The Impact of Monetary Policy on Nigeria’s Economic Growth: A Time Series Analysis (1995-2015).
Publication Date: 04/06/2025
Author(s): Ifeanyichukwu Nnamdi Nnaji.
Volume/Issue: Volume 8, Issue 2 (2025)
Page No: 56-58
Journal: International Journal of Entrepreneurship and Business Innovation (IJEBI)
Abstract:
This study investigates the impact of monetary policy on Nigeria's economic growth over the period 1995-2015. Using time series data sourced from the Central Bank of Nigeria, the study applies multiple regression analysis to examine the relationship between real GDP (as the proxy for economic growth) and key monetary policy variables: broad money supply (M2), exchange rate (EXR), and liquidity ratio (LR). Findings reveal that broad money supply and exchange rate significantly influence economic growth, while the liquidity ratio does not exhibit a meaningful impact. Based on these results, the study recommends that the Central Bank of Nigeria continue to fine-tune monetary instruments to create an enabling environment for both domestic and foreign investment, thereby stimulating sustainable economic growth. Keywords: Monetary Policy, Economic Growth, Nigeria, Broad Money Supply, Exchange Rate, Liquidity Ratio
Keywords:
Monetary Policy, Economic Growth, Nigeria, Broad Money Supply, Exchange Rate, Liquidity Ratio.
