Research Article

Effect of Sectoral Credit Allocation and Interest Rate on Corporate Financial Performance of Listed Manufacturing Firms in Nigeria.

Kabir Adedeji Ibrahim1*
1 Ahmadu Bello University, Zaria
* Corresponding author: ibrahimkabiradedeji@gmail.com
Published: Aug, 2025
DOI: 10.67203/jarmf.2025.qwhcw00f
Pages: 66-79

Abstract

The study examined the effect of credit facilities and interest rate on corporate financial performance of listed manufacturing firms in Nigeria. Data for the study were sourced from the annual reports and accounts of the sampled firms for the period of ten years spanning through 2013 to 2022, the collected data were analyzed using Panel regression analysis, result of the analysis showed that credit facilities had significant and negative effect on the financial performance of the sampled manufacturing firms in Nigeria. It was also revealed that the effect of interest rate on return on asset of manufacturing firms in Nigeria is significant and negative. Accordingly, the study concludes that sectoral allocation and interest rate are significant determinants of financial performance. Considering the negative and significant effect of credit facilities on the profit of manufacturing firms in Nigeria the study therefore, recommends that the Central Bank of Nigeria should lower the monetary policy rate (MPR) in order to drive down lending rate to a single digit so as to encourage borrowing for investment

Keywords

Sectoral allocation Interest rate and Financial performance

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How to Cite

Ibrahim, K. A. (2025). Effect of Sectoral Credit Allocation and Interest Rate on Corporate Financial Performance of Listed Manufacturing Firms in Nigeria.. Journal of Actuarial, Risk Management and Finance, 1(1), 66-79. https://doi.org/10.67203/jarmf.2025.qwhcw00f

K. A. Ibrahim, "Effect of Sectoral Credit Allocation and Interest Rate on Corporate Financial Performance of Listed Manufacturing Firms in Nigeria.," Journal of Actuarial, Risk Management and Finance, vol. 1, no. 1, pp. 66-79, August 2025. doi: 10.67203/jarmf.2025.qwhcw00f

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