INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY STUDIES (IJMS)
MONETARY POLICY AND STOCK MARKET PERFORMANCE IN NIGERIA
E-ISSN: 3349-4132
P-ISSN: 3349-5939
DOI: https://iigdpublishers.com/article/1544
This study examined the link between monetary policy and stock market performance in Nigeria from 1980 to 2025. The variables used are All Share Index (proxy for stock market performance), credit reserve ratio, liquidity ratio, monetary policy rate, open market operation and Treasury bill rate. The data were sourced from the Central Bank of Nigeria (CBN) satistical bulletin. The study employed the Ordinary Least Square (OLS) and the R2 result is 58.88198 or 57 % in absolute term. The DW statistics indicates that the findings could be used for policy formulation given the value of 1.606274 which is close to 2. The study concludes that monetary policy can highly determine the impact on stock market performance suggesting that monetary policy can be used to control stock market activities in Nigeria. Consequently monetary policy is the very tool for managing capital market activities and the performance in Nigeria. The study recommends the development of stock market in Nigeria needs trained professionals who understand the workings of monetary policy on stock market activities.
Wosu Chidi PhD & Suotor Memoye PhD
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