Banking, Nigeria, Non-interest, Monetary policy, Murababah, Musharakah, Mudarabah


This article espouses the effectiveness of monetary policy in a dual economic framework (interest bearing/non-interest bearing). In other words it examines how the element non-interest banking when combined with interest bearing framework affect the effectiveness of monetary policy. The use of interest based instruments can effectively be combined with the identified non-interest interest instrument to conduct monetary policy. This article recommend that Nigeria should start thinking towards a policy that takes into account the monetary aggregate instruments as the main tool for executing monetary policy.

Author Bio

Adamu, Yusuf is a staff in Research Department of the Central Bank of Nigeria.

Publication Title

CBN Bullion


3 - 1


36 - 37



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