MONEY MARKET DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

In  this  study,  the  link  between  Nigeria's   economic  growth   and  money  market   development  was examined. The variables used as stand-ins for money market development were total value of treasury bills issued (TRB), total value of certificates of deposit issued (COD), total value of commercial papers issued (COP) and total value of bankers’ acceptance issued (BAC). The real GDP served as a proxy for economic. The  ARDL  model,  which  was  intended  to  examine  the  influence  of  money  market development variables on economic growth, was  specified using the Autoregressive Distributed Lag (ARDL) approach using annual data from 1981 to 2024.    The E-view 9.0 econometric analysis software was utilized for the analysis. The results show that while certificate of deposit (COD), commercial paper (COP) and bankers acceptance (BAC) exerts significant impact on  economic growth (RGDP) either in the short or long run; treasury bill (TRB) has no significant effect on economic growth in Nigeria in the short or long run. Furthermore, the two years lag monetary policy rate (MPR(-2), which is the control variable significantly reduce economic growth in the short run.     According  to  the  study's  findings, we find partial evidence that money market development influences Nigeria's economic growth, as two (2) out of the four (4) proxies show a significant positive long-run effect on economic growth. The study recommends measures to improve and strengthen the money market instruments in order to boost economic growth in Nigeria. Also, policies measures by the monetary authority (CBN) to promote market integrity and soundness which will enable the money market to continue to stimulate economic growth in Nigeria were recommended.