ABSTRACT

This study examined the impact of credit to private sector (CPS) on the real sector of Nigeria with a view to assess the significant contribution of CPS to real sector growth in Nigeria. The study used aggregate time series date from 1981 to 2015, which was drawn from Central Bank of Nigeria (CBN) statistical bulletin and CBN annual report and statement of accounts. The data was analyzed using multiple regression and based on the coefficient of determination (R square), the study reveals 55.03% variation between the CPS and real sector growth in Nigeria. The study concludes that there is a statistically significant impact of credit to private sector of Nigeria. This, suggest that the performance of the real sector is greatly influenced by credit to private sector. The study recommends that the Federal Government of Nigeria through the central bank of Nigeria (CBN) should enhance the financing of the real sector as well as improve credit flow to the sector because of its strategic importance in creating and generating growth of the economy.