Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Regulating Gross Domestic Product and Balance of Payment in Nigeria Through Monetary Policy
Charles Chinonso EdehEdeh, Ebele Stella Nwokoye, Lucky Ifeanyichukwu Amabuike, Monday Clement Ahiaba
24 March 2026 · Vol. 2, Issue 3, pp. 171-184
DOI: 10.65150/EP-jefrr/V2E3/2026-04
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What is this article about?
This study examines the relevance of monetary policy instruments on macroeconomic goals in Nigeria with yearly time series data gathered between 1985 and 2023. The data are sourced from CBN (2024), NBS (2023) and WDI (2021).
Article at a glance
- Published
- 24 March 2026
- Volume / issue / pages
- Vol. 2, Issue 3, pp. 171-184
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
This study examines the relevance of monetary policy instruments on macroeconomic goals in Nigeria with yearly time series data gathered between 1985 and 2023. The data are sourced from CBN (2024), NBS (2023) and WDI (2021). The unit root test confirmed a mix integrated results of order 1(0) and 1(1) while the bound test of co-integration revealed that all the models have long run association. The Autoregressive Distributed Lag (ARDL) techniques were employed for the empirical analysis and the empirical results confirmed that from the real gross domestic product (RGDP) model, interest rate and money supply (MS) positively impacted gross domestic product. The balance of payment model revealed that interest rate and money supply have significant impact on Nigerian balance of payment. From the foregoing, the findings call for policies such as expand financial inclusion and credit facilities for productive sectors such as manufacturing, agriculture, and technology to boost domestic investment. Secondly reduce dependence on oil revenues by promoting industrialization, renewable energy, and non-oil exports to safeguard the economy from oil price volatility. Thirdly ensure moderate interest and inflation rates through sound monetary policies that balance inflation control with investment promotion. Also stabilize the exchange rate through stronger foreign reserves and export diversification, while managing liquidity via effective CRR and open market operations. Lastly pursue export-led growth, infrastructure development, and coordinated fiscal–monetary policies to improve the balance of payments and sustain external stability.
Keywords: Monetary Policy, Real Gross Domestic Product (RGDP), Balance of Payments (BoP), ARDL Approach, Economic Growth, Interest Rate, Nigeria
Cite this article
Charles Chinonso EdehEdeh, Ebele Stella Nwokoye, Lucky Ifeanyichukwu Amabuike, & Monday Clement Ahiaba (2026). Regulating Gross Domestic Product and Balance of Payment in Nigeria Through Monetary Policy. Journal of Economic, Finance Research and Review, 2(3), 171-184. https://doi.org/10.65150/EP-jefrr/V2E3/2026-04
@article{Charles2026,
title = {Regulating Gross Domestic Product and Balance of Payment in Nigeria Through Monetary Policy},
author = {Charles Chinonso EdehEdeh and Ebele Stella Nwokoye and Lucky Ifeanyichukwu Amabuike and Monday Clement Ahiaba},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {3},
pages = {171-184},
doi = {10.65150/EP-jefrr/V2E3/2026-04},
url = {https://doi.org/10.65150/EP-jefrr/V2E3/2026-04}
}Questions about this article
Who wrote this article?
Charles Chinonso EdehEdeh, Ebele Stella Nwokoye, Lucky Ifeanyichukwu Amabuike, Monday Clement Ahiaba.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 3, pages 171-184, published by EP Journals Group on 24 March 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E3/2026-04 (https://doi.org/10.65150/EP-jefrr/V2E3/2026-04).
How do I cite this article?
APA: Charles Chinonso EdehEdeh, Ebele Stella Nwokoye, Lucky Ifeanyichukwu Amabuike, & Monday Clement Ahiaba (2026). Regulating Gross Domestic Product and Balance of Payment in Nigeria Through Monetary Policy. Journal of Economic, Finance Research and Review, 2(3), 171-184. https://doi.org/10.65150/EP-jefrr/V2E3/2026-04
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