Tag Archives: Lending Rate

Oil Resource Abundance and Agricultural Productivity in Nigeria: An Autoregressive Distributed Lag Approach (Published)

This paper analyzed and estimated the impact of oil abundance on agricultural productivity in Nigeria for the sample period of 1980 – 2018. The Autoregressive Distributed Lag model (ARDL) estimated with the Ordinary Least Square technique was used to examine the relationship among the variables. Findings from the model revealed that there was a negative and significant relationship between oil abundance and agricultural productivity in the short run while a negative and insignificant relationship existed in the long run. There was a direct and insignificant relationship between growth rate of GDP and agricultural productivity. The study therefore recommended subsidizing agricultural inputs and setting in place incentives that will keep people in the agricultural sector.

Keywords: Agricultural Productivity, Exchange Rate, Lending Rate, Oil abundance

Effect of Banking Sector Reforms on the Growth of Manufacturing Sector in Developing Economies: A Study of Nigeria 1986-2018 (Published)

The study examined the effect of banking sector reforms on the growth of manufacturing sector in developing economies: a study of Nigeria. The specific objectives of this study is to investigate the relationship between aggregate credit to the manufacturing sectors (ACM), commercial banks’ reserve requirement (CBR), commercial banks’ investment (CBI), loan-to-deposits ratio (LDR), lending rate (LR), real effective exchange rate index (EXR) and  manufacturing sector output growth (MGDP), anchored on financial liberalization theory and keynesian theory of finance and economic growth. The study used secondary data obtained from the publications of NBS and CBN and subjected them to Co-integrating and Serial Correlation CM Test to ascertain the long run and short run relationship between ACM, CBR, CBI, LDR, LR and MGDP at 5% level of significance. The findings shows that banking sector reforms did not have significant effect on growth of the manufacturing sectors for the period 1986 to 2018 in Nigeria. We recommend that a more structured reform programme with identifiable and specific objectives that prioritizes credit to the manufacturing sector should be promoted.

Keywords: Banking reforms, Lending Rate, Manufacturing sector, aggregate credit

Real Interest Rate and Savings Mobilization in Nigeria (Published)

This study empirically assessed the impact of real interest rate on savings mobilization in Nigeria. The Vector- Auto Regression (VAR) was employed, using the time series data from 1980 to 2008. The study revealed that real interest rate has negatively impacted on the level of savings mobilization in Nigeria. The need for government in Nigeria to bridge the existing gap between the lending and savings rates and increase per capita income level of the populace, to stimulate savings for investment and economic growth were revealed by the study. Therefore, efforts should be geared towards reducing domestic inflation rate to arrest its negative impact on real rates in Nigeria.

Keywords: Inflation Rate, Lending Rate, Real Interest Rate, Savings Mobilization And Nigeria, Vector Auto Regression

Effect of Bank Lending Rate on the Performance of Nigerian Deposit Money Banks (Published)

This study examined the impact of bank lending rate on the performance of Nigerian Deposit Money Banks between 2000 and 2010. It specifically determined the effects of lending rate and monetary policy rate on the performance of Nigerian Deposit Money Banks and analyzed how bank lending rate policy affects the performance of Nigerian deposit money banks. The study utilized secondary data econometrics in a regression, where time-series and quantitative design were combined and estimated. The result confirmed that the lending rate and monetary policy rate has significant and positive effects on the performance of Nigerian deposit money banks. The implication of these is that lending rate and monetary policy rate are true parameter of measuring bank performance. We therefore recommend that government should adopt policies that will help Nigerian deposit money banks to improve on their performance and there is need to strengthen bank lending rate policy through effective and efficient regulation and supervisory framework.

Keywords: Bank, Bank Performance, Co-integration, Financial System, Lending Rate