ABSTRACT

This study examines the impact of bank credit on the Nigerian economy, focusing on two major banks: First Bank of Nigeria PLC and Zenith Bank PLC, Ekwulobia. The research aims to assess the extent to which bank credit has influenced economic growth and development, analyze the level of awareness regarding available credit facilities, evaluate the response of businesses in various sectors to bank credit, and review the effects of the Central Bank of Nigeria’s (CBN) monetary policies on credit allocation. Using a combination of questionnaires and personal interviews as primary data collection methods, the study uncovers that bank credit plays a significant role in enhancing economic activities, particularly in sectors such as agriculture, industry, and manufacturing. Key findings reveal that while credit facilities are vital for business expansion and economic development, there exists a gap in the awareness of these facilities among businesses. Additionally, the research identifies the restrictive effects of the CBN’s monetary policies on the banks’ lending capacities. The study concludes that bank credit is crucial for stimulating economic growth, especially through long-term financing options that support capital formation. It is recommended that the government and the CBN work together to create policies that encourage the expansion of credit facilities and provide businesses with greater access to financing, thereby fostering sustainable economic development.

Keywords: bank credit, Nigerian economy, economic development, credit facilities, monetary policy, business growth.

TABLE OF CONTENTS

Title page

Dedication

Approval page

Acknowledgment 

Abstract  

Table of content

CHAPTER ONE

1.0 Introduction  

1.1 Background of the study  

1.2 Statement of the problem  

1.3 Objective of the study

1.4 Research Question

1.5 Significance of the study

1.6 Scope of the study

1.7 Definition of terms

CHAPTER TWO

2.0 Review of related literature  

2.1 A brief introduction

2.2 Model and theories relevant to the research question

2.3 Banks in Nigeria

2.4 Central bank as the controller of credit in Nigeria

2.5 Roles of monetary policy in Nigeria  

2.6 summary of literature review

CHAPTER THREE

3.0 Research Methodology

3.1The research Design  

3.2 Area of the study

3.3 population of the study

3.4 Sample of the study  

3.5 Instrument for data collection

3.6 Validation reliability of instrument

3.7 Distribution and retrieval

3.8 Method of data analysis

CHAPTER FOUR

4.0 Data presentation and analysis

4.1 Brief Introduction  

4.2 Data presentation

4.3 Discussion of the findings

CHAPTER FIVE

5.0 Summary, conclusion and recommendation

5.1 Summary of findings

5.2 Conclusion  

5.3 Recommendation

5.4 Limitation of the study

5.5 Suggestion for further research

References

Appendices

Questionnaire