Bank Credit Finance and Macro Economic Determinants of Industrial Output in Nigeria 1980-2010
Bassey, Nsikan Edet; Asinya, Francis Anoka; Amba, Esu-Amba Antakikam

Abstract
The study analyzed the effect of bank credit finance and other macroeconomic policy variables on industrial output in Nigeria. Time series data which covered the period 1980-2010 were obtained from Central Bank of Nigeria (CBN) and used for the study. Data were analyzed using Ordinary Least Square (OLS) regression technique. To ascertain the stationarity of variables, Augmented Dickey-Fuller (ADF) unit root test was carried out on the variables. Empirical results revealed that install capacity utilization rate, previous industrial output, inflation rate and political instability significantly influenced industrial output in Nigeria. Bank credit finance and government expenditure on industrial sector failed to explain the variation in industrial output, implying that the industrial sector has been poorly funded and that access to bank credit finance has been limited. Hence, to boost industrial output, there is need to pursue policies that would enhance the capacity utilization rate of industries, promote political stability, ensure proper funding of the sector by government as well as ensuring the provision of bank credit finance at affordable interest rate and less stringent conditions.

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