ABSTRACT

This study examine the effect of commercial bank credit on manufacturing sector output in Nigeria from 1990-2016 with the object of finding out the impact of bank loan on the manufacturing sector of the Nigerian economy within the period considered. To identify the stationarity of the data employed in the empirical investigation, various econometric techniques like Augumented Dicky Fuller unit root test, Johansen cointegration test and error correction mechanism were employed. The result of the error correction model shows that the independent variables are all significant to impact on the manufacturing sector output in Nigeria. The study conclude that commercial bank loan have a strong impact on the manufacturing sector in Nigeria for the year under the view. The study recommended that the financial institutions should have confidence in the manufacturing industry; invest more in this sector so that they can have enough availability of funds to invest in modern technologies and computer-integrated manufacturing system.