Deposit Money Bank’s Credit and Manufacturing Sector Output in Nigeria

This study investigates the relationship between deposit money bank’s credit and manufacturing sector output in Nigeria from 1980-2024. Manufacturing sector output is used as the independent variable in the model for the study. The dependent includes exchange rate, deposit money banks’ credits to manufacturing sector, lending rate, liquidity ratio, interest rate spread and inflation rate. The techniques applied are the dynamic ordinary least square of multiple regression analysis, unit root test, co-integration tests and error correction techniques. The result of the study indicated that exchange rate and interest had negative relationship with manufacturing sector output while others had positive link with manufacturing sector output. The result of the R² is 75% indicating that the speed of adjustment from the dependent variable to the independent variables is 75 per cent. The study concludes that deposit money banks credit can enhance the entire economy in Nigeria. The study recommends a favourable increase in the entire economy through the manufacturing sector output.