Year: 2025
Type: article
Abstract: This study investigates the influence of selected monetary policy variables on Nigeria's economic performance over the period from 1981 to 2022. The monetary policy variables considered include money supply and interest rates, while economic performance indicators are represented by real GDP growth and price stability. Data analysis was conducted using the Ordinary Least Squares (OLS) technique. The findings indicate that money supply, interest rates, and government spending on education have a positive and statistically significant effect on real GDP growth. In contrast, the impact of population growth on real GDP growth was found to be statistically insignificant. Additionally, the analysis reveals that both money supply and government expenditure on education positively and significantly affect price levels. Conversely, interest rates were found to have a negative and significant effect on price levels, while population growth exhibited a negative but statistically insignificant effect on price levels. These results suggest that the central bank may consider tightening monetary policy by increasing interest rates, reducing money supply, or employing other strategies to manage inflationary pressures. Furthermore, policymakers are encouraged to prioritize policies that foster productivity growth, drive innovation, enhance education and skill development, and improve infrastructure and institutional quality.
Authors: Michael Amaegberi, Wisdom Krokeyi
Institution: Niger Delta University
Language: English
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4410402488