Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Nigerian Economic Growth and Monetary Policy Nexus

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

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 GrowthMonetary PolicyNigeriaARDL

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 in Finance, 2(24),110-120. DOI:10.14505/jasf. v12.2(24).03 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.

More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH

Effect of Monetary Policy on Profitability of Deposit Money Banks in Nigeria

Author: Stephanie Nguhemen Gbande, Mike T. Soomiyol, Timothy Tyona, Gaius Msendoo Asombo

Cognitive Diversity and Performance of Deposit Money Banks in Nigeria

Author: 1Nwangwu, Okwudiri Iheanyi, 2 Pepple, Grace Jamie PhD

Banking Innovations and Industrial Sector Performance in Nigeria: Evidence from ARDL Model

Author: Peter Ngbede Ajam, Abiodun Edward Adelegan, Benson Emmanuel

Environmental Sustainability and Entrepreneurial Performance in Nigeria: A Case Study of Enugu State

Author: i, Azolike Nkiru Nkechi, ii, Okwor Emmanuel Ejimnkonye, iii, Eneaniofu Daniel Mmaduakonam