TABLE OF CONTENTS

Title                                                                                                                            Page

Title Page        -           -           -           -           -           -           -           -           -           i

Declaration     -           -           -           -           -           -           -           -           -           ii

Certification    -           -           -           -           -           -           -           -           -           iii

Dedication -                -           -           -           -           -           -           -           -           iv

Acknowledgement -    -           -           -           -           -           -           -           -           v

Table of Contents -     -           -           -           -           -           -           -           -           vii

List of Tables  -           -           -           -           -           -           -           -           -           x

Abstract -        -           -           -           -           -           -           -           -           -           xi

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study -            -           -           -           -           -           -           1

1.2 Statement of the Problem -           -           -           -           -           -           -           4

1.3 Objectives of the Study -              -           -           -           -           -           -           8

1.4 Research Questions          -           -           -           -           -           -           -           9

1.5 Research Hypotheses        -           -           -           -           -           -           -           10

1.6 Scope of the Study           -           -           -           -           -           -           -           10

1.7 Limitations of the Study- -           -           -           -           -           -           -           11

1.6 Significance of the Study -           -           -           -           -           -           -           11

1.9 Organization of study       -           -           -           -           -           -           -           12

1.10 Definition of terms -                   -           -           -           -           -           -           13

CHAPTER TWO: REVIEW OF RELEVANT LITERATURE

2.1       Conceptual Framework           -           -           -           -           -           -           15

2.1.1    Conceptual Overview of Deposit Money Banks        -           -           -           15

2.1.2    Developments in the Banking Sector             -           -           -           -           16

2.1.3    Deposit Money Banks’ Lending         -           -           -           -           -           21

2.2       The Private Sector      -           -           -           -           -           -           -           22

2.2.1    Types of Private Sector Businesses    -           -           -           -           -           23

2.2.2    Private and Public Sector Differences-          -           -           -           -           24

2.2.3    Positioning the Nigeria’s private sector for economic growth           -           25

2.2.4    Impact of Deposit Money Banks’ Lending on the Growth of

the Nigerian Private Sector.    -           -           -           -           -           -           28

2.3       Theoretical Framework           -           -           -           -           -           -           29

2.3.1    Financial Intermediation Theory        -           -           -           -           -           29

2.3.2    Multiple-Lending Theory       -           -           -           -           -           -           31

2.3.3    Supply Leading Theory          -           -           -           -           -           -           32

2.3.4    Keynesian Theory of Consumption, Savings, Investment, and

Interest Rate    -           -           -           -           -           -           -           -           33

2.4       Empirical Review       -           -           -           -           -           -           -           35

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction-         -           -           -           -           -           -           -           -           42

3.2 Research Design   -           -           -           -           -           -           -           -           42

3.3 Types and Sources of Data -         -           -           -           -           -           -           43

3.4 Area of Study       -           -           -           -           -           -           -           -           43

3.5 Population of the study     -           -           -           -           -           -           -           43

3.6 Method of Data Analysis -           -           -           -           -           -           43

3.7 Model Specification          -           -           -           -           -           -           -           44

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction-         -           -           -           -           -           -           -           -           46

4.2 Presentation of data-         -           -           -           -           -           -           `-          47

4.3 Relationship Analysis       -           -           -           -           -           -           -           48

4.3.1 Testing of Hypothesis One        -           -           -           -           -           -           49

4.3.2 Testing of Hypothesis Two       -           -           -           -           -           -           54

4.3.3 Discussion of Findings- -           -           -           -           -           -           59

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary - -           -           -           -           -           -           -           -           61

5.2 Conclusion            -           -           -           -           -           -           -           -           63

5.3 Recommendations -           -           -           -           -           -           -           64

References      -           -           -           -           -           -           -           -           -           66

LIST OF TABLES

Table 4.1: Variables of study -           -           -           -           -           -           -           47

Table 4.2: Relationship between bank loans and

domestic private Investments. -           -           -           -           -           -           50

Table 4.3: Regression Result Showing relationship between

bank loans and manufacturing output growth -           -           -           -           55

ABSTRACT

This study is aimed at examining the effect of deposit money bank lending on the growth of private sector in Nigeria between 1995 and 2015. This study adopted the expost facto research design, in order to achieve the objectives stated in the study. Data used in the study was obtained through secondary sources from CBN statistical bulletin and, internet browsing, etc. The ordinary least square multiple regression technique was used to test the hypotheses stated in the study. From the findings, it was discovered that deposit money bank lending has a significant relationship with domestic private investments and manufacturing output as indicators of private sector growth. It was also realized that bank loans was statistically related with domestic private investments, while money supply indicated a statistically significant relationship with Manufacturing Output. It was concluded that deposit money bank lending has a significant positive effect on the growth of the private sector in Nigeria. Therefore, it was recommended that greater efforts should be structured toward increased short, medium and long term loans to private sector investors, as well as the manufacturing sector, agricultural sector and SMEs, as they constitute an integral part of the growth and transformation process of an economy like that of Nigeria.