IMPACT OF COMMERCIAL BANK LENDING RATES ON ECONOMIC GROWTH IN NIGERIA (1986 – 2020)

Abstract

This study investigated the effect of commercial bank lending rates on economic growth in Nigeria between 1989 and 2020. It specifically examined the connections between bank lending rate and Nigerian economic growth using data from various
issues of the Statistical Bulletin of the Central Bank of Nigeria. Multiple regression technique was used to determine this synergy. The findings indicate that any one percent increase in credit to private sectorand commercial banking lending wouldsignificantly increase economic growth in Nigeria by 23 and 33 percent, respectively. These finding suggest that viable credit to private sector with relevant
financial instruments should be encouraged to develop and provide larger credit facilities in order to improve economic growth in Nigeria.