DEPOSIT MONEY BANKS ACTIVITIES AND INDUSTRIAL DEVELOPMENT IN NIGERIA

The study examines the impact of deposit money banks activities on industrial development in Nigeria. The study was embarked upon given the vital role played by the deposit money banks in the growth and development process of developing countries, like Nigeria were the banking sector is the main pillar of financial system. In specific terms, it examines the impact of: credit to the private sector (CRP), interest on loans and advances (ILA), bank lending rate (BL) and inflation rate (INF) on industrial development (INDO). The regressant, industrial development which is proxy by industrial output (INDO), was regressed on the regressors – credit to the private sector (CRP), interest on loans and advances (ILA), bank lending rate (BL) and inflation rate (INF). Using EViews 9.0 econometric package, the ordinary least squares (OLS) regression equation for a time series data of 41-years range, 1981 to 2021. Overall, the study's findings appear to provide evidence that credit to private sector is a critical factor influencing industrial sector development in Nigeria, whereas interest on loans and advances, bank lending rate and inflation rate were found not to be critical factors influencing the development of Nigeria's industrial sector. Based on the findings, the study recommends that the managers of industries should continue to take advantage of bank loans and other debt instruments in order to boost their performance significantly. In addition, industrialists should depend more on local sources of raw materials in order to reduce their foreign exchange cost. Also, inflation rate targeting policy to ensure that the level of inflation remains within acceptable and productive level should be sustained