By Isiocha, Grace Iheoma
This project, “The Impact of Banking Industry on the Real Sectors of the Nigerian Economy”, was carried out to determine the impact of Bank Loans on the Growth of the Nigerian Agricultural Sector and as well as the Nigerian Manufacturing Sector. Data used were secondary in nature and comprised Loans from the Banking Industry to the Agricultural and Manufacturing Sectors and their corresponding Gross Domestic Product (GDP) components, from 1988-2008. The Ex- post facto and Descriptive/ Comparative research designs were employed. The Simple Linear Regression Statistical Analysis Technique was adopted to analyse the data. Major findings of the study include that Bank Loans have a positive and significant impact on the growth of the Nigerian Agricultural Sector and equally have a positive and significant impact on the growth of the Nigerian Manufacturing Sector. Among the recommendations of the study include that the Banking industry financing, which is a good source of financing for the Real Sector of the Nigerian Economy, should be encouraged because it stimulates economic growth and development. Also, Banks should therefore be encouraged through policy inducement by the Central Bank of Nigeria, to set aside large loanable funds to be lent to agriculture and manufacturing sectors as these will stimulate overall growth of the Nigerian economy.