Interest rate management as the key factor to industrial growth in Nigeria 2000-2021

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Abstract

The study evaluates Interest rate management as the key factor to industrial growth in Nigeria 2000-2021. The objectives of the study are to assess the relationship between interest rate and manufacturing sector performance in Nigeria. Secondary data was used for the study covering a period of 25 years. The data is sourced from Central Bank of Nigeria and National Bureau of Statistics publications. The data were
analyzed using Ordinary Least Square (OLS) multiple regression model. It was found that the major factors that influence the level of manufacturing sector performance are electricity supply, inflation and lending interest rate. Other factor includes, inadequate tax relief, enabling environment, political will, obsolete technology, preference for foreign goods, among others. It is recommended that; government should provide the essential infrastructural facilities like electricity supply, there should be consistency in
policies that will bring about sustainable growth in manufacturing sector, and also, the Central Bank of Nigeria (CBN) will need to step up their responsibility to ensure that funds are made available and at a low cost to manufacturing sector.

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