International Journal of Economics and Financial Research
Online ISSN: 2411-9407
Print ISSN: 2413-8533
Print ISSN: 2413-8533
Volume 2 Number 4 April 2016
Bank Credits to Agricultural and Manufacturing sectors and Economic Growth in Nigeria, 1970 ? 2013
Authors: Ipalibo Watson Sogules ; Emeka Nkoro
This study examined the impact of Bank credits to agricultural and manufacturing sectors on economic growth in Nigeria using annual time series data from 1970-2013. Using co-integration and error correction mechanism for the analysis, the study revealed that a long run relationship exists between Bank credits to agricultural and manufacturing sectors and economic growth. Given the error correction mechanism results, the study showed that Bank credits to agricultural sector exhibited an insignificant negative impact on economic growth while Bank credits to manufacturing sector exhibited a negative significant impact on economic growth in Nigeria. Based on these findings, the study recommends among others: Bank Credits to the Agricultural and Manufacturing Sectors should be properly monitored to ensure that funds meant for agricultural and manufacturing activities are not diverted for other purposes, Intending recipients of these Bank credits to the agricultural and manufacturing sectors should be made to undergo entrepreneurial training and how to pay back as at when due, so as to reduce the risks associated in giving out these Credits to the Agricultural and Manufacturing Sectors entrepreneurs.
Loans Default and Return on Assets (Roa) In the Nigerian Banking System
Authors: Olawunmi Omitogun ; Deji Olanrewaju ; Yimka S. A. Alalade
This study investigated loans default (problems loans) and returns on assets in Nigeria banks, employing the data of five banks for a period of five years (2010-2014), using the ordinary least squares (OLS) regression techniques to check the relationship between problem loans and returns on assets (ROA). The findings shows that a positive and significant relationship at 5% level of significance exist between problem loans and returns on assets, and a negative and significant relationship at 10% level of significance exists between loans and advances and returns on assets in Nigerian banks. A major suggestion is that banks in Nigeria should enhance their capacity in credit analysis and loan administration, while the regulatory authority should pay more attention to banksâ€™ compliance to relevant provisions of Bank and other Financial Institutions Act (1991) and prudential guidelines.