ABSTRACT

This study has attempted to investigate the impact of monetary policy on nominal economic growth in Nigeria using the dummy variable technique to enquire if there is any difference between the conduct of monetary policy during military and civilian government in Nigeria covering a period of 45 years (1970-2014). It was discovered that for the period under study monetary policy had a significant impact on economic growth in Nigeria, with money supply playing an active role and main instrument of the central bank in pursuing its monetary objectives, also the dummy variable analysis revealed that there exist a statistically significant difference between monetary policy performance in explaining economic activates during the military government and the civilian government. It was recommended that the financial system in Nigeria should be improved upon and standard should be made equal to more advanced countries as stable and sound financial system is the heartbeat of monetary policy conduct and proper effective implementation of monetary policy.