Faith Erowho ESHANOKPE

The study empirically examined the relationship between bank lending and the growth of the Nigerian economy for the period 1992 to 2021. The ordinary least squares (OLS) estimation technique was employed in the empirical analysis of data. The result from the analysis revealed that, credit to private sector (CPRIV) has significant positive relationship with economic growth in Nigeria; credit to public sector (CPUB) has an insignificant negative relationship with economic growth; while inflation rate (INFL) has a weak negative effect on economic growth, and this suggests that it does not play any significant role in the growth and development of the Nigerian economy. Those of exchange rate (EXCR) has significant positive effect on the growth and development of the Nigerian economy. The study recommends that, credit to private sector should be given more priority if the economy would grow as expected because, through the private sector the real sector of the economy which is central to the economy are directly affected. Failure to do this will only spell doom to the Nigerian economy. Also, there is need to review lending policy on a continuous basis with respect to interest rate with a view to ensuring that the level and structure of interest rates are adequate and consistent with policy objectives of making lending more accessible to private and public sectors of the economy.