UKWUOMA, UKWUOMA (2025) AN EXAMINATION ON THE EFFECTS OF MONETARY POLICY INSTRUMENTS ON MANUFACTURING SECTOR PERFORMANCE IN NIGERIA. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.
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Abstract
This empirical research assesses how Nigeria's monetary policy tools have influenced the performance of the manufacturing sector from 1980 to 2023. It examines four primary policy levers—Monetary Policy Rate (MPR), Treasury Bill Rate (TBR), Cash Reserve Ratio (CRR), and Money Supply (MS)—to see how they affect manufacturing output. Motivation stems from the sector’s ongoing underperformance, despite multiple interventions by the Central Bank of Nigeria. Secondary data were taken from the CBN Statistical Bulletin, and the analysis used Ordinary Least Squares (OLS) estimation, supported by unit root tests, cointegration analysis, and error correction modeling.Results indicate that increases in the MPR tend to reduce manufacturing output, though this relationship is not statistically significant—consistent with the theory that higher interest rates can deter investment ( seahipublications.org ). The TBR shows a positive but statistically insignificant effect, suggesting minimal influence on industry performance ( seahipublications.org ). Surprisingly, a higher CRR is linked to significantly stronger manufacturing output, possibly due to effective liquidity control by the authorities . Additionally, an expanded money supply correlates with significantly improved manufacturing performance, reflecting how liquidity boosts industrial activity ( journals.ezenwaohaetorc.org ).The study concludes that while some monetary tools like CRR and money supply effectively support manufacturing, others—such as MPR and TBR—have limited or misaligned effects. It recommends a carefully balanced use of policy instruments to avoid unintended investment suppression, advocating for a stable monetary climate and coordinated efforts between the CBN and fiscal policymakers to promote enduring industrial growth.
| Item Type: | Thesis (Other) |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | Uchenna Eneogwe |
| Date Deposited: | 16 Jun 2026 09:19 |
| Last Modified: | 16 Jun 2026 09:19 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/5821 |
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