Browsing by Author "Obiwumi Gboyega AKINWALE"

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    Monetary Policy, Energy Consumption and Economic Growth in Nigeria
    (Lead City University, Ibadan, 2024-12) Obiwumi Gboyega AKINWALE
    This study investigates the links among monetary policy, energy consumption, and economic growth in Nigeria from 1990 to 2022, employing both Autoregressive Distributed Lag (ARDL) and Toda-Yamamoto-Dolado-Lutkephol (TYDL) approaches. Using time- series data, the study examines the short- and long-run relationships between monetary policy variables (monetary policy rate, money supply, and liquidity ratio), renewable and non-renewable energy consumption, and GDP growth. The ARDL results reveal that monetary policy rate and money supply significantly impact short-run renewable energy consumption, while non-renewable energy consumption is positively influenced by monetary policy rate but negatively affected by liquidity ratio and money supply. In the long run, only liquidity ratio positively impacts renewable energy consumption. Regarding economic growth, the ARDL findings indicate a direct impact of monetary policy rate lags on short-run economic growth, with liquidity ratio positively influencing long-run economic growth. More so, renewable energy consumption at lag one positively influence economic growth in the short run. In the long run, both renewable and non-renewable energy consumption indirectly impact economic growth in Nigeria. The TYDL approach confirms Granger causality from economic growth to energy consumption, monetary policy rate and money supply in the short run. However, liquidity ratio granger causes GDP growth. Also, liquidity ratio granger causes renewable energy, non-renewable energy, and money supply. In the long run, renewable energy consumption, non-renewable energy consumption and liquidity ratio granger cause economic growth in Nigeria. Meanwhile, output growth granger causes monetary policy rate. A uni-directional relationshi exists from non-renewable consumption to monetary policy rate. There is need for government to consider implementing measures to incentivize investment in renewable energy projects to spur economic outputs. Also, to support short-run economic growth, policymakers should focus on enhancing the effectiveness of monetary policy transmission mechanisms. Keywords: Monetary policy rate, money supply, liquidity ratio, renewable energy, non renewable energy, GDP growth. Word Count: 285.