Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria

Azeez Adebanjo Wahab; Michael Olajide Adelowotan

doi:10.1007/978-3-031-84885-8_9

Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria

Azeez Adebanjo Wahab
, Michael Olajide Adelowotan

Accountancy

Federal College of Education (Technical) Akoka

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

The study examines the interplay between money supply, exchange rate, and economic growth in Nigeria over a period of 20 years. It sought to evaluate the extent to which the money supply affects gross domestic product and also, to find out the effect of exchange rate on gross domestic product in Nigeria. To achieve these objectives, a model was formulated, and an Autoregressive Distributed Lag (ARDL) Cointegration Technique was used as a method of analysis. The variables used in the study were further subjected to Bounds test and other econometric tests. The data were cointegrated at order 1(1) and order 1(0). The long-run relationship of the underlying variables is detected through the F-statistic (Wald test). The study revealed that exchange rate has positive and significant influence on the economic growth in Nigeria measured with LGDP. The result was not consistent with the negative a priori expectation. Also, the result obtained shows that the relationship between money supply and gross domestic product in Nigeria is positive but insignificant. The study, therefore, recommends that regulators should hand down regulations that control the supplies of money in the circulation and that government should put on policy implementation that will ensure the stability of naira value.

Original language	English
Title of host publication	Impacting Society Positively Through Technology in Accounting and Business Processes - Proceedings of the 5th International Conference of Accounting and Business, iCAB 2024
Editors	Tankiso Moloi
Publisher	Springer Nature
Pages	183-201
Number of pages	19
ISBN (Print)	9783031848841
DOIs	https://doi.org/10.1007/978-3-031-84885-8_9
Publication status	Published - 2025
Event	5th International Conference of Accounting and Business, iCAB 2024 - Sun City, South Africa Duration: 27 Jun 2024 → 28 Jun 2024

Publication series

Name	Springer Proceedings in Business and Economics
ISSN (Print)	2198-7246
ISSN (Electronic)	2198-7254

Conference

Conference	5th International Conference of Accounting and Business, iCAB 2024
Country/Territory	South Africa
City	Sun City
Period	27/06/24 → 28/06/24

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

ARDL
Economic growth
Exchange rate
Gross domestic product
Money supply
Time series

ASJC Scopus subject areas

General Business,Management and Accounting
General Economics,Econometrics and Finance

Access to Document

10.1007/978-3-031-84885-8_9

Cite this

Wahab, A. A., & Adelowotan, M. O. (2025). Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria. In T. Moloi (Ed.), Impacting Society Positively Through Technology in Accounting and Business Processes - Proceedings of the 5th International Conference of Accounting and Business, iCAB 2024 (pp. 183-201). (Springer Proceedings in Business and Economics). Springer Nature. https://doi.org/10.1007/978-3-031-84885-8_9

Wahab, Azeez Adebanjo ; Adelowotan, Michael Olajide. / Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria. Impacting Society Positively Through Technology in Accounting and Business Processes - Proceedings of the 5th International Conference of Accounting and Business, iCAB 2024. editor / Tankiso Moloi. Springer Nature, 2025. pp. 183-201 (Springer Proceedings in Business and Economics).

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abstract = "The study examines the interplay between money supply, exchange rate, and economic growth in Nigeria over a period of 20 years. It sought to evaluate the extent to which the money supply affects gross domestic product and also, to find out the effect of exchange rate on gross domestic product in Nigeria. To achieve these objectives, a model was formulated, and an Autoregressive Distributed Lag (ARDL) Cointegration Technique was used as a method of analysis. The variables used in the study were further subjected to Bounds test and other econometric tests. The data were cointegrated at order 1(1) and order 1(0). The long-run relationship of the underlying variables is detected through the F-statistic (Wald test). The study revealed that exchange rate has positive and significant influence on the economic growth in Nigeria measured with LGDP. The result was not consistent with the negative a priori expectation. Also, the result obtained shows that the relationship between money supply and gross domestic product in Nigeria is positive but insignificant. The study, therefore, recommends that regulators should hand down regulations that control the supplies of money in the circulation and that government should put on policy implementation that will ensure the stability of naira value.",

