Banks Financing and Industrial Sector Performance in Nigeria

Akinwumi Olusegun Akinola; Omotayo Olubunmi Efuntade; Alani Olusegun Efuntade

doi:doi:10.11648/j.ijafrm.20200503.15

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Banks Financing and Industrial Sector Performance in Nigeria

Akinwumi Olusegun Akinola, Omotayo Olubunmi Efuntade, Alani Olusegun Efuntade

Published in International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 3)

Received: 22 July 2020 Accepted: 19 August 2020 Published: 27 August 2020

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Abstract

This paper examined the effect of banks financing on industrial sector growth in Nigeria. The objectives of the Study were to examine the effects of domestic money supply, banks credit and maximum bank lending rate on industrial sector performance in Nigeria. The Study is established on Bank-based monetary framework on the grounds that the hypothesis focuses on the positive functions of banks in industrial growth and development. Descriptive and Ex-post facto research designs were adopted to investigate the contribution of various bank financing variables to industrial sector growth measured by manufacturing sector output in Nigeria over a period of 15 years (2004-2018). Method of analysis was the linear regression model using fully modified ordinary least square model to estimate the individual effects of banks financing variables measured by banks credits, domestic money supply, and maximum bank lending rate on industrial sector growth measured by manufacturing sector output. The study revealed that industrial sector growth is strongly impacted upon by banks credits, domestic money supply, and maximum bank lending rate. The study concluded that, there is positive significant relationship between bank credits, domestic money supply and growth in the industrial sector. Therefore, the study recommended that, banks should continue to support the industrial sector through credit borrowing, this way, the dwindling nature of Nigeria industrial sector can be redressed through adequate credits provided by these banks. However, these credits should be given at lower interest rate.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 3)
DOI	10.11648/j.ijafrm.20200503.15
Page(s)	157-166
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Banks Financing, Banks Credit, Domestic Money Supply, Manufacturing Sector Output, Maximum Bank Lending Rate

References

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APA Style

Akinwumi Olusegun Akinola, Omotayo Olubunmi Efuntade, Alani Olusegun Efuntade. (2020). Banks Financing and Industrial Sector Performance in Nigeria. International Journal of Accounting, Finance and Risk Management, 5(3), 157-166. https://doi.org/10.11648/j.ijafrm.20200503.15

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ACS Style

Akinwumi Olusegun Akinola; Omotayo Olubunmi Efuntade; Alani Olusegun Efuntade. Banks Financing and Industrial Sector Performance in Nigeria. Int. J. Account. Finance Risk Manag. 2020, 5(3), 157-166. doi: 10.11648/j.ijafrm.20200503.15

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AMA Style

Akinwumi Olusegun Akinola, Omotayo Olubunmi Efuntade, Alani Olusegun Efuntade. Banks Financing and Industrial Sector Performance in Nigeria. Int J Account Finance Risk Manag. 2020;5(3):157-166. doi: 10.11648/j.ijafrm.20200503.15

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@article{10.11648/j.ijafrm.20200503.15,
  author = {Akinwumi Olusegun Akinola and Omotayo Olubunmi Efuntade and Alani Olusegun Efuntade},
  title = {Banks Financing and Industrial Sector Performance in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {3},
  pages = {157-166},
  doi = {10.11648/j.ijafrm.20200503.15},
  url = {https://doi.org/10.11648/j.ijafrm.20200503.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200503.15},
  abstract = {This paper examined the effect of banks financing on industrial sector growth in Nigeria. The objectives of the Study were to examine the effects of domestic money supply, banks credit and maximum bank lending rate on industrial sector performance in Nigeria. The Study is established on Bank-based monetary framework on the grounds that the hypothesis focuses on the positive functions of banks in industrial growth and development. Descriptive and Ex-post facto research designs were adopted to investigate the contribution of various bank financing variables to industrial sector growth measured by manufacturing sector output in Nigeria over a period of 15 years (2004-2018). Method of analysis was the linear regression model using fully modified ordinary least square model to estimate the individual effects of banks financing variables measured by banks credits, domestic money supply, and maximum bank lending rate on industrial sector growth measured by manufacturing sector output. The study revealed that industrial sector growth is strongly impacted upon by banks credits, domestic money supply, and maximum bank lending rate. The study concluded that, there is positive significant relationship between bank credits, domestic money supply and growth in the industrial sector. Therefore, the study recommended that, banks should continue to support the industrial sector through credit borrowing, this way, the dwindling nature of Nigeria industrial sector can be redressed through adequate credits provided by these banks. However, these credits should be given at lower interest rate.},
 year = {2020}
}

