Economic and Financial Review


Central Bank of Nigeria


Monetary Policy Transmission, Monetary Policy Transmission Mechanism, Monetary Policy Formulation, Monetary Policy Implementation, Interest Rate Channels, Exchange Rate Channel, Bank Lending Channel, Credit Channel


This article reviews the monetary policy transmission mechanism in Nigeria and the various challenges of the transmission process. Also, it highlights the need to continuously examine the channels of monetary policy in the economy to enhance policy design and implementation in Nigeria. The paper is divided into five parts. Following the introduction as part I, Part II, discusses conceptual issues of monetary policy transmission mechanism, while Part III gives country experiences. Part IV x-rays monetary policy transmission mechanism in Nigeria and lessons from international experiences while Part V contains the concluding remarks.

Author Bio

Ajayi is a Deputy Director and Head, Financial Analysis Division, Research and Statistics Department, Central Bank of Nigeria, Abuja.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Ajayi, M. (2007). Monetary Policy Transmission Mechanism in Nigeria. CBN Economic and Financial Review. 45(4), 39-67.

Included in

Economics Commons



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