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

This study examined the impact of bank credits on the performance of Agricultural and Manufacturing sectors 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 Agricultural and Manufacturing sectors output respectively. Given the error correction mechanism results, the study showed that bank credits exhibited negative significant impact on the performance of both agricultural and manufacturing sectors in Nigeria. Based on these findings, the study recommends among others: Bank Credits to the Agricultural and Manufacturing Sectors should be properly monitored to ensure that funds are not diverted for other purposes, Recipients of these Bank Credits to the Agricultural and Manufacturing Sectors should be made to undergo entrepreneurial training and as well on how to pay back as at when due, so as to reduce the risks associated in giving out these Credits to the Agricultural and Manufacturing Sectors.