NON-PERFORMING LOANS AND ECONOMIC GROWTH IN NIGERIA

Authors

  • Simon Ogaga Federal University of Lafia Author
  • Walter Okwudili Ugwuoke Federal University of Lafia Author
  • Freeman Aye-Agele Federal University of Lafia Author

Keywords:

Asymmetry, Non-performing Loans, Economic Growth, NARDL

Abstract

The study employed a quantitative technique to examine the asymmetric relationship between non-performing loans of commercial banks and economic growth in Nigeria. Covering the period 2007 to 2022, the study used the Non-linear Auto Regressive Distributed Lag approach to analyse the short-run and long-run impact of non-performing loans on key sectors within the Nigerian economy. Findings indicated an asymmetric relationship between non-performing loans and economic growth in Nigeria. The study concluded that rising inflation has increased the cost of borrowing and contributed to non-performing loans, thereby adversely affecting economic growth.

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Published

2024-06-01

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Section

Articles