The effectiveness of monetary policy transmission in Nigeria: Evidence from the Monetary Policy Rate and the Cash Reserve Ratio

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Analysis using a structural VAR model shows that MPR and CRR influence output and credit in Nigeria, indicating potential policy implications.

Contractionary monetary policy using MPR and CRR contracts output and credit to the private sector, impacting inflation.
Monthly data from January 2006 to December 2023 reveals that MPR impulses influence short-term interest rates within 3 months.
The study identifies a price puzzle where inflation remains positive, especially more persistent in the MPR model.
Supportive measures may be needed to counteract inflationary trends stemming from current policy actions.

Nadani et al. (2025) studied this question.

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Analysis using a structural VAR model shows that MPR and CRR influence output and credit in Nigeria, indicating potential policy implications.