IMPACT ON BANK LENDING ON INDUSTRIAL DEVELOPMENT IN NIGERIA 1999-2008

IMPACT ON BANK LENDING ON INDUSTRIAL DEVELOPMENT IN NIGERIA 1999-2008

ABSTRACT

This study was carried out to examine the impact of banking lending on industrial development in Nigeria. The objectives of the study was 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 publication of the Central Bank of Nigeria and the Federal office of statistics. The method used in testing hypothesis was 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 encouraging 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. Also the researcher made the following recommendation; (a) Financial assistance could be extended by banks as part of the preventive measure. (b) The policy of the import substitution and export promotion should be stipulated by the government to encourage infant industries. (c) The findings are expected to provide insight into likely contemporary policy choices facing a typical Nigeria economy in the pursuit of an export-led industrialization strategy.