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BANKING SECTOR REFORMS AND ECONOMIC PERFORMANCE
INTRODUCTION
This study focuses on the implications of Credit to private Sector on the economic growth of Nigeria. Reforms have been introduced and implemented in Nigeria over the last three decades. The impact of these reforms on the economic growth have not been well felt by the citizens. The study is to determine the relationship between Credit to private Sector and economic growth of Nigeria. Regression model was used to present the estimates evaluated with T-test, F-test, DW-test and standard error estimates used to test the level of significance. The study found out statistical significance between Credit to Private Sector (CPS) and Real Gross Domestic Product (RGDP) in billions (N).furthermore, if there is one (1) million of Credit Private Sector (CPS) in the economy, the real output (RGDP) of the economy will increase by some significant percent of total increase in Credit to Private Sector (CPS).The Nigerian banking sector should increase the amount of credit given to private sector; this will in turn contributes greatly to the growth of Real Gross Domestic Product (GDP)bringing about increase in economic growth of the economy at large. The research concludes that bank reforms have resulted in making banks more efficient, reliable and their intermediating potentials have also been revived.
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