MONETARY POLICY; IMPLICATION FOR INDUSTRIAL SECTOR
Abstract
This study examines the impact of monetary policy on industrial sector performance from 1990 to 2020. Research objectives are to examine the impact of money supply on industrial sector performance in Nigeria; to examine the impact of monetary policy rate on industrial sector performance in Nigeria; to determine the impact of liquidity ratio on industrial sector performance in Nigeria. The study used Auto Regressive Distributed Lag (ARDL) in analyzing the data gotten from CBN Statistical Bulletin of various issues. However, the findings showed that; Money supply (BMS) had a positive and significant impact on industrial sector performance in Nigeria; Monetary policy rate (MPR) had a positive and insignificant impact on industrial sector performance in Nigeria; Liquidity ratio (LQR) had a negative and significant impact on industrial sector performance in Nigeria; and Credit to private sector (CPS) had a negative and significant impact on industrial sector performance in Nigeria. This study therefore concludes that monetary policy has played a significant role in the performance of the Nigerian industrial sector it was recommended that, the Nigerian government should consider revising down her rediscount rate to allow for more robust impact on industrial output.
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