The Impact of Monetary Policy Transmission Channels on Debt Profile in Nigeria

Nyeche; Ezebunwo PhD; Wokekoro; Ozulem Elvis PhD; Ogbodo; Chukwuma Ogbonna

doi:10.56201/ijssmr.vol.11no12.2025.pg602.614

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The Impact of Monetary Policy Transmission Channels on Debt Profile in Nigeria

Nyeche, Ezebunwo PhD, Wokekoro, Ozulem Elvis PhD, Ogbodo, Chukwuma Ogbonna

Abstract

This study critically examines the impact of monetary policy transmission channels on debt profile in Nigeria, anchoring the analysis on the Keynesian theory of interest rate transmission and the credit channel approach developed in modern macroeconomic literature. The study used time series data covering the period of 32 years. The dependent variable was the debt profile while the independent variables were the MPR, CPS, MS, and EXR. The analysis was conducted using ARDL method of regression analysis. The study found that MPR, CPS, and MS has negative and significant relationship with the debt burden while the EXR has a positive and significant relationship with the debt burden over the period. The study concluded that despite extensive monetary interventions by the Central Bank of Nigeria , the Nigerian economy continues to face structural fragility and volatile growth patterns, including growing debt burden. The study recommended that the CBN must understand the holistic realities that make monetary policy channels affect debt burden and thus, use this to design future monetary policy mechanisms. Key words: debt burden, monetary policy rate, exchange rate, credit to private sector, money supply

Keywords

debt burdenmonetary policy rateexchange ratecredit to private sectormoney supply

References

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The Impact of Monetary Policy Transmission Channels on Debt Profile in Nigeria

Abstract

Keywords

References

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