COMMERCIAL BANK CREDIT AND UNEMPLOYMENT RATE IN NIGERIA
Nwosa Philip I., Ajoje Olufunke I. and Raji Oluwapelumi T.
Volume 3 Issue 2
Abstract
Several financial sector reforms have been implemented by the Nigeria government to spur the growth of commercial banks, which in turn is expected to contribute to the reduction in the alarming unemployment rate in Nigeria. Despite the increase in commercial bank credit over the years, unemployment rate has continued to be a menace in the society with its adverse economic and social consequences. Therefore, this study examined the impact of commercial bank credit on unemployment in Nigeria. The study spanned the period 1981 to 2021. The study utilized the autoregressive distributive lag (ARDL) method and the results revealed that commercial bank credit has positive and significant influence on unemployment rate in Nigeria. Thus, the study recommends that credit by commercial bank alone is not sufficient to reduce unemployment; other measures to reduce unemployment should be put in place. More so, measures should be taken to ensure that credits by commercial bank are efficiently and effectively utilized. Keywords: Commercial Bank Credit, unemployment rate, ARDL, financial development, Nigeria.
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