Bank Credits and Performance of Manufacturing Sector in Nigeria, 1970-2013

This study examined the impact of bank credits on performance of manufacturing sector using annual time series data from 1970-2013. Using co-integration and error correction mechanism for the analysis the study revealed that a long run relationship exists between bank credits and manufacturing sector output. Given the error correction mechanism result, the study revealed that bank credits exhibited negative significant impact on the performance of manufacturing sector in Nigeria. Based on these findings, the study recommends among others: Bank Credits to the Manufacturing Sector should be properly monitored to ensure that funds are not diverted for other purposes, intending recipients of these Bank Credits to the Manufacturing Sector should be made to undergo entrepreneurial training and how to pay back as at when due, so as to reduce the risks associated in giving out these Credits to the Manufacturing Sector and also its adverse effect on manufacturing productivity when misappropriated.