Economic and Financial Review


Central Bank of Nigeria.


Monetary policy, Agriculture, Nigeria


The study examinee the effect of monetary policy on agricultural sector in Nigeria, utilizing time series data for the periods spanning from 1970 to 2010. The study captures both monetary and non-monetary policy variables such as lending rate, commercial banks credit to agriculture, exchange rate, government expenditure in agriculture and inflation rate in examining the effect of monetary policy on agricultural output. The methodology adopted is the Auto- Regressive Distributed Lag (ARDL) Bound Testing Approach. The results obtained shows that exchange rate and government expenditure had positive and significant effect on agricultural output and, hence agricultural sector in Nigeria. It is recommended that a sound exchange rate policy should be implemented aimed at boosting agricultural exports in Nigeria. Also, government investment to provide the basic infrastructure and institutions should be sustained because without the appropriate institutions, monetary policy cannot impact positively on real sector.

Author Bio

Udeaja, E. A. Ph.D. is a Principal Economist in the Monetary Policy Department, Central Bank of Nigeria while E. A. Udoh Ph.D. is a Senior Lecturer in the Department of Economics, University of Calabar.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Udeaja, E. A., & Udoh, E.A. (2014). Effect of monetary policy on agricultural sector in Nigeria. CBN Economic and Financial Review, 52(2), 33-74.



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