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TY  - JOUR
T1  - Banks Financing and Industrial Sector Performance in Nigeria
AU  - Akinwumi Olusegun Akinola
AU  - Omotayo Olubunmi Efuntade
AU  - Alani Olusegun Efuntade
Y1  - 2020/08/27
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200503.15
DO  - 10.11648/j.ijafrm.20200503.15
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 157
EP  - 166
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200503.15
AB  - This paper examined the effect of banks financing on industrial sector growth in Nigeria. The objectives of the Study were to examine the effects of domestic money supply, banks credit and maximum bank lending rate on industrial sector performance in Nigeria. The Study is established on Bank-based monetary framework on the grounds that the hypothesis focuses on the positive functions of banks in industrial growth and development. Descriptive and Ex-post facto research designs were adopted to investigate the contribution of various bank financing variables to industrial sector growth measured by manufacturing sector output in Nigeria over a period of 15 years (2004-2018). Method of analysis was the linear regression model using fully modified ordinary least square model to estimate the individual effects of banks financing variables measured by banks credits, domestic money supply, and maximum bank lending rate on industrial sector growth measured by manufacturing sector output. The study revealed that industrial sector growth is strongly impacted upon by banks credits, domestic money supply, and maximum bank lending rate. The study concluded that, there is positive significant relationship between bank credits, domestic money supply and growth in the industrial sector. Therefore, the study recommended that, banks should continue to support the industrial sector through credit borrowing, this way, the dwindling nature of Nigeria industrial sector can be redressed through adequate credits provided by these banks. However, these credits should be given at lower interest rate.
VL  - 5
IS  - 3
ER  -

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Author Information

Akinwumi Olusegun Akinola

Department of Accounting, Achievers University, Owo, Nigeria
Omotayo Olubunmi Efuntade

Department of Economics and Demographic Studies, Federal University, Oye Ekiti, Nigeria
Alani Olusegun Efuntade

Office of the Vice Chancellor, Federal University, Oye Ekiti, Nigeria

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Akinwumi Olusegun Akinola, Omotayo Olubunmi Efuntade, Alani Olusegun Efuntade. (2020). Banks Financing and Industrial Sector Performance in Nigeria. International Journal of Accounting, Finance and Risk Management, 5(3), 157-166. https://doi.org/10.11648/j.ijafrm.20200503.15

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ACS Style

Akinwumi Olusegun Akinola; Omotayo Olubunmi Efuntade; Alani Olusegun Efuntade. Banks Financing and Industrial Sector Performance in Nigeria. Int. J. Account. Finance Risk Manag. 2020, 5(3), 157-166. doi: 10.11648/j.ijafrm.20200503.15

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AMA Style

Akinwumi Olusegun Akinola, Omotayo Olubunmi Efuntade, Alani Olusegun Efuntade. Banks Financing and Industrial Sector Performance in Nigeria. Int J Account Finance Risk Manag. 2020;5(3):157-166. doi: 10.11648/j.ijafrm.20200503.15

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@article{10.11648/j.ijafrm.20200503.15,
  author = {Akinwumi Olusegun Akinola and Omotayo Olubunmi Efuntade and Alani Olusegun Efuntade},
  title = {Banks Financing and Industrial Sector Performance in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {3},
  pages = {157-166},
  doi = {10.11648/j.ijafrm.20200503.15},
  url = {https://doi.org/10.11648/j.ijafrm.20200503.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200503.15},
  abstract = {This paper examined the effect of banks financing on industrial sector growth in Nigeria. The objectives of the Study were to examine the effects of domestic money supply, banks credit and maximum bank lending rate on industrial sector performance in Nigeria. The Study is established on Bank-based monetary framework on the grounds that the hypothesis focuses on the positive functions of banks in industrial growth and development. Descriptive and Ex-post facto research designs were adopted to investigate the contribution of various bank financing variables to industrial sector growth measured by manufacturing sector output in Nigeria over a period of 15 years (2004-2018). Method of analysis was the linear regression model using fully modified ordinary least square model to estimate the individual effects of banks financing variables measured by banks credits, domestic money supply, and maximum bank lending rate on industrial sector growth measured by manufacturing sector output. The study revealed that industrial sector growth is strongly impacted upon by banks credits, domestic money supply, and maximum bank lending rate. The study concluded that, there is positive significant relationship between bank credits, domestic money supply and growth in the industrial sector. Therefore, the study recommended that, banks should continue to support the industrial sector through credit borrowing, this way, the dwindling nature of Nigeria industrial sector can be redressed through adequate credits provided by these banks. However, these credits should be given at lower interest rate.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Banks Financing and Industrial Sector Performance in Nigeria
AU  - Akinwumi Olusegun Akinola
AU  - Omotayo Olubunmi Efuntade
AU  - Alani Olusegun Efuntade
Y1  - 2020/08/27
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200503.15
DO  - 10.11648/j.ijafrm.20200503.15
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 157
EP  - 166
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200503.15
AB  - This paper examined the effect of banks financing on industrial sector growth in Nigeria. The objectives of the Study were to examine the effects of domestic money supply, banks credit and maximum bank lending rate on industrial sector performance in Nigeria. The Study is established on Bank-based monetary framework on the grounds that the hypothesis focuses on the positive functions of banks in industrial growth and development. Descriptive and Ex-post facto research designs were adopted to investigate the contribution of various bank financing variables to industrial sector growth measured by manufacturing sector output in Nigeria over a period of 15 years (2004-2018). Method of analysis was the linear regression model using fully modified ordinary least square model to estimate the individual effects of banks financing variables measured by banks credits, domestic money supply, and maximum bank lending rate on industrial sector growth measured by manufacturing sector output. The study revealed that industrial sector growth is strongly impacted upon by banks credits, domestic money supply, and maximum bank lending rate. The study concluded that, there is positive significant relationship between bank credits, domestic money supply and growth in the industrial sector. Therefore, the study recommended that, banks should continue to support the industrial sector through credit borrowing, this way, the dwindling nature of Nigeria industrial sector can be redressed through adequate credits provided by these banks. However, these credits should be given at lower interest rate.
VL  - 5
IS  - 3
ER  -

Copy | Download