Influence of Monetary Policy on Nigerian Economic Growth: A Comprehensive Study

This research investigated the influence of monetary policy on Nigerian economic growth within the period of 2000- 2023. To attain the objective of the study, multiple linear regression model was specified for study from data obtained through Central Bank of Nigeria (CBN) Statistical bulletin of 2023. The finding shows that money supply (t-stat 16.86 pvalue= 0.00 < 0.05) and exchange rate (t-stat = 2.25, p-value = 0.04 < 0.05) level of significant has positive significant influence on economic growth in Nigeria and inflation rate (t-stat = -3.67, p-value = 0.00 < 0.05) level of significant has negative influence on economic growth in Nigeria under the study period. But revealed that interest rate (t-stat = 1.26, pvalue = 0.22 > 0.05) and monetary policy rate (t-stat = -1.70, p-value = .0-11> 0.05) level of significant have an insignificant impact on economic growth positively and negatively. There was existence of a long run relationship between monetary policy and Nigerian economic growth at trace test Engen value and maximum Engen value. Inflation, monetary policy rate, and the exchange rate bi-directionally caused economic growth, while the money supply and interest rate unidirectional caused economic growth. The study recommended that maintaining strategic monetary expansion, closely observing the expansion of the money supply, and using monetary policy as a primary tool for economic growth were all advised.