EFFECT OF NON-OIL SECTOR FINANCING ON ECONOMIC GROWTH IN NIGERIA 2008-2022

Abstract

The study examined the effect of non-oil sector financing on economic growth in Nigeria between
2008 and 2022. Non-oil export financing to manufacturing and agricultural sectors were used
and economic growth was proxy by GDP. With Ex post facto research design, the study utilized
secondary data econometrics in a regression. Quarterly data for the study were obtained from
the Central Bank of Nigeria statistical bulletin. The collected data were analysed using the unit root
test, cointegration, vector error correction model and walt test. The result of cointegration
showed a-long run relationship among the variables and the Walt test also showed that
Agriculture sector financing has significant effect on economic growth in Nigeria, while
manufacturing sector financing also had a significant effect on economic growth in Nigeria. It
It was recommended that the Central Bank of Nigeria should encourage local farmers by directing
the supply of bank lending at lower lending rate to rural areas. Also, government and
manufacturers should work together to jump- start manufacturing output in order to generate a
corresponding increase in economic growth. This can be achieved through the provision of
conducive macro-economic environment and appropriate investment incentives.