East Asian Journal of Multidisciplinary Research (EAJMR)
Vol.2, No.2, 2023: 511-524
511
(
DOI : https://10.55927/eajmr.v2i2.2881
ISSN-E: 2828-1519
https://journal.formosapublisher.org/index.php/eajmr/index
Interest Rate, Savings, and Industrial Performance in Nigeria
Adegboyega S. Oyewole
1*
, Ogunwale Sunday Adeniyi
2
, Odumbaku Abibat
Lawal
3
, Mobee Taiwo Ajayi
4
, William Adekunle
5
1
Dept. of Business Ed., Micheal Otedola College of Primary Education, Noforija-
Epe, Lagos,
2
Department of Economics, Ajayi Crowther University, Oyo State,
3
Osun State College of Education, Ila Orogun, Osun State, Nigeria,
4,5
Department of Economics, Lagos State University, Ojoo, Lagos, Nigeria
Corresponding Author: Adegboyega S. Oyewole oyewoleas@mocped.edu.ng
A R T I C L E I N F O A B S T R A C T
Keywords: Saving, Industrial,
Productivity
Received : 09, December
Revised : 12, January
Accepted: 25, February
©2023 Oyewole,Adeniyi,Lawal,
Ajayi,Adekunle: This is an open-
access article distributed
under the terms of the Creative
Commons Atribusi 4.0
Internasional.
This study examined the effect of interest rate and
savings on industrial productivity in Nigeria. This
is imperative because there has been low level of
savings and investment amongst other impedime
nt to industrial productivity. The Ordinary Least
Square OLS multiple regression analysis was
applied on data from Central Bank of Nigeria
(CBN) Statistical Bulletin in a model where
industrial sector output was the dependent
variable while national savings, interest rate INTR
and inflation rate INFL were the explanatory
variables. The result of the analysis at 5% level of
significance shows clearly that savings exerts a
significant impact on industrial output in Nigeria.
the result also showed that interest rate and
inflation rate does not have a significant impact on
industrial output in Nigeria. The study concluded
that, savings has a significant positive impact on
industrial output while the impact of interest rate
and inflation rate on industrial output in Nigeria
was positive but insignificant. It was
recommended that there is a need to bridge the
widening gap between lending rate and savings
rate to encourage savings to generate needed
loanable funds for investment in Nigeria.