ANALYZING THE ROLE OF MONEY MARKET INSTRUMENTS IN SHAPING NIGERIA'S ECONOMIC DEVELOPMENT
Abstract
This empirical work was conducted to determine the extent to which the money market influences the development of the Nigerian economy, covering the period from 1986 to 2019. The impact of Treasury bills, commercial paper, certificates of deposit, and banker’s acceptances issued within this timeframe was evaluated in relation to economic development in Nigeria. The study relied on secondary data, which underwent preliminary testing for multicollinearity to ensure the stability of the variables and the model. Data analysis was conducted using the OLS technique. The results revealed that commercial paper, Treasury bills, and certificates of deposit significantly influenced Nigeria’s economic development, while banker’s acceptances had a negative but insignificant impact. It was recommended that banker’s acceptances as a money market instrument should be strengthened to contribute positively to economic growth. Financial regulators should implement policies to enhance stakeholders’ understanding of money market operations and to prevent malpractices.