Effectiveness of Monetary Policy in Stimulating Economic Growth in Nigeria

Student: Fredrick Nworie Nwaji (Project, 2025)
Department of Accounting
University of Calabar, Calabar, Cross River State

Abstract

ABSTRACT
This study examines the impact of monetary policy on economic growth in Nigeria. Total population of ten (10) years monetary policy conduct by Central Bank of Nigeria (CBN) were involved in the study. The researcher used CBN bulletin and other relevant journals as the instrument for data collection. Descriptive and ex-post factor research design was adopted for the study. Secondary data were used, the data collected were presented in able and analyzed using simple percentages. The study shows that long-run relationship exists among the variables. Also, the core findings of this study shows that interest rate, reserve requirement ratio and exchange rate are significant monetary policy instruments that drive economic growth in Nigeria. It is therefore recommended that there is the need to put in place an enabling policy instruments and strategies in the likes of increasing available domestic credit through interest rate in order to encourage production. Similarly, that government should focus its efforts on advancing the growth of both the money and capital markets. This is because the monetary system’s efficiency requires well-developed money and capital market with a diverse variety of both short and long-term financing options. (Word count: 186)

Keywords
Inflation policy bank reserve rate development
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