SUMMARY OF THE
FINDINGS:
The study explored the
commercial bank credit and industrial growth in Nigeria, from 1980-2009. Our results
have shown that out of five variables use in estimating the model Four (i.e
MASO, CRIS, INTR, and INFR) has a positive relationship while one (EXR) only
shows a negative relationship with the dependent variable. Thus, on the same
not, four among the five variables use
is in line with their a-priori assumption expect interest rate.
However, the R2,
f-statistic were all significant the R2 ranks 67 percent variation
of industrial growth in Nigeria
as explain by the commercial bank credit and other independent variables. The
Durtin Waston statistic on the other hand shows that no presence of autocorrelation
in the model. Finally in this section, the results and discussion were able to
test the hypothesis of this study and found that the null hypothesis was
rejected while the alternative hypothesis made. i.e that there exist a positive
significant relationship between commercial banks Credit and the industrial
growth Nigeria
from 1980-2009 period of review.
CONCLUSION
In this research, we have
empirically verified and discussed the relationship of commercial bank credit
and industrial growth in Nigeria
from 1980-2009.
The aim of the study was to
ascertain the impact of commercial bank credit on industrial growth in Nigeria
economy. Generally, it is observed that crude oil production commercial bank
credit to industrial sector production commercial bank credit to industrial
sector has had a positive relationship and a significant impact on the industrial
growth in Nigeria.
This can be proved by the 67% R2 value, the T-statistics observed
value and their co-efficient value.
Consequently, base on the
results obtained and interpreted in chapter four above, the null hypothesis
which states that “there is no positive significant relationship between
commercial banks and industrial growth in Nigeria where rejected. Thus, from
the foregoing we can conclude that the commercial bank credit in Nigeria,
despite its reform in financial sector, effect positively on the industrial
growth in Nigeria
from 1980-2009.
RECOMMENDATION
Based on the findings of the
research work, we provide a set of policy recommendation to Nigeria
economy:-
1)
The commercial bank credit ratio / provision should be
diversified to productive investment sector’s that will yield even the capital
and also interest in the economy and back to the bank. This will enhance the
investor’s and banks good relationship.
2)
The government should encourage more private company
participation in some industry. So that better equipped industries can be eg
refineries built and the cost of their product will reduce, this will enable
competitive environment in the economy.
3)
Security should be boosted in commercial and all kind of
banks, industries and economy as whole, this will help reduce the loss of life,
properties, even from illegal export of crude oil product of the high sea where
crude oil products and other industrial products are being smuggled.
4)
There is the urgent need for Nigeria to diversify there credit
facilities, the rate of interest, and other industrial market especially the
oil market. High priority should be given to non oil productive sector; instead
of concentrating on oil sector alone.
Government should give immediate attention to
the indigenous industrial to enable then to compete with the other countries
industry.