Driving private sector credit in Nigeria
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LLC “Consulting Publishing Company “Business Perspectives”
Abstract
Description
There is some level of uncertainty as to whether private sector credit interacts with
finance sources for growth to significantly influence channeling funds for investible
purposes in Nigeria, given the nation’s unique characteristics. This study examines the
role of various sources of growth finance on private sector credit in Nigeria. For this
purpose, the study utilizes secondary data (1980–2018) sourced from CBN statistical
annual reports. The study further employs the ARDL-Bounds Co-integration test to
test out the hypothesis after stationarity testing. The study finds that stock market capitalization
had a positive and significant influence on private sector credit compared
to remittance inflows and gross domestic savings in the long run among the sources
of growth finance indicators. Furthermore, remittance inflows reported a positive but
statistically insignificant relationship, while gross domestic savings had a negative and
insignificant coefficient. The study concludes that only stock market development inflow
transmits to the private sector’s credit at 10 percent among the various growth finance sources.
Keywords
HG Finance, HJ Public Finance