The Performance and Future of Mandatory Allocation of Credit to Selected Sectors in the Nigerian Economy

Authors

J. A. Babalola, Central Bank of Nigeria
F. O. Odoko, Central Bank of Nigeria

Publisher

Central Bank of Nigeria

Keywords

Mandatory Allocation, Nigerian Economy, Nigeria, Economy

Abstract

The paper examines the performance and likely future trend of mandatory credit allocation to selected sectors of the Nigerian economy. The result reveals that during both the pre-SAP and the SAP years, performance was below target. In terms of future mandatory a/location of credit by banks, the paper notes that instead of 'prescribing the total amount by which banks can expand credit, discretion should he given to banks to allow market forces to determine the allocation.

Author Bio

The authors are Assistant and Acting Assistant Directors of Research, Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review

Issue

3

Volume

34

Recommended Citation

Babalola, J. A. & Odoko, F. O. (1996). The Performance and Future of Mandatory Allocation of Credit to Selected Sectors in the Nigerian Economy. CBN Economic and Financial Review. 34(3), 675-712.