Bank lending channel and household consumption expenditure in Nigeria

The primary objective of this paper is to analyze the effect of the bank lending channel on household consumption expenditure in Nigeria. Utilizing annual secondary data from the United Nations Statistical Division Database and the Central Bank of Nigeria Database, and employing the Generalized Method of Moments (GMM), the study found that lending rates significantly impact real household consumption expenditure. Additionally, the evidence suggests that the growth rate of per capita income and changes in domestic prices of nominal output also significantly affect consumption expenditure.