An Evaluation of Monetary Policy and Its Implications for Nigerian Economic Growth

This study dealt with the evaluation of monetary policy and its effects on economic growth in Nigeria from the period (1995-2021). The Nigerian government has adopted various monetary policies through Central Bank of Nigeria over years to achieve economic growth. The study made used of secondary data involving time series. The technique of analysis used for the estimation is the Granger Causality and the Autoregressive Distributed Lag Model (ARDL). The regression results show that shows that a negative and an insignificant relationship existed between MS and economic growth in Nigeria. Its shows that a unit change in MS will lead to 825% decrease in economic growth in Nigeria at 5%. It further indicates that there exist a positive and a significant relationship between Monetary Policy and economic growth in Nigeria and that the overall significance is measured by the value of the probability F-statistic which is 0.000000 and is less than 0.05 significant levels. The study conclude that Monetary Policy can only contribute to growth significantly when properly manages by the monetary authority and that the central bank must make sure that its blocked all the channel of hoarding of the naira note by the public through the design of new naira note from time to time. This study recommends among other things that Government through the CBN should regulate the economy using monetary instrument such as open market operation, Suitable bank reserved requirement etc. when there is inflation to reduce it, so as to ensure stable economic growth.