Recapitalisation and Real Sector Performance in Nigeria: An Ardl Analysis of the Service Sector (Published)
The purpose of this study is to investigate the impact of banking sector reforms on the overall performance of real sectors in Nigeria, with a particular emphasis on how such changes will affect the service sector. The statistical bulletin, annual report, and statement of accounts of the Central Bank of Nigeria (CBN) were the sources of the aggregate time series data that were used in this study, which covered the period from 1981 to 2020. The ARDL technique was utilised in the analysis of the data. The recapitalization policy is positive and statistically significant both in the short run and in the long run, indicating that the Nigerian real sector did perform better after the introduction of the recapitalization policy in Nigeria; and the relationship between banking sector recapitalisation and real sector performance. Capital base of banks, credit to private sector, and mobilisation of savings all have a favourable effect on the performance of the service industry. Based on the findings of the analysis, the study concludes that the capital base of banks, credit to the private sector, and mobilisation of savings all have a favourable effect on the performance of the service industry. According to the findings of the study, it is recommended that credit be made continuously available in a financial market economy that is unregulated, as this has the potential to stimulate the outputs of the national real sector, which would ultimately lead to economic expansion and development in Nigeria.
Keywords: ARDL, Performance, Real Sector, recapitalisation, services sectors