Bank Credit and ICT Sector Growth in Nigeria

This study investigated the relationship between bank credit and the growth of the Information and Communication Technology (ICT) sector in Nigeria, covering the period 2009–2023. To attain the objectives, a multiple linear regression model was specified with total private sector credit, prime lending rate, money supply (M2), and active internet subscriptions as independent variables ICT contribution to Gross Domestic Product (GDP) was the dependent variable. The Ordinary Least Squares (OLS) method was employed to carry out the empirical analysis. Data were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin, the National Bureau of Statistics (NBS), and the Nigerian Communications Commission (NCC). The findings revealed that credit to the private sector had a positive and significant impact on ICT growth, showing that access to credit facilitates expansion of the sector. Prime lending rate exhibited a negative relationship with ICT performance, indicating that higher borrowing costs discourage investment, though the effect was weak. Money supply (M2) was found to have a positive but insignificant impact on ICT contribution to GDP, suggesting that liquidity supports general economic activity but not specifically ICT growth. Active internet subscriptions also showed a positive but statistically insignificant impact, highlighting that digital penetration enhances ICT performance, though not strongly. The study concludes that credit availability plays a crucial role in ICT development in Nigeria, while high lending costs and weak financial targeting constrain growth. It recommends policies to expand credit access, lower lending rates, and strengthen digital infrastructure to enhance the ICT sector’s contribution to sustainable economic growth.