IMPACT OF BANK CREDIT ON EMPLOYMENT GENERATION IN NIGERIA

Abstract

The study examines the connection between bank loans and the creation of jobs in Nigeria using secondary data from the National Bureau of Statistics and the Central Bank of Nigeria. Since the data spans the years 2000–2020, it is possible to do a thorough examination of the national employment and bank credit trends and patterns. The findings of this study shows that bank credit and job creation in Nigeria are positively correlated. More specifically, higher employment levels across the board in the economy are linked to more bank loans to the private sector. The results have important ramifications for Nigerian enterprises, financial institutions, and policymakers. The report emphasizes how crucial it is to support small and medium-sized businesses' access to finance, as they are major forces behind the nation's job growth. It also emphasizes the requirement for a favorable regulatory framework that facilitates lending operations and promotes investment in profitable economic sectors.
The study adds to the body of knowledge already available on the function of bank lending in encouraging the creation of jobs in emerging nations like Nigeria. For stakeholders and politicians looking to tackle the issues of joblessness and economic expansion in the nation, the study gives insightful data demonstrating the beneficial effects of bank lending on employment levels.