Deposit Money Banks’ Credit and Economic Performance in Nigeria

Sinime Sarah Cocodia; Okanlawon Adeoluwa; Prof. Andabai; Priye Werigbelegha; Ph.D

doi:10.56201/ijbfr.vol.12.no8.2026.pg18.31

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Deposit Money Banks’ Credit and Economic Performance in Nigeria

Sinime Sarah Cocodia and Okanlawon Adeoluwa, Prof. Andabai, Priye Werigbelegha, Ph.D

Abstract

The study examines the impact of deposit money banks’ credit on economic performance in Nigeria; for the period 1997-2025. Secondary data are collected from the Central Bank Nigeria Statistical Bulletin, 2025. The study applied ex-post-facto research design to source requisite information. The variables used in the study are: Gross Domestic Product and was employed as the dependent variable to measure the economic performance; whereas, deposit money banks loan to industrial sector, commercial banks loan to construction sector, commercial banks to services sector and commercial banks branches were used as explanatory variables. The Ordinary Least Square econometric technique was used for the analysis. Thus, the study shows that commercial banks loan to industrial sector has a negative insignificant impact on Gross Domestic Product in Nigeria. Commercial banks loan to construction sector has a negative insignificant impact on the Gross Domestic Product in Nigeria. Commercial banks loan to services sector has a positive significant impact on Gross Domestic Product in Nigeria. Commercial banks branches have a negative insignificant impact on Gross Domestic Product in Nigeria. The coefficient of determination indicates about 63% of the variations in Nigerian performance can be explained by changes in deposit money banking variables. The study concludes that deposit money banks’ credit has a positive significant impact on economic performance in Nigeria. The study recommended that policy makers should ensure that monetary policies must properly be structured towards stimulating and encouraging financial economy. Regulatory authorities should also ensure that banks must engaged in constant training and retraining of staff for higher skill for the purpose of achieving efficient and effective service delivery to customers. CBN and policy makers should ensure effective and vibrant management of their resources focusing on risk management and ensure good corporate governance. Policy makers should put more efforts in bank supervision in order to restore confidence in the industry

Keywords

Deposit Money Banks’ CreditEconomicPerformanceNigeria

References

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Deposit Money Banks’ Credit and Economic Performance in Nigeria

Abstract

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References

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