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Wahab, AA & Adelowotan, MO 2025, Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria. in T Moloi (ed.), Impacting Society Positively Through Technology in Accounting and Business Processes - Proceedings of the 5th International Conference of Accounting and Business, iCAB 2024. Springer Proceedings in Business and Economics, Springer Nature, pp. 183-201, 5th International Conference of Accounting and Business, iCAB 2024, Sun City, South Africa, 27/06/24. https://doi.org/10.1007/978-3-031-84885-8_9

Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria. / Wahab, Azeez Adebanjo; Adelowotan, Michael Olajide.
Impacting Society Positively Through Technology in Accounting and Business Processes - Proceedings of the 5th International Conference of Accounting and Business, iCAB 2024. ed. / Tankiso Moloi. Springer Nature, 2025. p. 183-201 (Springer Proceedings in Business and Economics).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AU - Adelowotan, Michael Olajide

N1 - Publisher Copyright: © The Author(s), under exclusive license to Springer Nature Switzerland AG 2025.

PY - 2025

Y1 - 2025

N2 - The study examines the interplay between money supply, exchange rate, and economic growth in Nigeria over a period of 20 years. It sought to evaluate the extent to which the money supply affects gross domestic product and also, to find out the effect of exchange rate on gross domestic product in Nigeria. To achieve these objectives, a model was formulated, and an Autoregressive Distributed Lag (ARDL) Cointegration Technique was used as a method of analysis. The variables used in the study were further subjected to Bounds test and other econometric tests. The data were cointegrated at order 1(1) and order 1(0). The long-run relationship of the underlying variables is detected through the F-statistic (Wald test). The study revealed that exchange rate has positive and significant influence on the economic growth in Nigeria measured with LGDP. The result was not consistent with the negative a priori expectation. Also, the result obtained shows that the relationship between money supply and gross domestic product in Nigeria is positive but insignificant. The study, therefore, recommends that regulators should hand down regulations that control the supplies of money in the circulation and that government should put on policy implementation that will ensure the stability of naira value.

AB - The study examines the interplay between money supply, exchange rate, and economic growth in Nigeria over a period of 20 years. It sought to evaluate the extent to which the money supply affects gross domestic product and also, to find out the effect of exchange rate on gross domestic product in Nigeria. To achieve these objectives, a model was formulated, and an Autoregressive Distributed Lag (ARDL) Cointegration Technique was used as a method of analysis. The variables used in the study were further subjected to Bounds test and other econometric tests. The data were cointegrated at order 1(1) and order 1(0). The long-run relationship of the underlying variables is detected through the F-statistic (Wald test). The study revealed that exchange rate has positive and significant influence on the economic growth in Nigeria measured with LGDP. The result was not consistent with the negative a priori expectation. Also, the result obtained shows that the relationship between money supply and gross domestic product in Nigeria is positive but insignificant. The study, therefore, recommends that regulators should hand down regulations that control the supplies of money in the circulation and that government should put on policy implementation that will ensure the stability of naira value.

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KW - Exchange rate

KW - Gross domestic product

KW - Money supply

KW - Time series

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A2 - Moloi, Tankiso

PB - Springer Nature

T2 - 5th International Conference of Accounting and Business, iCAB 2024

Y2 - 27 June 2024 through 28 June 2024

ER -

Wahab AA, Adelowotan MO. Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria. In Moloi T, editor, Impacting Society Positively Through Technology in Accounting and Business Processes - Proceedings of the 5th International Conference of Accounting and Business, iCAB 2024. Springer Nature. 2025. p. 183-201. (Springer Proceedings in Business and Economics). doi: 10.1007/978-3-031-84885-8_9

Impact of Money Supply and Exchange Rate on Economic Growth in Nigeria

Abstract

Publication series

Conference

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this