Original Research Article | OPEN ACCESS

Financing of Manufacturing Exports and Performance of Deposit Money Banks in Nigeria

For correspondence:-    

Received: April 9, 2020        Accepted: June 19, 2020        Published: 26 June 2020

Citation: Financing of Manufacturing Exports and Performance of Deposit Money Banks in Nigeria. Account Tax Rev 2005; 4(2):75-84 doi:

© 2005 The authors.
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Abstract

The aim of this study was to examine the manufacturing exports sector financing and the performance of deposit money banks in Nigeria. The diversification policy of the Federal Government of Nigeria stated the components of non-oil exports as Agriculture, Manufacturing, Solid Minerals and Services, all key productive sectors.  To facilitate this study, we used Total Bank Assets, Total Bank Liabilities and Total Bank Liquidity as proxies for the performance of Deposit Money Banks in Nigeria. The study adopted an ex-post causal research design using data for the period 1981-2017; 37 observations. The time series secondary data deployed were sourced from the Central Bank of Nigeria Statistical bulletins. The Auto-Regressive Distributed Lag (ARDL) statistical tool was utilised in the estimation of the data, and the findings revealed that credit to Manufacturing sector significantly impacted on bank liability levels and bank liquidity in the long run but did not impact significantly on bank assets in the long run.  The study recommends that the government should provide an effective and safe enabling environment that can ensure that banks’ lending to manufacturing exports sector comes at minimal risks. The study has contributed to the existing knowledge as it developed an econometric model that indicates that the manufacturing exports financing can improve the fortunes of deposit money banks in Nigeria

Keywords: Manufacturing exports, total bank assets, total bank liabilities, total bank liquidity, and autoregressive distributed lag