MONEY MARKET OPERATIONS AND NIGERIA’S ECONOMIC GROWTH: 2005-2023
Abstract
ABSTRACT
This study examines the effect of money market activities on the Nigerian economy. The
objectives of the study is to: examine the effect of treasury bills on Nigeria’s economic growth,
determine the effect of commercial papers on Nigeria’s economic growth, ascertain the effect of
bankers’ acceptance on Nigeria’s economic growth, determine the effect of repurchase
agreement on Nigeria’s economic growth, and to determine the effect of money supply on
Nigeria’s economic growth. The study was anchored on the financial intermediation theory,
propounded by Gurley and Shaw in 1960. The study employs ex-post facto research design,
using secondary data obtained from CBN statistical bulletin and Nigeria Bureau Statistic
database for the period 2005–2023. Unit root test and least square regression analysis were used
to analyse the data. The findings of the study revealed that 1. Treasury bills had a positive
insignificant effect on Nigerian economic growth; Commercial papers had a positive
insignificant effect on Nigerian economic growth; Bankers’ acceptance had a positive
insignificant effect on Nigerian economic growth; Open Market Operations had a negative
insignificant effect on Nigerian economic growth; Repurchase Agreements had a positive
significant effect on Nigerian economic growth; Money supply has a negative significant effect
on Nigerian economic growth. The study recommend that The Nigerian government should
improve market liquidity and encourage broader participation by simplifying the investment
process for both institutional and retail investors, as well as ensuring competitive returns. Also,
Policymakers should implement measures to carefully control money supply, ensuring that it
aligns with productive investments and economic activities such as tightening credit controls,
focusing on channeling money supply towards productive sectors of the economy, and
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.