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Abstract
The research examined how monetary policy impacts economic growth in Nigeria. It used the natural logarithm of GDP as the dependent variable and various monetary policy factors as explanatory variables. The data spans from 1981 to 2022 and employs Autoregressive Distributed Lag analysis, unit root tests, and co-integration tests. The results indicate a long-run relationship among the variables. Specifically, the study found that monetary policy rate, and Inflation have an insignificant positive influence on Nigeria's economic growth. Inflation insignificant negative impact, while the exchange rate has a significant negative effect on Nigeria's GDP. Overall, monetary policy accounts for 97% of the variations in economic growth in Nigeria. Consequently, the study recommends that monetary policy cannot effectively manage the Nigeria economy on its own, but can serve as a valuable tool for achieving price stability and enhancing economic output.
