Economic and Financial Review


Central Bank of Nigeria


Banks, Quantitative Easing, Central Banks and Policies, Monetary Systems, Financial Markets, Macroeconomy


The study examined the impact of the Central bank of Nigeria’s (CBN) balance sheet on the growth of private sector credit, economic growth and price stability during the period 2006-2017. Balance sheet indicators used were total assets of the CBN and proxy for asset distribution. Employing a vector autoregressive (VAR) model, the study found balance sheet policies to be effective in reducing cost of credit, increase in bank lending, economic activities and a decline in inflation. However, the effects favour asset dispersion (credit easing) against growth in assets (quantitative easing), implying that the Bank can, in the short- to medium-term, sustain its intervention programmes on the economy, but that the programmes, are more effective when the CBN acts as a banker’s bank.

Author Bio

The authors are staff of the Research Department, Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review





Recommended Citation

Kure, E. U.; Mbutor, O.O.; Rotimi, U.A.; Adamu, Y. (2019). The Central Bank Balance Sheet as a Tool for Monetary Policy: Evidence from Nigeria. CBN Economic and Financial Review. 57(2), 27-58.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.