DEPOSIT MONEY BANKS AND ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA

Abstract

This study is an attempt to examine the effect of deposit money banks on entrepreneurship development in Nigeria. The study adopted a descriptive ex-post facto research design while the data used were sourced from Central Bank of Nigeria (CBN) statistical bulletin (various issues), The National Bureau of Statistic (NBS) from 1992 – 2015. Both the descriptive statistical approach of central tendencies and dispersion and regression analysis were used for data analysis. The result of the regression result shows that deposit money bank credit has a significant positive effect on entrepreneurship development while saving and time deposits of deposit money banks also have a significant positive effect on entrepreneurship development. On the other hand, deposit money banks’ lending rate had a negative insignificant effect on entrepreneurship development, suggesting that deposit bank lending rate discourages investors, customers, business owners and entrepreneurs from taking loans. This study among others recommends that government should review and address the high lending rate charged by deposit money banks in Nigeria as it deters entrepreneurship development which is essential for economic growth for a developing country like Nigeria.