BANK CREDIT ADMINISTRATION AND THE GROWTH OF NIGERIA ECONOMY

ABSTRACT

This research investigates the relationship between bank credit administration practices and the economic growth of Nigeria. Employing a longitudinal research design, data was collected from financial reports, economic databases, and academic literature. A sample of ten banks listed on the Nigeria Stock Exchange was selected using a stratified random sampling technique. Regression analysis, correlation analysis, and time-series analysis were conducted to analyze the data. The findings reveal a statistically significant positive correlation between lending rates and GDP, suggesting that higher lending rates coincide with increased economic activity. However, the correlation between total loan rates and GDP, as well as interest rates and GDP, was weak and statistically insignificant. The study concludes that lending rates may play a more prominent role in influencing economic growth compared to total loan rates or general interest rates. However, it acknowledges the need for further investigation into other significant factors that influence GDP in Nigeria.Based on the findings, recommendations are made for the Government of Nigeria, including implementing targeted monetary policies, promoting financial sector development, investing in data collection and analysis, and fostering collaboration with stakeholders. Overall, this research contributes to the understanding of the complex dynamics between loan rates and economic growth in Nigeria, providing valuable insights for policymakers and future research endeavors.