AABSTRACT
This research study, by means of a robust statistical analysis investigates the
impact of deposit money bank on the manufacturing sector in Nigeria. Data
from 1980-2011 were examined. The empirical analysis carried out showed that
the lag of exchange and commercial bank credit have a significant and positive
impact on manufacturing sector in Nigeria within the period under review, and
as such the monetary and capital market in Nigeria should be further developed
to meet standards and provide the necessary capital for the manufacturing
sector. Also the government and relevant authorities should see to the
strengthening of the exchange rate.

TABLE OF CONTENT
Title page i
Certification ii
Dedication iii
Acknowledge iv
Abstract v
Table of content vi
CHAPTER ONE
1.1 introduction
1.2 statement of problems
1.3 objectives of study
1.4 research questions
1.5 hypothesis
1.6 significance of study
1.7 scope of study
1.8 definition of terms
CHAPTER Two : literature Review
2.1Theoretical review 1
2.2Empirical review 2
2.3Limitation of previous work. 3
CHAPTER THREE: METHODOLOGICAL FRAMEWORK
3.1 Model specification
3.2 Test for stationarity
3.3 Test for co-integration
3.4 Estimation procedure
3.5 Evaluation procedure
3.6 Evaluation based on economic criteria
3.7 Evaluation based on statistics (first order)
3.8 Econometric test ( second order)
3.9 Source of data.
CHAPTER FOUR:DATA PRESNTATION AND INTERPRETATION OF RESULT
4.1 Presentation of result
4.2 Interpretation of the result
4.3 Interpretation of the regression co-efficients
4.4 Evaluation based on economic criteria
4.5 Stastical test criteria (first order test)
4.6 Economic test ( second order)
4.7 Normality test
4.8Test for multicollinearity
4.9 Heterosdasticity test
4.10Hypothesis testing conclusion
CHAPTER FIVE:SUMMARY RECOMMENDATION AND CONCLUSION
5.1 Summary findings
5.2 Recommendation
5.3 Conclusion
5.4 Bibilograpghy
CHAPTER ONE
BACKGROUND OF THE STUDY
Manufacturing is the capacity to produce goods with labour, materials and
inputs produced by others. Simple forms of manufacturing have characterized
all organised societies but the application of steam power to production in
Britain in the late eighteenth and early nineteenth centuries significantly
increased the capacity for production, and since this first industrial revolution,
economic progress has in many peoples minds been linked with the capacity
to produce and trade in manufactured products.
Manufactures now dominate world trade and typically are around 80 percent
of world exports in any year with developing accounting for nearly one- third
of this. In the bulk of developing countries, outside the LDCs and the oil rich
states, manufacturers account for a majority of export revenue. In terms of
regional distribution, the bulk of developing country manufactured exports
come from East Asia (70 percent in 2005) with approximately 40 percent of
those from china.
Export data are also available by product category gives developing country
and regional shares is manufactured exports by selected types of product. It
shows developing countries as a group taking more than 50 percent of world
exports in the labour intensive, simple technology categories of textiles,
footwear and leather
The banking sector in Nigeria in 2006 financial year was oligopolistic in
structure as only ten banks 11.1% of the 90 operation accounted for 54.5% of
total assets, 52.4% of total deposit liabilities and 46.1% of total deposit
liabilities of deposit money bank as at 31/12/2006 amounted to #2,705 billion.
Whilst aggregate credit to the domestic economy amounted to #1,302.2
billion. In 2006, sectoral allocation of deposit money banks credit continued to
favour the less productive sector of the economy as only 40.9% of the total
credit went to agriculture, solid minerals, exports and manufacturing down
from 46.2% in 2001.
In the year 2007, the general performance of banks was not significantly
different from what happened in the previous year. Ten banks out of the 89 in
operations accounted for 55.3% of total credit. At 3,047.9 billion, the
aggregate assets, the level as at Dec 31 2006.
The manufacturing sector or service enterprise with capital investment
exceeding #950,000 in machinery and equipment. The importance of
manufacturing sector in the promotion of economic development has always
been at the front developing strategies. More so, Nigeria like other
developing nations adopted the use of import substitution policy as a means
of manufacturing. This aims of producing domestic consumer goods in those
industries.
Major functions of Nigeria deposit money banks
1. Acceptance and safe keeping of deposits
2. Granting credit facilities to consumers
3. Transferring funds on the instructions to customers
4. Management of customers investments
5. Acting as executors and trustees of “wills”
6. Providing facilities for safe-keeping of important documents and other
valuables.
