992 to 2021. The approach utilised is Ex-Post Facto Research Design. The study’s findings indicated that CBC has a beneficial and substantial influence on MSO. The long-term value of CBC has a positive and substantial impact on MSO. A 1% rise in Credit to Small and Medium Businesses (CSM) led to a 0.1866% increase in MSO. Conversely, a unit increase in deposit interest rate (DINR) resulted in a 0.0081% fall in MSO. In the long run, a unit increase in Government Capital Expenditure (GOV) caused a 0.1482% increase in MSO. Therefore, through its monetary authority, the Government makes an efficient policy that allows the manufacturing sector and small and medium enterprises to access bank credit at low interest rates.