Effect of Deposit Money Banks' Credit on the Performance of Micro, Small and Medium Enterprises in Nigeria
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Central Bank of Nigeria
Abstract
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This paper set out to empirically evaluate the effect of deposit money banks' credit on the
performance of MSMEs in Nigeria, with the aid of a vector autoregression and error correction
mechanism (ECM) technique. Results of the empirical investigation confirmed credit had a
positive effect on GDP of MSMEs in Nigeria as the coefficient of CAM (credit to MSMEs) was
positive (1.0569) and significant at 1.0 per cent level. It was, therefore, recommended that
every effort should be made to improve access to credit by MSMEs, so that they could play their
potential roles of employment generation and wealth creation and move the majority of the
entrepreneurs out of poverty.
Keywords
H Social Sciences (General), HG Finance