BANK OF INDUSTRY LOANS TO SOME SECTORAL SECTORS: EVIDENCE FROM NIGERIA

This study focused on Development Finance Institutions (DFIs) and the performance of the Nigeria’s economy. Development Finance Institutions, such as the Bank of Industry, are pivotal in addressing market failures by providing long-term financing for key sectors, including agriculture, infrastructure, and small and medium enterprises (SMEs). Despite their strategic importance, Nigeria witnessed high fluctuating assistance in terms of loans from BOI to the agricultural, service and individual sectors. Thus we had high fluctuating agricultural growth and industrial growth. The objectives of this study among others, are to appraise Development Finance Institutions and the performance of Nigerian E conomy and to trace the trend of loans given by the Bank of Industry to the agricultural sector, industrial and service sectors in Nigeria from the year 2000 to 2023. This study was anchored on Financial Intermediation Theory as propounded by Leonard Black (1970) and Robert C. Merton (1977), Development Finance Theory as expounded Paul Rosenstein-Rodan (1943), Albert Hirschman (1958) and Robert McNamara (1960s), Endogenous Growth Theory as propounded by Paul Romer (1986) and Institutional Theory as propounded by James G. March and Johanna P. Olsen (1980), and Douglas North (1990). Utilized quasi-experimental survey. The data were statistically analyzed using ordinary least square. This study employs secondary time-series data, which were sourced from the Central Bank of Nigeria Statistical Bulletin, World Bank Report, African Development Bank Report, Bank of Industry Annual Report, and Bank of Agriculture Annual Report. Findings from this study underscore the interdependence among economic sectors. Agriculture appears more closely tied to the Services sector, potentially due to shared value chains and rural-urban economic linkages. However, Industry's negligible impact might suggest inefficiencies or a limited integration with Services. It is therefore recommended among others that the Nigerian government and international partners should increase funding to Development Finance Institutions to ensure they have the capital needed to support a wider range of projects, especially in underserved sectors like agriculture and Small and Medium Enterprises.