Akpan, D. B.Yilkudi, D. J.Opiah, D. C.2019-04-082019-04-082016-03Akpan, D. B., Yilkudi, D. J. and Opiah, D. C. (2016). The impact of lending rate on the manufacturing sector in Nigeria. CBN Economic and Financial Review, 54(1), 43-69.1957-2968http://repo.cbn.gov.ng/jspui/handle/123456789/790The study investigates the impact of lending rate on output of the manufacturing subsector using the vector error correction model and annual data from 1981 - 2014. The empirical results indicated that high lending rate had negative impact on manufacturing output in the long-run. The study, therefore recommends the implementation of investment friendly policies that narrows, the lending rate by the deposit money banks in order to stimulate output growth in the manufacturing sub-sector and allow global competitiveness of products.enDeposit money banks,Intermediation,Lending rate,Manufacturing capacity utilisation,Manufacturing sectorVector Error Correction Model (VECM)Co-integrationNigeriaArticle