THE IMPACT OF MONETARY POLICIES ON THE ECONOMIC GROWTH OF NIGERIA

Abstract

The possible use of the Central Bank of Nigeria's (CBN) monetary policies to foster economic growth is examined in this study, which spans the years 2000–2023. The main statistical tool of analysis for examining the impacts of the money supply, average price, interest rate, and labor force on the Gross Domestic Product was a multiple regression model. Studies reveal that the CBN Monetary Policy techniques are effective in managing monetary and real sector aggregates, such as wages, employment, output, and the pace of economic expansion. The money supply was statistically significant, and the interest rate was both statistically significant and negative, according to the study's empirical findings. Consequently, it is suggested that monetary policy by central banks could be a helpful tool for encouraging investment, reducing unemployment, lowering lending rates, and stabilizing Nigeria's economy.