Impact Of Monetary Policy On Household Consumption Expenditures In Nigeria:- Ibekwe Sochima B

ABSTRACT iThe study was design to investigate the impact of monetary policy on household consumption expenditure in Nigeria covering the period of 1981 to 2018. The objectives ofthe study were to examine the impact ofmonetary policy on household consumption expenditure in Nigeria and to evaluate the long run relationship between monetary policy and house hold consumption expenditure in Nigeria. Ordinary Least Square (OLS) regression technique was employed in research, thus revealed that broad money supply has a positive and significant impact on private consumption expenditure in Nigeria whereas, interest rate and exchange rate has a negative relationship with private consumption expenditure in Nigeria. The former was insignificant while the later was significant. Base on the finding, the following recommendation were made; despite the significant impact ofmoney supply, the government shouldstill adopt monetarypolicy that will encourage increase in money supply in the economy in order to increase purchasing power of citizen in the country. There is an urgent needfor government to reduce interest rale. Thus, in a Long run increase will increase household consumption expenditure in Nigeria. There is also need to reduce exchange in order to attract moreforeign and local investment in the country which will increase the circulation ofmoney and also individual asses to money