Monetary Policy and Economic Development in Nigeria

(2006-2015)

ADEMOLA EMMANUEL AKINYELE & RAJI, OLADEINDE AKEEM

Federal Polytechnic, Department of Accountancy, Ilaro, Ogun State

Federal Polytechnic, Department of Insurance, Ilaro, Ogun State

Email: demoladelord2003@yahoo.com & akeemraji02@yahoo.com

ABSTRACT

This study investigated the effect of the various monetary policies used by Nigeria government on the growth of Nigeria economy for the past ten years (2006-2015). The economy is a large component with a lot of diverse and sometimes complex part. This study will only focus on major growth compound such as the growth is domestic product, price level, exchange rate and balance of payment equilibrium.  This study makes use of economic approach in estimating the relationship between selected monetary policy and major growth component   gotten from the CBN statistical bulletin 2015. The Primary source of data use with a structured questionnaire was also administered to the staff of the central bank of Nigeria. The ordinary least square (OLS) technique was employed in obtaining the numerical estimate of the coefficient in different equation. The paper concludes among other that  Monetary policy is critical for economic development, when monetary policy is appropriate it helps, but when it is out of time it hurts the economy. The paper recommends that the central bank is to direct the banks and other financial institution to carry out certain duties in respect of the approved monetary policy.