A Review on the Role of Commercial Banks to Economic Growth in Nigeria

Abstract

This study attempted to review the roles played by financial institutions especially commercial banks toward economic growth of Nigeria. Literatures on financial institutions and economic growth (1971-2020) were reviewed in order to appreciate the relationship that exists between commercial banks and economic growth. It is found that commercial banks as financial intermediaries play a significant role of intermediation between lenders(surplus) and borrowers(deficits) of funds in Nigeria. However, this is not without some challenges. Social- political and economic instabilities were found to be major obstacles blocking the route to Nigeria’s economic growth. It is therefore recommended that, a concerted government effort is needed in order to control the looming macroeconomic instabilities in Nigeria thereby creating enabling environment for financial institutions to contribute to the growth and development of the economy.