Volume 2 - Issue 2, March - April 2026

This study explores the connection between short-term credits of selected financial instruments and human development in Nigeria within the years 1986 to 2023. More specifically, the study sought to analyze both the short-run and long-run impacts of Bankers’ Acceptances (BAAC), Commercial Paper (COPA), Commercial Bank Overdrafts (OVDT), and Term Loans (TEML) on the Human Development Index (HDI) formulated in to two distinct research questions. The Central Bank of Nigeria and World Bank statistical bulletin for various years served as the primary data sources for this research. The study employed descriptive statistics, unit root tests, Johansen co-integration, and the parsimonious error correction model (PECM). The research found that all variables were stationary at first difference and required Johansen co-integration which confirmed the existence of long-run relationships among the variables. PECM demonstrated that both BAAC and OVDT positively and significantly impact HDI, demonstrating that short-term credit facilities are crucial in bolstering human development by supporting welfare-enhancing and income-generating activities. On the contrary, COPA and TEML have an insignificant impact on HDI which reflects a lack of immediate relevant developmental impacts possibly resulting from structural inefficiencies and accessibility barriers. The research concluded that BA and OU overdrafts constitute the key segments of short-term credits that foster economic development in Nigeria. Thus, the study recommended for specific policy initiatives to enhance access to short-term credit while recalibrating long-term lending to focus on human capital-intensive areas to promote inclusive development in Nigeria.

Josiah Chirotara Iheanacho,"Short-Term Credits and Economic Development in Nigeria" International Journal of Advanced Multidisciplinary Research and Educational Development, V2(2): Page(624-632) Mar-Apr 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.