KOGI STATE
Faculty of Management Sciences
Journal of MANAGEMENT
ISSN: 3212 - 3122
Ibeabuchi-Ani Ogechi; Ihemeje, J.C. Ugwuanyi, G. O. and Useh, Udeme Francis
Abstract
This study examined the impact of banking system credit to small and medium-scale enterprises (SMEs) on economic growth in Nigeria. Specifically, the study investigated the impact of Banking System Credit to small and medium-scale enterprises, banking system credit to SMEs as percentage of total credit to private sector, and lending rate on economic growth and per capita income in Nigeria. This study used secondary data obtained from the Central Bank of Nigeria Statistical Bulletin 2021.The study period was 8 years (i.e. 2013-2021). The study adopted ex-ex-post facto research design via making use of data already in existence Descriptive and inferential statistics - multiple regression analyses were used to analyse with E-View 9 software. The result indicated that Banking System Credit to SMEs has significant impact on the economic growth in Nigeria. Specifically, banking system credit to small and medium-scale enterprises (SMEs) has positive and insignificant impact on economic development in Nigeria. Secondly, banking system credit to SMEs as percentage of total credit to private sector has negative and significant influence on economic growth in Nigeria. Similarly, lending rate has negative and significant effect on economic growth in Nigeria. Also, banking system credit to SMEs, Percentage of Banks credit to SMEs to Private Sector Credit have positive and insignificant impact per capita income of Nigeria which  lending rate has negative and insignificant impact of per capita income of Nigeria The study recommended  among other things that the banks should extend more credits to the SMEs. This is because the banks credit to SMEs has positive but insignificant impact on economic growth in Nigeria. Also, the lending rate should be reduced since an increase in the lending rate will further constrained credit to SMEs.
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Keywords
Nigeria banking credit system, SMEs, economic development and Nigerian economy
Full Article

IMPACT OF BANKING SYSTEM CREDIT TO SMALL AND MEDIUM SCALE ENTERPRISES ON ECONOMIC DEVELOPMENT IN NIGERIA

UNIVERSITY, ANYIGBA

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