This study investigates the effect of bank lending management on economic growth in Nigeria for the period 1985-2018. The data for the study were obtained from the Central Bank of Nigeria Bulletins, World Development Indicator and National Bureau of Statistics. The variables for the study include Gross Domestic Product, Deposit Interest Rate, Lending Interest Rate, Bank Asset Quality and Deposit Multiplier. Data for the study was analyzed using Descriptive Statistics, Ordinary Least Square method (OLS) and Multiple Regression Analysis. The result of short and long run regression revealed a negative impact of bank lending management on economic growth. The F-statistic (6.67) was also used to test explanatory power of the model with the corresponding probability value of (0.0007) which is statistically significant at 5%, suggesting that the explanatory variables have joint and significant effect on the economic growth of Nigeria. It is recommended that the regulatory authority set up a regulatory framework that will enhance the capacity of deposit money banks in Nigeria to lend to real sector of the economy at a very low interest rate and attract massive deposit by investors through robust deposit interest rate.
Keywords: Financial Sector, Lending, Management, economic growth
