MONETARY POLICY AND ECONOMIC GROWTH IN NIGERIA

Student: Ivie Beatrice Isimenmen
Supervisor: Dr Billy Abubakar
Co-Supervisor: Dr Henry Okologume
HOD: Dr Henry Okologume
Department of Banking and Finance
Financial Studies
Auchi Polytechnic, Auchi, Edo State. (affl To Nnamdi Azikiwe University, Awka)

Abstract

Abstract This study was embarked upon to ascertain the impact of monetary policy on economic growth in Nigeria for the periods 1991-2023. Prior to empirical testing, preliminary test were carried out to ascertain the level characteristics of the dataset. Empirical testing was conducted under the ordinary least square framework. Monetary policy was measured using external debt (ED), money supply (MS), liquid ratio (LR), and interest rate (INT). Economic growth was measured using the real gross domestic product (RGDP). Empirical result revealed a mixed relationship between monetary tools and economic growth. ED and MS were found to be positively and significantly related to economic growth. On the contrary, LR and interest rate were found to have an insignificant negative relationship with economic growth. Premise on findings, the study concluded that the relationship between monetary policy and economic growth depends on the particular instrument used at that period in time. Hence, the study recommended that monetary authority trap the disconnection between the formal and the informal credit sectors of economy. Due to the dualistic nature of Nigerian economy, the flow of credit and interest rate mechanism in the informal sector is not accounted for by the monetary authorities and this is most cases lead to counter effect to monetary policies in Nigeria.

Full-Text Access Notice

In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication. During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.

Request authorisation from the author