Open AccessTHE ROLE OF BANK CREDITS ON POVERTY REDUCTION IN NIGERIA
Author(s) -
Augustine Okon Jacob,
Okon Joseph Umoh,
Jackson Ibanga Ibanga
Publication year - 2020
Publication title -
social values and society
Language(s) - English
Resource type - Journals
ISSN - 2682-7964
DOI - 10.26480/svs.01.2021.29.33
Subject(s) - poverty , loan , poverty reduction , granger causality , government (linguistics) , agriculture , economics , causality (physics) , development economics , business , economic growth , finance , geography , linguistics , philosophy , physics , archaeology , quantum mechanics , econometrics
This study examines the role of bank credits on poverty reduction in Nigeria. Despite different measures by the government in channelling bank credits to the private sector. Poverty is still one of the greatest challenges facing Nigeria today. The study adopts econometrics quantitative methods in analysing annual time series data to achieve the objectives of the study. From the results, the granger causality test shows that there is no causal relationship between bank credit and poverty level in Nigeria. There is a unidirectional causal relationship between agricultural loan and poverty flowing from poverty. The OLS result indicate that there is a significant positive impact of bank credit on poverty reduction and there is a significant negative impact of agricultural loan on poverty level in Nigeria. This study recommends that federal government should ensure agriculture loan is redirected to the proper farmers in the country to reduce poverty in the country.