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This paper employed an econometric approach to examine the influence of bank credit on industrial sector performance of the Nigerian economy for the period 1981 to 2018. Data were obtained from the Central Bank of Nigeria statistical bulletin, and were subjected to diagnostic test before being used. The Phillip-Peron unit root test revealed that the variables were in mixed order of I(0) and I(1) thus necessitating the use of the ARDL technique of estimation. In testing for the existence of long-run relationship, the ARDL Bounds test was used in the analysis. The result of the Bounds test indicated the presence of long-run relationship between industrial sector performance and the explanatory variables in the model. The result from the ARDL short-run-dynamics and long-run form indicated that bank credit exerted a positive and significant influence on industrial sector performance both in the short-run and in the long-run. Lending rate was also seen to exert a negative, though insignificant, impact on the industrial sector performance. The coefficient of the ECM (-0.6434) indicated that 64.34% of the short-run disequilibrium is corrected annually. In line with these findings, the paper recommended that there is need for a downward revision of the lending rate to encourage borrowing by investors in the industrial sector and that effective credit rationing should be initiated in favour of the industrial sector.


Bank credit Industrial performance Finance-led growth ARDL Nigeria

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How to Cite
Effiong, U. E., & Ekong, C. N. (2022). Bank Credit and Industrial Sector Growth in Nigeria: An Empirical Analysis. International Journal on Economics, Finance and Sustainable Development, 4(5), 12-33. Retrieved from


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