7. Providing foreign exchange facilities to travellers
8. Advising customers on insurance matters
9. Project finance
10.Providing financial advisory services to customers
11.Packaging real estate transactions.
Statement of problem
The nation had enunciated import substitution and processing of raw
materials policies in the past. These had made the sector to be
dependent on the industrialised nation of the world for capital
equipment and contributed in no small way to our present economic
predicament. The sector is currently heavily dependent on importation
of raw material and spare parts. This has put pressure on the countries
foreign exchange earnings.
Manufacturing sector like any other business cannot be carried on
extensively unless funds are available for maintenance and
procurement of equipment and necessary inputs. on the other hand
deposit money banks accused the manufacturer of loan given to them.
Thereby not bringing high degree of loss in their banking activities.
Unfaithful and dishonest to them are being critized sequels to this
manufacturer. moreover the small scale business can hardly be over
stressed, most manufacturer in Nigeria economy have been denied of
attention report assessment or could it be that the deposit money bank
are not playing their role in promoting manufacturing?
Adequate funding is a requirement for running a successful
business and it is certainly one of the major reasons for the poor
performance of most companies in the Nigeria manufacturing sector.
This is because banks are wary of investing their distressed sector that is
hemmed in by a hostile business environment is not encouraging. Sad
enough, the evolving scenario these days, at least before the crash in
the capital market, is that the capitalists and banks prefer to advance
facilities to clients to enable them invest in securities market. Such
clients would in turn go to bad” and watch their investments multiply
over night without doing anything rather than too invest such money in
any SME (small and medium scale enterprise) or so called “risky”
business. This thinking of the capitalists and the banks further weakened
the real sector thereby denying the manufacturing sector the
opportunity to generate employment.
OBJECTIVE OF THE STUDY
1. To find out if inadequate credits from the deposit money banks to the
manufacturing sector has contributed to the reduction in the
productivity of the manufacturing sector.
2. To determine how the unwillingness of the deposit money bank to give
loans to the manufacturing sector has affected.
3. Also to look into the problems that militates against the manufacturing
sector apart from finance in Nigeria and the recommendation where
necessary.
HYPOTHESIS OF THE STUDY
The following hypothesis are tested on this study
Ho: The manufacturing sector contribution has no significant impact to
lending in the deposit money bank.
Ho: Deposit money bank interest rate has no significance effect on
manufacturing development in Nigeria.
SIGNIFICANCE OF THE STUDY
The result of the study will provide an insight into the relationship between
deposit money bank credit and the manufacturing sector. It will provide the
basis for which policies should be made by the government through the
monetary authority (the central bank of Nigeria) towards the prioritizing of
credits granted to the manufacturing sector.
Again, it will expose the important role the deposit money banks play
towards the productivity of the manufacturing sector and to therefore
make sure that there is a good working relationship between sectors.
The study makes clear the actual contribution and operations of deposit
money banks in Nigeria. It will also sensitize the society on the importance
of deposit banks in Nigeria.
The study will be important to the policy makers and the government in
order that to adopt and implement policy measures that will boost the
economy through the financial institution.
It will also depict the negative and positive side of the activities of the
negative and positive side of the activities of the general public and
bankers, for some correction and changes in order to boost the economy.
Also, it is believe that the findings of this research will lead to further on
how deposit money banks and the other manufacturing sector, which will
eventually lead to the development of the economy.
The usefulness of this study is that it will highlight to the nation as a
whole on how best to manipulate deposit money bank loans for financing in
order to improve the state of industrial product in the country.
It will also give the government an overview of constraint of industrial
financing and how best to manage deposit money bank loan in order to
yield output.
It will show deposit money banks how to increase industrial financing
for growth in the economy.
RESEARCH QUESTIONS
These are self guide question used to guide the research in the course of
providing solution to the problem
The following are questions that arise when drawing references from
the study.
a. How does deposit money bank significant to influence on the
manufacturing output.
b. Does manufacturing development depend on the deposit money bank
loan.
c. Do deposit money banks give loan for manufacturing finance?
d. If so, to what extent has the manufacturing sector growth since the
assistance started.
e. Is there any relationship between deposit money banks financing and
the Nigeria industrial growth?
LIMITATION OF THE STUDY
The main task of the study is to given in full determine the impact of
deposit money banks in fund mobilization for industrial growth and
development but due to insufficient time for industrial growth and
development but due to insufficient time frame for the purpose of simple
and articulate analysis, the study is restricted to deposit money banks
specifically. The study is limited to the period of 2005-2010 which saw the
significant impact played by the financial sector in the Nigerian economy.
