Monetary Policy and Domestic Private Investment in Nigeria

This paper empirically examined the effect of monetary policy on domestic private investment in Nigeria from 1981 to 2018. In other achieve our objectives, annual time series data dependent variable – (DPI) and independent variables money supply (MS), government debt (GDD), savings (GDS), interest rate (INT) consumer price index (CPI) were collected secondary sources like CBN Statistical Bulletin WDI. Thereafter, analyzed using descriptive statistics econometrics technique Vector Error Correction Mechanism (ECM) method analysis. The results analysis indicated that a long run relationship exists among variables. Furthermore, revealed (GDS). have negative insignificant but is significant at 5%, while has positive within period. Based above findings, recommends as follows: Expansionary should be formulated will reduce rate, encourage borrowings savings. expand commercial banks credit granting financial institutions which real economy.