Bank Lending, Macro-Policy Variables and the Growth of Small Scale Industries in Nigeria
Bassey, Nsikan Edet; Asinya, Francis Anoka; Amba, Esu-Amba Antakikam

Abstract
The paper employed time series data obtained from the Central Bank of Nigeria for the period 1992-2011 to examine the impact of bank lending and macroeconomic policy on the growth of Small Scale Enterprises in Nigeria. Data were analyzed using the Ordinary Least Square (OLS) regression technique. The data was first examined for unit roots using the Augmented Dickey Fuller (ADF) with view to ascertaining their stationarity. Result revealed that all the variables were stationary at first difference except government expenditure. Empirical findings further revealed that Commercial bank credit finance and industrial capacity utilization exerted significant positive impact on the growth of Small Scale Enterprises. Also, while exchange rate had a significant negative effect on the growth of Small Scale Enterprises, surprisingly, government expenditure and interest rate charged by banks fails to explain the variation in the growth of Small Scale Enterprises in the period under investigation. This informed the need to pursue policies that would ensure access to short, medium and long-term bank credit finance at concessionary interest rate and less stringent conditions, ensure proper funding of the sector by government, enhance the install capacity utilization rates of manufacturing sector and reduce exchange and interest rates as the way out.

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