Effect of abnormal increase in credit supply on economic growth in Nigeria

Purpose This paper investigates the effect of abnormal increase in credit supply on economic growth Nigeria after controlling for quality legal system, size central bank asset, banking sector cost efficiency and insolvency risk. Design/methodology/approach The authors employ generalised method moments (GMM) regression methodology to estimate two measures Nigeria. Findings has a significant growth. Abnormal increases real gross domestic product (GDP) decreases GDP per capita during global financial crisis. private positive when there is strong system In contrast, negative Practical implications ineffective increasing crisis years. Policymakers should be cautious pressuring institutions release an abnormally large amount into economy particularly crises. Rather, policymakers encourage sustained manner – not –and way that supports Originality/value present study contributes literature by analysing developing country context.