Date of Conferral

1-1-2021

Degree

Ph.D.

School

Public Policy and Administration

Advisor

Richard Worch

Abstract

The dearth of financial resources for the private sector remains a major constraint to economic growth and development in Nigeria. Amongst other causal factors, the inability of Other Depository Corporations (ODCs) to effectively mobilize financial resources to the productive sectors has been recognized. The gap in literature relates to the fact that previous studies used aggregated loan data, thus, failing to capture sector-specific idiosyncrasies. This study involved evaluating whether monetary policy (MP) has impacted credit creation for economy sectors. The policy feedback, institutional, and financial theories were used to study how MP actions affected deposit taking institutions’ financial intermediation roles. Sectoral credit behavior and MP shocks association were addressed, as well as the effect of banking licensing regulations on credit in the private sector. Longitudinal time series data were analyzed via multiple vector auto regression models for economic sectors and survey data with crosstab and correlation analyses. Results showed that contractionary shocks reduced the availability of credit for businesses. The shock caused declines in credit for agriculture, mining, and quarrying, as well as increases to communication and education. However, the manufacturing sector witnessed insignificant impacts, thus the need to intensify credit intermediations towards the manufacturing sector. More effective MP for promoting access to business credit would restore financial funds access to progress residents’ wellbeing and stimulate economic growth. The anticipated effective MP design will in turn improve households and firms’ productivity, as well as profit and individual welfare to effect general wellbeing positive social change in Nigeria.

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