International Journal of Economics and Financial Research ISSN(e): 2411-9407, ISSN(p): 2413-8533 Vol. 2, No. 4, pp: 74-78, 2016 URL: http://arpgweb.com/?ic=journal&journal=5&info=aims *Corresponding Author 74 Academic Research Publishing Group Bank Credits to Agricultural and Manufacturing sectors and Economic Growth in Nigeria, 1970 – 2013 Ipalibo Watson Sogules University of Port Harcourt, Port Harcourt, Rivers State, Nigeria Emeka Nkoro * University of Port Harcourt, Port Harcourt, Rivers State, Nigeria 1. Introduction No nation can achieve economic growth and development without efficient and viral financial institution- Banking sector. The Banking sector mobilizes and channels resources to potential investors that lack adequate capital. In turn the potential investors use it to generate additional wealth in the economy. As the banking sector lives up to its expectation of mobilizing and channeling credits to the productive sectors such as manufacturing and agriculture, it will provide an immense deal of services that will stimulate economic growth. That is, if credits are properly mobilized and channeled to both sectors it will enhance growth of the economy through increase in capital investment, foreign exchange, job creation, food production, income generation and as well as improvement in the standard of living of the populace. Despite the credit guidelines and regulations of Central Bank of Nigeria such as The Agricultural Credit Guarantee Scheme Fund of 1979, The SME/Manufacturing Refinancing and Restructuring Fund of 2010, which are aimed at stimulating the growth of the agricultural and manufacturing sectors, both sectors still suffer deficient access to credits (Akinleye et al., 2003). Also, in terms of job creation, income generation, productivity, foreign exchange earnings and standard of living, both sectors have not performed well. Therefore, the question is, does Bank credits to the agricultural and manufacturing sectors impact on economic growth in Nigeria. There is a shortage of literature on the impact of Bank credits to the agricultural and manufacturing sectors on economic growth in Nigeria. Hence, the need to contribute to the scanty literature motivated this work. It is against this backdrop that the study examines the impact of Bank credits to agriculture and manufacturing sectors on economic growth in Nigeria. The rest of the work is structured as follows; Section two provides reviews of the related and relevant literature; Section three explains the methodology; Section four focuses on results and discussions while section five covers the conclusions and recommendations. 2. Empirical Literature Ijaiya and Abdulraheem (2000) investigated the impact of commercial Banks credits to agricultural sector on poverty reduction in Nigeria for the period 1980-1996 using ordinary least squares technique. The result of the analysis revealed that commercial Banks credits to agricultural sector variable appeared with its expected negative sign. The result indicated that commercial Banks credits to agricultural sector significantly impacted on poverty reduction, also demand deposits significantly impact on poverty reduction. Banks credits to agricultural sector also Abstract: This study examined the impact of Bank credits to agricultural and manufacturing sectors on economic growth in Nigeria using annual time series data from 1970-2013. Using co-integration and error correction mechanism for the analysis, the study revealed that a long run relationship exists between Bank credits to agricultural and manufacturing sectors and economic growth. Given the error correction mechanism results, the study showed that Bank credits to agricultural sector exhibited an insignificant negative impact on economic growth while Bank credits to manufacturing sector exhibited a negative significant impact on economic growth in Nigeria. Based on these findings, the study recommends among others: Bank Credits to the Agricultural and Manufacturing Sectors should be properly monitored to ensure that funds meant for agricultural and manufacturing activities are not diverted for other purposes, Intending recipients of these Bank credits to the agricultural and manufacturing sectors should be made to undergo entrepreneurial training and how to pay back as at when due, so as to reduce the risks associated in giving out these Credits to the Agricultural and Manufacturing Sectors entrepreneurs. Keywords: Bank Credits; Agricultural Sector; Manufacturing Sector; Economic Growth.