Appraising the Credit Policy in the Private Sector Investment in the Nigerian Economy
Journal Title: International Journal of Empirical Finance - Year 2015, Vol 4, Issue 7
Abstract
The objectives of this study is appraising of credit policy in the private sector investment in Nigeria economic growth. Findings reveal the significant and positive impacts of domestic credit to private sector property right and investment freedom on private sector performance in the country. The study recommends that the government of Nigeria should provide a favourable business environment for the private sector to thrive. The paper investigates the relationship between financial sector development and economic growth in Nigeria for a period of 1990-2011. Function monetary policy measures were used to empirically determine the long run relationship of private investment and economic growth in Nigeria. This implies that the monetary policy in Nigeria has positively affected the growth of the private investment in the Nigeria economy. The paper also examined the impact of government expenditure on private sector investment and also how the financing of budget deficit have not only affected the performance of private investment but also how it crowds out private investment in Nigeria. Secondary data information from CBN bulletin were used. The paper recommends that government should direct its fiscal policy that would favour the private sector investment by discouraging high government expenditure and maintain low fiscal deficit. Also to avoid crowding out effects, and also recommended that deficit be financed through the capital market.
Authors and Affiliations
Anochie Uzoma C. , Ude Damian Kalu, Anuforo Robert
Keywords
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