The Effect of Monetary Policy on Economic Development in Nigeria

Paul Atanda Orebiyi, Edidiong Prince Ekot, Etim Essien Bassey and Christiana Uduak Ekong
Additional contact information
Paul Atanda Orebiyi: Department of Economics, University of Uyo, Uyo, Nigeria
Edidiong Prince Ekot: Department of Economics, University of Uyo, Uyo, Nigeria
Etim Essien Bassey: Department of Economics, University of Calabar
Christiana Uduak Ekong: Department of Economics, University of Uyo, Uyo, Nigeria

East African Finance Journal, 2025, vol. 4, issue 3

Abstract: The Human Development Index was used as a proxy for development outcomes in examining the effect of monetary policy on economic development in Nigeria. Annual time series data spanning 1980 to 2023 were analyzed using the Fully Modified Ordinary Least Squares technique to assess long-run relationships. Findings reveal that money supply has a statistically significant and positive effect on human development at the 5% significance level, suggesting that well-managed monetary expansion can support development goals. The study recommends that the Central Bank of Nigeria adopt controlled money supply growth policies and review government expenditure to enhance welfare and support disadvantaged groups.

Keywords: Monetary policy; Money supply; Human Development Index; Economic development (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ijcsacademia.com/index.php/eafj/article/view/295

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwk:eafjke:2025-25

DOI: 10.59413/eafj/v4.i3.5

Access Statistics for this article

More articles in East African Finance Journal from East African Finance Journal
Bibliographic data for series maintained by Dr. Charles G. Kamau ().