MONETARY POLICY AND PERFORMANCE OF SELECTED SECTORS OF NIGERIA ECONOMY

Abstract

This study examined the effect of monetary policy on selected sectors of Nigeria economy (2000-2021) using secondary data from Statistical bulletin of Central Bank of Nigeria. The research work selected Nigeria as its sample and used the ARDL Auto-regressive Distributed lag models to test the effect of the independent variables (Cash Reserve Ratio, Monetary Policy Rate and Liquidity Ratio) on the dependent variable (Nigeria manufacturing sector, Nigeria Agricultural sector and Banking sector).The study found that monetary policy has insignificant effect on manufacturing and agricultural sector but significant effect on banking sector in Nigeria. The study therefore recommends among others the need to improve communication channels between the central bank and stakeholders in the manufacturing, agriculture, and banking sectors. Tailor monetary policy instruments to address specific challenges faced by each sector. Adopt a flexible monetary policy framework that recognizes the unique needs and characteristics of each sector. Coordinate monetary policy with fiscal policy to ensure a comprehensive and synergistic approach.