ABSTRACT

The study examined the role of monetary policy in controlling inflation in Nigeria for the period of 1981-2014 using the Ordinary Least Squares Econometric Model. The empirical findings provide evidence that monetary policy proxied by the monetary policy rate (MPR) and money supply is not significant in controlling inflation in Nigeria which goes to suggest that inflation is no longer a monetary phenomenon in Nigeria. Thus, the study recommended that in order to control inflation and ensure price stability in Nigeria there is the need to consider the other non monetary factors that fuels inflation such as the cost and external factors so as to effectively tackle this macroeconomic problem in Nigeria.