Impact of Monetary Policy on Industrial Output a Case Study of Kaduna North Local Government, Nigeria.

ABSTRACT

Monetary policy is a crucial tool used by central banks to regulate economic stability, control inflation, and influence industrial growth. This study examines the impact of monetary policy on industrial output in Kaduna North, Nigeria, with a focus on key monetary instruments such as interest rates, money supply, inflation control, and exchange rate management. The research investigates how these factors affect industrial productivity, access to finance, and overall economic development in the region.

A causal-comparative research design was adopted, and data were collected through structured questionnaires administered to 50 respondents, including industrialists, business owners, and financial experts. Statistical tools such as frequency distributions, correlation analysis, and regression models were used to analyze the relationship between monetary policy and industrial output.

The findings indicate that monetary policy significantly influences industrial growth, with exchange rate fluctuations, high interest rates, and inflationary pressures identified as major challenges. While monetary policy has improved credit accessibility for industries, inconsistent policy implementation remains a barrier to sustainable growth.

The study concludes that stabilizing interest rates, managing inflation, and maintaining exchange rate stability are essential for enhancing industrial output. It recommends that the Central Bank of Nigeria (CBN) and policymakers improve policy consistency, enhance infrastructure, and ensure better communication with industrial stakeholders. This research contributes to the body of knowledge on economic policy and provides a foundation for future studies on industrial development in Nigeria.