Impact of Monetary Policy on Small Scale Enterprises Financing in Nigeria

Ebire, Kolawole

doi:10.46281/ijsmes.v1i2.66

Cited by 2 publications

(2 citation statements)

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“…The study also supported the findings of Akinyemi and Adejumo (2015), Biljana and Tamara (2013), Kolawole and Lucky (2018) in the short run as they found a positive effect of monetary policy on SME's performance. It was also to support Mordi et al , (2014) as they found that consolidation exercise of banks affected the growth of credit to SMEs negatively as the value of credit delivered after consolidation decreased by 60.48 percent from N62 billion to N24.5 billion during the period under review.…”

Section: Summary Of Findingssupporting

confidence: 88%

“…Further findings also revealed that the impact of government policies on entrepreneurship phases differ in both countries. Kolawole and Lucky (2018) carried out a study on the impact of monetary policy on SMEs small and medium scale enterprises in Nigeria spanning from the first quarter of 1992 to the last quarter of 2016. Commercial banks loans to SMEs was the dependent variable while money supply, interest rate, inflation and exchange rate were used as proxy for monetary policy.…”

Section: Empirical Reviewmentioning

confidence: 99%

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Influence of Monetary Policy on The Credit Supply To Small and Medium Scale Enterprises In Nigeria (1993 -2018)

Awoniyi¹,

Ogundipe²

2021

Preprint

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The study examined the effect of monetary policy on credit supply to small and medium scale enterprises (SMEs) in Nigeria covering a temporal scope 1993 to 2018. It was modelled by using ratio of credit to SMEs to total credit (CSTC) as dependent variable while monetary policy rate (MPR), liquidity ratio (LQR), lending rate (LDR) and inflation (INF) were the explanatory variables. Secondary data were sourced from CBN Statistical Bulletin and the estimation was done using Auto regressive distributed lag (ARDL). The study found that monetary policy has negative and insignificant effects on credit supply to SMEs in the long run while in the short run, monetary policy has though insignificant positive but indirectly a significant positive effect through lending rate on credit available to SMEs. The implication is that, as MPR changes its effects are transmitted through lending rates of commercial banks to SMEs. Hence, the study concluded that monetary policy significantly and heterogeneously impacts on the credit supply to SMEs indirectly through lending rate in Nigeria. It was recommended among others that as the Central Bank of Nigeria continues to implement monetary policy in Nigeria, caution should be taken so that such decisions won’t be detrimental to businesses such as SMEs. In addition, MPR should be further reviewed downward in order to encourage SMEs from assessing more funds in Nigeria. Likewise, a pool of long-term funds should be created By Central Bank of Nigeria to bridge the financing gap of SMEs in Nigeria.

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Section: Summary Of Findingssupporting

confidence: 88%

Section: Empirical Reviewmentioning

confidence: 99%

Influence of Monetary Policy on The Credit Supply To Small and Medium Scale Enterprises In Nigeria (1993 -2018)

Awoniyi¹,

Ogundipe²

2021

Preprint

View full text Add to dashboard Cite

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An Estimation of Causal Interaction Between Monetary and Fiscal Stabilization Policies on Economic Growth in Nigeria

Etukafia,

Enang,

Etim

et al. 2024

AKSUJACOG

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This study was structured to examine the causal relationship between monetary and fiscal stabilization policies on economic growth in Nigeria. Data employed for econometric analysis were obtained from the Central Bank of Nigeria statistical bulletin published in 2022. The analytical methodology adopted was the Granger Causal technique. Augmented Dickey-Fuller test was employed to examine the stationary properties of the time series at a 5 per cent level. None of the series was stationary at a level, which validated the hypothesis of non-stationarity. Stationarity was attained after the first and second differencing respectively at a 0.05 level of significance. A cointegration test was also performed to confirm the existence or otherwise of a long-run equilibrium relationship at 0.05 level. The results indicate long-run equilibrium relationships among the variables. The results of Granger Causality signify that both monetary and fiscal policies are potent stabilization instruments in gauging the health of the Nigerian economy to guarantee that the economy is prodded onto a steady long-run growth path. Therefore, it is recommended that growth in the money supply should be consciously backed up with gold and other foreign hard currencies to guarantee price stability, and that, the Federal Government should establish a coordinating agency to synchronize conflicting monetary and fiscal policies and implementation that are inimical to the attainment of the macroeconomic goal of economic stabilization and growth.

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Impact of Monetary Policy on Small Scale Enterprises Financing in Nigeria

Cited by 2 publications

References 0 publications

Influence of Monetary Policy on The Credit Supply To Small and Medium Scale Enterprises In Nigeria (1993 -2018)

Influence of Monetary Policy on The Credit Supply To Small and Medium Scale Enterprises In Nigeria (1993 -2018)

An Estimation of Causal Interaction Between Monetary and Fiscal Stabilization Policies on Economic Growth in Nigeria

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