Impact of Monetary Policy on Economic Diversification in Nigeria: Further Empirical Analysis

One of the key objectives government’s economic policy is prosperity and stability economy. It intends to achieve this by increasing economy’s competitiveness in global arena. However, besides macroeconomic policy, another determinant an extent its diversification, understood context mean degree which economy moves away from a dominant income-earning sector or product other ones. In view this, study examined impact monetary on diversification Nigeria using data for period 1991 2021 Autoregressive Distributed Lag (ARDL) bounds testing approach. The made use index as dependent variable, money supply, real exchange rate, gross fix capital formation, labour force ,as independent variables. Secondary time series were collected Central Bank Statistical Bulletin, National Bureau Statistics (various years/issues). Descriptive statistics multiple regression analysis based ARDL technique. Based results obtained, shows that capita formation affects positively while effective rate negatively. therefore recommends authorities should be encouraged increase supply has similar benefit private consumption. Furthermore, maintaining favourable external reserves pursued authorities.