IMPACT OF COMMERCIAL BANKS LOANS ON ECONOMIC GROWTH OF SMALL SCALE ENTERPRISES IN NIGERIA

Abstract

This study was designed to establish the Impact of Commercial Banks  loans on Economic Growth of Small Scale Enterprise in Nigeria. Secondary data were employed. Data for the study were drawn from the Central Bank of Nigeria Statistical Bulletin (2022). Ordinary least squares method of multiple regressions was applied. Commercial Banks Loans to Small Scale Enterprises and Commercial Banks Total Credits to Private Sectors were considered as independent variables while Economic Growth was represented with Gross Domestic Product, as dependent variable. The study found that Commercial Banks Loans to Small Scale Enterprises and Commercial Banks Total Credits to Private Sectors have influences on economic growth in Nigeria. Both Commercial Banks Loans to Small Scale Enterprises and Commercial Banks Total Credits to Private Sectors have significant and positive effect on economic growth. The research has recommended that there is more need for Commercial Banks to increase her loans to small scale enterprises and Private Sectors economic growth in Nigeria to stimulate economic growth of small scale enterprises and Nigerian economy.