IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 9 NO. 3 2023
DOI: https://doi.org/10.56201/ijbfr.v9.no3.2023.pg154.171

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Nigerian Economic Growth and Monetary Policy Nexus

Ejem, Chukwu Agwu , Nwakodo, Ogechi Blessing , Effe-Nnamdi, Ann Chinenye

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Abstract

Due to the unresolved argument on the efficacy of monetary policy in the growth of an economy, this study is conceived examine whether monetary policy variables have predicted economic growth in Nigeria. To achieve this, data were obtained from Central Bank of Nigerian Statistical bulletin of 2022. The relationship between monetary policy variables and economic growth was estimated with Autoregressive Distributive Lags (ARDL). After the analysis, the outputs revealed that the entire monetary policy variables employed were found to have negative and significant relationship with economic growth in Nigeria within the scope of the study. On this note, the researchers are of the opinion that a flexible monetary policy by the monetary authority will help sustain price stability and economic growth in the country. Policy instruments should be well- coordinated and as well have an optimal mix to significantly influence economic growth and stability.

keywords:

Economic Growth, Monetary Policy, Nigeria, ARDL

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References:

Abdullahi, S. I., Shehu, K. K., Shuaibu, M., Saleh, S. G., & Usman, M. D. (2021). Monetary
Variables, Economic Growth and Monetary Policy in Nigeria, Journal of Advanced Studies
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Abeng, M. O. (2006). Financial sector reform outcomes in Nigeria. A quantitative evaluation. CBN
Bullion, 30(2), 53-69.

Adefeso, H. & Mobolaji, H. (2010). The fiscal-monetary policy and economic growth in Nigeria:
Further Empirical Evidence. Pakistan Journal of Social Sciences, 7(2).137-142.

Ajisafe, R. A. & Folorunso, B. (2002). The relative effectiveness of fiscal and monetary policy in
macroeconomic management in Nigeria. The African Economic and Business Review,
3(1): 23-40.

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