AN EMPIRICAL ANALYSIS OF MONETARY POLICY INSTRUMENTS AND ITS EFFECT ON INDUSTRIAL OUTPUT IN NIGERIA

WILLIAMS, GLADYS CHINELO (2025) AN EMPIRICAL ANALYSIS OF MONETARY POLICY INSTRUMENTS AND ITS EFFECT ON INDUSTRIAL OUTPUT IN NIGERIA. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

[img] Text
REPO266.docx
Download (149kB)

Abstract

This study investigates the effect of monetary policy on industrial sector output in Nigeria, with a focus on the role of key monetary instruments. The specific objectives were to: (i) examine the effect of the Monetary Policy Rate (MPR) on industrial sector output; (ii) evaluate the impact of the Treasury Bill Rate (TBR); (iii) ascertain the influence of the Cash Reserve Ratio (CRR); and (iv assess how the broad money supply (MS) relative to GDP affects industrial performance. The study employed the Ordinary Least Squares (OLS) estimation technique alongside residual- based and parameter stability tests, using annual time-series data for the period under review. Findings revealed that MPR, TBR, and CRR each exerted insignificant effects on industrial sector output, with p-values of 0.91, 0.052, and 0.488 respectively, indicating weak or no statistical influence. In contrast, broad money supply (p-value = 0.046) demonstrated a positive and statistically significant relationship with industrial output, underscoring the importance of liquidity expansion in stimulating industrial growth. These results imply that while rate-based monetary tools remain ineffective in driving industrial performance, policies that enhance money circulation and credit availability have a stronger impact. The study recommends that the Central Bank of Nigeria (CBN) strengthen the monetary transmission mechanism, restructure the treasury bill market, adopt a flexible reserve policy, and sustain liquidity-oriented interventions to support productive investment. Overall, the findings highlight the need for a balanced, growth-driven monetary framework that promotes credit access, industrial competitiveness, and sustainable economic development in Nigeria.

Item Type: Thesis (Other)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: Uchenna Eneogwe
Date Deposited: 15 Jun 2026 13:59
Last Modified: 15 Jun 2026 13:59
URI: http://eprints.gouni.edu.ng/id/eprint/5807

Actions (login required)

View Item View Item
GOUNI Repository is powered by EPrints 3 which is developed by the School of Electronics and Computer Science at the University of Southampton. More information and software credits.