BSTRACT
This research study, by means of a robust statistical analysis investigates the
impact of deposit money bank on the manufacturing sector in Nigeria. Data
from 1980-2011 were examined. The empirical analysis carried out showed that
the lag of exchange and commercial bank credit have a significant and positive
impact on manufacturing sector in Nigeria within the period under review, and
as such the monetary and capital market in Nigeria should be further developed
to meet standards and provide the necessary capital for the manufacturing
sector. Also the government and relevant authorities should see to the
strengthening of the exchange rate.

TABLE OF CONTENT
Title page i
Certification ii
Dedication iii
Acknowledge iv
Abstract v
Table of content vi
CHAPTER ONE
1.1 introduction
1.2 statement of problems
1.3 objectives of study
1.4 research questions
1.5 hypothesis
1.6 significance of study
1.7 scope of study
1.8 definition of terms
CHAPTER Two : literature Review
2.1Theoretical review 1
2.2Empirical review 2
2.3Limitation of previous work. 3
CHAPTER THREE: METHODOLOGICAL FRAMEWORK
3.1 Model specification
3.2 Test for stationarity
3.3 Test for co-integration
3.4 Estimation procedure
3.5 Evaluation procedure
3.6 Evaluation based on economic criteria
3.7 Evaluation based on statistics (first order)
3.8 Econometric test ( second order)
3.9 Source of data.
CHAPTER FOUR:DATA PRESNTATION AND INTERPRETATION OF RESULT
4.1 Presentation of result
4.2 Interpretation of the result
4.3 Interpretation of the regression co-efficients
4.4 Evaluation based on economic criteria
4.5 Stastical test criteria (first order test)
4.6 Economic test ( second order)
4.7 Normality test
4.8Test for multicollinearity
4.9 Heterosdasticity test
4.10Hypothesis testing conclusion
CHAPTER FIVE:SUMMARY RECOMMENDATION AND CONCLUSION
5.1 Summary findings
5.2 Recommendation
5.3 Conclusion
5.4 Bibilograpghy
CHAPTER ONE
BACKGROUND OF THE STUDY
Manufacturing is the capacity to produce goods with labour, materials and
inputs produced by others. Simple forms of manufacturing have characterized
all organised societies but the application of steam power to production in
Britain in the late eighteenth and early nineteenth centuries significantly
increased the capacity for production, and since this first industrial revolution,
economic progress has in many peoples minds been linked with the capacity
to produce and trade in manufactured products.
Manufactures now dominate world trade and typically are around 80 percent
of world exports in any year with developing accounting for nearly one- third
of this. In the bulk of developing countries, outside the LDCs and the oil rich
states, manufacturers account for a majority of export revenue. In terms of
regional distribution, the bulk of developing country manufactured exports
come from East Asia (70 percent in 2005) with approximately 40 percent of
those from china.
Export data are also available by product category gives developing country
and regional shares is manufactured exports by selected types of product. It
shows developing countries as a group taking more than 50 percent of world
exports in the labour intensive, simple technology categories of textiles,
footwear and leather
The banking sector in Nigeria in 2006 financial year was oligopolistic in
structure as only ten banks 11.1% of the 90 operation accounted for 54.5% of
total assets, 52.4% of total deposit liabilities and 46.1% of total deposit
liabilities of deposit money bank as at 31/12/2006 amounted to #2,705 billion.
Whilst aggregate credit to the domestic economy amounted to #1,302.2
billion. In 2006, sectoral allocation of deposit money banks credit continued to
favour the less productive sector of the economy as only 40.9% of the total
credit went to agriculture, solid minerals, exports and manufacturing down
from 46.2% in 2001.
In the year 2007, the general performance of banks was not significantly
different from what happened in the previous year. Ten banks out of the 89 in
operations accounted for 55.3% of total credit. At 3,047.9 billion, the
aggregate assets, the level as at Dec 31 2006.
The manufacturing sector or service enterprise with capital investment
exceeding #950,000 in machinery and equipment. The importance of
manufacturing sector in the promotion of economic development has always
been at the front developing strategies. More so, Nigeria like other
developing nations adopted the use of import substitution policy as a means
of manufacturing. This aims of producing domestic consumer goods in those
industries.
Major functions of Nigeria deposit money banks
1. Acceptance and safe keeping of deposits
2. Granting credit facilities to consumers
3. Transferring funds on the instructions to customers
4. Management of customers investments
5. Acting as executors and trustees of “wills”
6. Providing facilities for safe-keeping of important documents and other
valuables.
