THE EFFECT OF FINANCIAL DEREGULATION ON

INDUSTRY PRODUCTION IN NIGERIA

BY

ALINTAH RICHARD ARINZE

MAT. NO: MGS0904072

BEING A RESEARCH WORK SUBMITTED TO THE

DEPARTMENT OF BANKING AND FINANCE IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF A B.Sc. IN BANKING AND
FINANCE, IN THE UNIVERSITY OF BENIN, BENIN
CITY, NIGERIA.

OCTOBER, 2012.

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 CERTIFICATION

We, the undersigned certify that this project work

was carried out by Alintah Richard Arinze of the

Department of Banking and Finance. It is accepted in

meeting with the requirement for the award of B.Sc. in

Banking and Finance.

____________________ _______________________
DR. Amadasu, D.E Mrs. G.A. Nwokoye
Project Supervisor) (Project Coordinator)

DATE: _________________ DATE: _________________

____________________________
VEN. Prof. I.O. Osamwonyi
(Head of Department

Date:___________________

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 DEDICATION

This piece of work at fist, is dedicated to God

Almighty who made it possible to its realization, my

father, Mazi Dennis .O. Alintah and my mother Thereza

.O. Alintah, and brothers and sisters, Emmanuel,

Daniel, Agnes (Mrs), Jonathan, Uchechukwu and Mr.

and Mrs. Mbah for their financial and moral support

throughout the period of my study. “Thank You All”

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 ACKNOWLEDGEMENT

I must express my sincere appreciation to the

following people. My project supervisor Dr. Amadasu,

D.E., whose effort in supervising the work facilitated,

the gimmely completion of the project, notwithstanding

inspied of his favour. My length appreciation goes to a

lovely father Mazi Dennis O. Alintah and my mother

Thereza O. Alintah, and brothers and sisters,

Emmanuel, Daniel, Agnes (Mrs.) and those well-

wishers for their encouragement.

I am grateful to my lovely friend –Iyare Iyore

Blessing and a very good friend of mine, Eronzi, Kaly

Chizzy, Ik Davis and those my group colleagues

Lejkan, Emma, Chris and Mayowa for their immense

contribution in the course of the work.

May Almighty God reward you all abundantly in

Jesus name Amen.

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 TABLE OF CONTENTS

Page

CHAPTER ONE

INTRODUCTION

Title Page ………………………………………………… i

Certification ……………………………………………… ii

Dedication ………………………………………………… iii

Acknowledgement ……………………………………….. iv

Table of Content ………………………………………….. vi

Abstract……………………………………………………... viii

1.1 Background to the study………………………… 1

1.2 Statement of problems………………..………….. 2
1.3 Objectives of the study……………………………. 8
1.4 Statement of Research Hypothesis…………….. 9
1.5 Significance of the study………………………... 10
1.6 Scope and limitation of the study……………... 11

CHAPTER TWO

2.1 Conceptual Classification………………………. 13

2.2 Effects of Financial deregulation on the Nigeria

economy……………………………………………………. 17

2.3 Financial Deregulation and Implications……. 24

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2.4 Financial Deregulation on Industrial

Production…………………………………………….. 32

CHAPTER THREE

THEORETICAL FRAMEWORK

3.1 Theoretical Framework …………………………… 37

3.2 Data Collection Source…………………………… 39

3.3 Model Specification ……………………………… 39

CHAPTER FOUR

PESENTATION AND ANALYSIS OF RESULTS

4.1 Presentation of Regression Results ………….. 42

4.2 Analysis of Regression Result ………………….. 43

4.3 Policy Implementations of Empirical Finding … 45

CHAPTER FIVE

Summary, Recommendation and Conclusion

5.1 Summary…………………………………………… 50

5.2 Policy Recommendation ……………………….. 52

5.3 Conclusion ……………………………………….. 55

Bibliography …………………………………….. 58

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 ABSTRACT

In the 1980’s and 1990’s most African countries

including Nigeria were faced with severe economic

crisis resulting in falling per capital incomes and

determinations of social conditions, which were faced

with both internal and external problem.

Nigeria like other developing countries adopted

deregulation as a means of to put the manufacturing

sector on the part of sustainable growth. Several

elements of liberalization to increase in industrial

output.

This study examines financial study liberalization

with a view to whether it actual leads to economic

growth in Nigeria economy. Adopting the ordinary least

square estimating techniques the results shows that

the targeted liberalization variation had the potential of

inducing long run manufacturing output of

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macroeconomic policies had been properly harnessed

and administered.

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