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Bank's Credit on Unemployment Rate in Nigeria

Kamal Adekunle, Adewunmi, Volume 3 Issue 2, December 2022 Pages 218-224, Published: 2022-12-28


This study looked at the effect of bank credit on the unemployment rate in Nigeria from 1990 to 2020. The study included multiple linear regression model variables such as bank loan and advances, broad money supply, credit to the private sector, interest rate, and unemployment rate. To conduct an empirical inquiry utilizing the provided model, the Ordinary Least Squares (OLS) estimation method was used. Data employed was gathered from Central Bank of Nigeria's (CBN) 2020 Statistical Bulletin. To assess the influence of the independent and dependent variables, unit root test, OLS regression, and co-integration were performed. The investigation indicated that there is no significant relationship between loan and advances and unemployment rate in Nigeria. Furthermore, the research demonstrated that the broad money supply had a considerable influence on Nigeria's unemployment rate. Similarly, it indicates credit to the private sector had a considerable impact on Nigeria's unemployment rate. Finally, the study reveals that interest rates show a significant impact on Nigeria's unemployment rate. As a result, it was established that bank credit had an influence on Nigeria's unemployment rate. It was suggested that the monetary authorities enhance and develop financial services, notably deposit money institutions, in order to give vital credit facilities to the country's teeming unemployed youths