Economic and Financial Review


Central Bank of Nigeria, Research Department.


Deposit money banks, Intermediation, Lending rate, Manufacturing capacity utilisation, Manufacturing sector, Vector Error Correction Model (VECM), Co-integration, Nigeria


The study investigates the impact of lending rate on output of the manufacturing subsector using the vector error correction model and annual data from 1981 - 2014. The empirical results indicated that high lending rate had negative impact on manufacturing output in the long-run. The study, therefore recommends the implementation of investment friendly policies that narrows, the lending rate by the deposit money banks in order to stimulate output growth in the manufacturing sub-sector and allow global competitiveness of products.





Recommended Citation

Akpan, D. B., Yilkudi, D. J. and Opiah, D. C. (2016). The impact of lending rate on the manufacturing sector in Nigeria. CBN Economic and Financial Review, 54(1), 43-69.



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