IMPLICATIONS OF DIVERSE RATE ON ECONOMIC GROWTH IN NIGERIA
IMPLICATIONS OF DIVERSE RATE ON ECONOMIC GROWTH IN NIGERIA

Summary/Abstract: The study contributes to the discourse on the effectiveness of diverse rates in driving economic growth. The specific rates considered were treasury bill rate (TREBR); savings rate (SAVR); and minimum rediscount rate (MINR) while gross domestic product (GDP) was the dependent variable. The ex post facto research design was used. The published annual reports and accounts of the Central Bank of Nigeria Statistical Bulletin for the financial period of (21years) spanning from 2003 through 2023 were used to measure the variables. The different estimations used for the study are descriptive statistics, correlation analysis and multicollinearity. At the same time, ordinary least square was used to test the effect of the independent variables. The results show that treasury bill rate (TREBR) and minimum rediscount rate (MINR) indicate weak and statistically insignificant relationships with GDP. Also, the study reveals a significant negative relationship between the Savings Rate (SAVR) and gross domestic product (GDP) in the period analyzed. Policymakers should focus on improving the efficiency of financial intermediation processes to ensure that savings are channeled effectively and explore alternative monetary policy tools or combine existing tools with fiscal policy measures to stimulate economic growth.

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