7. Providing foreign exchange facilities to travellers
8. Advising customers on insurance matters
9. Project finance
10.Providing financial advisory services to customers
11.Packaging real estate transactions.
Statement of problem
The nation had enunciated import substitution and processing of raw
materials policies in the past. These had made the sector to be
dependent on the industrialised nation of the world for capital
equipment and contributed in no small way to our present economic
predicament. The sector is currently heavily dependent on importation
of raw material and spare parts. This has put pressure on the countries
foreign exchange earnings.
Manufacturing sector like any other business cannot be carried on
extensively unless funds are available for maintenance and
procurement of equipment and necessary inputs. on the other hand
deposit money banks accused the manufacturer of loan given to them.
Thereby not bringing high degree of loss in their banking activities.
Unfaithful and dishonest to them are being critized sequels to this
manufacturer. moreover the small scale business can hardly be over
stressed, most manufacturer in Nigeria economy have been denied of
attention report assessment or could it be that the deposit money bank
are not playing their role in promoting manufacturing?
Adequate funding is a requirement for running a successful
business and it is certainly one of the major reasons for the poor
performance of most companies in the Nigeria manufacturing sector.
This is because banks are wary of investing their distressed sector that is
hemmed in by a hostile business environment is not encouraging. Sad
enough, the evolving scenario these days, at least before the crash in
the capital market, is that the capitalists and banks prefer to advance
facilities to clients to enable them invest in securities market. Such
clients would in turn go to bad” and watch their investments multiply
over night without doing anything rather than too invest such money in
any SME (small and medium scale enterprise) or so called “risky”
business. This thinking of the capitalists and the banks further weakened
the real sector thereby denying the manufacturing sector the
opportunity to generate employment.
OBJECTIVE OF THE STUDY
1. To find out if inadequate credits from the deposit money banks to the
manufacturing sector has contributed to the reduction in the
productivity of the manufacturing sector.
2. To determine how the unwillingness of the deposit money bank to give
loans to the manufacturing sector has affected.
3. Also to look into the problems that militates against the manufacturing
sector apart from finance in Nigeria and the recommendation where
necessary.
HYPOTHESIS OF THE STUDY
The following hypothesis are tested on this study
Ho: The manufacturing sector contribution has no significant impact to
lending in the deposit money bank.
Ho: Deposit money bank interest rate has no significance effect on
manufacturing development in Nigeria.
SIGNIFICANCE OF THE STUDY
The result of the study will provide an insight into the relationship between
deposit money bank credit and the manufacturing sector. It will provide the
basis for which policies should be made by the government through the
monetary authority (the central bank of Nigeria) towards the prioritizing of
credits granted to the manufacturing sector.
Again, it will expose the important role the deposit money banks play
towards the productivity of the manufacturing sector and to therefore
make sure that there is a good working relationship between sectors.
The study makes clear the actual contribution and operations of deposit
money banks in Nigeria. It will also sensitize the society on the importance
of deposit banks in Nigeria.
The study will be important to the policy makers and the government in
order that to adopt and implement policy measures that will boost the
economy through the financial institution.
It will also depict the negative and positive side of the activities of the
negative and positive side of the activities of the general public and
bankers, for some correction and changes in order to boost the economy.
Also, it is believe that the findings of this research will lead to further on
how deposit money banks and the other manufacturing sector, which will
eventually lead to the development of the economy.
The usefulness of this study is that it will highlight to the nation as a
whole on how best to manipulate deposit money bank loans for financing in
order to improve the state of industrial product in the country.
It will also give the government an overview of constraint of industrial
financing and how best to manage deposit money bank loan in order to
yield output.
It will show deposit money banks how to increase industrial financing
for growth in the economy.
RESEARCH QUESTIONS
These are self guide question used to guide the research in the course of
providing solution to the problem
The following are questions that arise when drawing references from
the study.
a. How does deposit money bank significant to influence on the
manufacturing output.
b. Does manufacturing development depend on the deposit money bank
loan.
c. Do deposit money banks give loan for manufacturing finance?
d. If so, to what extent has the manufacturing sector growth since the
assistance started.
e. Is there any relationship between deposit money banks financing and
the Nigeria industrial growth?
LIMITATION OF THE STUDY
The main task of the study is to given in full determine the impact of
deposit money banks in fund mobilization for industrial growth and
development but due to insufficient time for industrial growth and
development but due to insufficient time frame for the purpose of simple
and articulate analysis, the study is restricted to deposit money banks
specifically. The study is limited to the period of 2005-2010 which saw the
significant impact played by the financial sector in the Nigerian economy.