Private Sector Credit and Entrepreneurial Growth in Nigeria (1986 – 2018)

Finance & Economics Review

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Field Value
 
Title Private Sector Credit and Entrepreneurial Growth in Nigeria (1986 – 2018)
 
Creator Nwajiaku, Eric Okwuchukwu
Esan, Dr. Benson Aisagbonbuomwan
Ananwude, Amalachukwu
 
Subject Private Sector Credit, Entrepreneurial Growth, Nigeria
 
Description Purpose: The role of entrepreneurial activities in the economic development process cannot be underestimated. How entrepreneurial growth in Nigeria has been affected by commercial banks’ credit to the private sector was examined in this study.
Methods: Autoregressive Distributive Lag (ARDL) was the estimation technique applied, while the Granger Causality was for effect assessment using annual data from 1986 to 2018.
Result: The study found that entrepreneurial growth in Nigeria was significantly affected by private sector credit.
Implications: There is a need for banks to cut down their fee on lending to entrepreneurs. Commercial banks charge as high as 22 percent to give loans to the private sector, and this is considered among the highest in the world. This makes it difficult for entrepreneurs to access fund from banks which make them resort to co-operative societies for finance. Equally, the Central Bank of Nigeria should lower the monetary policy rate to a single digit, let say 9 percent as against the current rate of 14 percent. This to a reasonable degree will make banks at least lower their fee/interest rate to lend to entrepreneurs.
 
Publisher Research & Innovation Initiative
 
Date 2020-09-24
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://riiopenjournals.com/index.php/finance-economics-review/article/view/172
10.38157/finance-economics-review.v2i3.172
 
Source Finance & Economics Review; Vol 2 No 3 (2020): Finance & Economics Review; 14-24
2690-4063
10.38157/finance-economics-review.v2i3
 
Language eng
 
Relation https://riiopenjournals.com/index.php/finance-economics-review/article/view/172/76
 
Rights Copyright (c) 2020 Eric Okwuchukwu Nwajiaku, Dr. Benson Aisagbonbuomwan Esan, Amalachukwu Ananwude
http://creativecommons.org/licenses/by-nc-nd/4.0
 

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