IMPACT OF MONETARY POLICY ON FISHERY FOR ECONOMIC GROWTH OF NIGERIA

^*Ogunbadejo Hussain K. and Oladipo Agnes E.

Nigerian Institute for Oceanography and Marine Research, Victoria Island, Lagos, Nigeria.

Accepted November 28, 2016

This study examined the impact of monetary policy on fishery growth in Nigeria economy. It adopted the error correction model (ECM) techniques to analyze the times series data. The result of the ECM confirms the existence of long-run equilibrium between the dependent and independent variables. Available information reveals policy instability and duplication of programs and projects under different policies. Analysis also shows fluctuation of fishery output over the years. The Augmented-Dickey Filler (ADF) test indicates stationarity one-difference lagged length, except inflation rate. The study shows that long run relationship exists among the variables. The core finding of this study shows that money supply and interest rate are significant monetary policy instruments that drive the growth in Nigeria. It is consequently recommended that the Central Bank of Nigeria (CBN) should introduce more monetary instruments that are flexible enough to meet the ever-growing financial sector in order to attract both domestic and foreign investors; while more stringent punishment should be made for non-compliance to the monetary policies by financial institutions.

Key words: Economic growth, Error correction model, Co- integration.

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