The effect of the Central Bank of Nigeria policies in addressing the state of economy for economic growth in the last 6 years.
This report reviews the 4 findings of reports and research works done to reveal the effect of various monetary policies implemented by Central Bank of Nigeria to drive economic growth with GDP dataset.
The study conducted by proxied Money Supply (MS), Exchange Rate (ER), Interest Rate (IR), and Liquidity Ratio (LR) with the Economic Growth represented by Gross Domestic Product (income) at constant price. The measures of MS and ER had a positive but fairly insignificant impact on economic growth while IR and LR had a negative but highly significant impact on economic growth to support the assertion that monetary policies are better suited when they are used in targeting inflation rather than in stimulating growth. According to study which considered data obtained from the World Development Indicators (WDI) and the Central Bank of Nigeria Bulletin, it was revealed that money supply and government total expenditure and revenue has a significant impact on economic growth while the monetary policy has more effectiveness in stimulating economic growth in Nigeria. Monetary policy has long relationship with economic growth with effective control use in controlling Nigeria economy as obtained in the research by . It revealed a causal effect of the money supply and investment on the economic growth while economic growth causes interest rate in Nigeria. examined the efficiency of monetary policy in Nigeria using Data Envelopment Analysis (DEA) approach with Treasury bills and Treasury certificates as input variables while interest rate and monetary base were output variables. It showed that monetary policy has not been efficient requiring allowable adjustments for inclusive growth to be attained. A review of the economic growth of Nigeria in the last 10 years revealed a subsequent decline in the Gross Domestic Product (GDP) with the peak attained in 2014 at $547billion, according to the data extract of GDPs from .
1. Ayodeji, A. and Oluwole, A. (2018) Impact of Monetary Policy on Economic Growth in Nigeria. Open Access Library Journal, 5: e4320. https://doi.org/10.4236/oalib.1104320
2. Titiloye, Timothy and Ishola, Victor, Effect of Fiscal Policy and Monetary Policy on Economic Growth in Nigeria (1989-2018): A Time Series Analysis (June 6, 2020). Available at SSRN: or
3. Ufoeze, L. O., Odimgbe, S. O., Ezeabasili V. N., and Alajekwu, U. B. (2018) Effect of Monetary Policy on Economic Growth in Nigeria: An Empirical Investigation. Annals of Spiru Haret University Economic Series 18(1):123 DOI:10.26458/1815
4. Olusola, A. T and Oluwatobi, A. A. (2017) Monetary Policy Efficiency and Inclusive Growth in Nigeria: A Dea Approach. Acta Universitatis Danubius. Œconomica, Vol 13, No 6 (2017)
5. The World Bank: World Development Indicators- Economic Policy & Debt: National accounts: US$ at current prices: Aggregate indicators. https://datacatalog.worldbank.org/public-licenses#cc-by