THE IMPACT OF DEVELOPMENT BANKS ON THE GROWTH OF THE NIGERIAN EECONOMY

This study examines the impact of development banks on the growth of the Nigerian economy. The research focuses on the roles of the Bank of Industry (BOI) and the Nigerian Export-Import Bank (NEXIM) in providing financial support, fostering economic growth, and alleviating poverty from 1990 to 2023.
The study addresses the problem that despite the establishment of development banks, their tangible impact on the Nigerian economy is not well understood. The research questions and objectives are centered on analyzing the effects of development banks' lending rates, inflation rates, and exchange rates on Nigeria's Gross Domestic Product (GDP).
The methodology employs a quantitative and inferential approach, using secondary data from sources such as the World Bank, IMF, and the Central Bank of Nigeria. The findings indicate that development bank lending has a positive and statistically significant impact on GDP. Conversely, inflation and exchange rates have a negative association with GDP.
The study concludes that while development banks have made significant contributions, challenges such as inadequate funding, poor management, and a lack of transparency still need to be addressed to maximize their effectiveness. It recommends that development banks increase their lending to the private sector and that the government implement policies to stabilize the exchange rate.