Central Bank of Nigeria Monetary Policy Outcomes and Financing of Small and Medium Scale Enterprises in Nigeria
The study examined the Central Bank of Nigeria Monetary Policy Outcomes and Financing of Small and Medium Scale Enterprises in Nigeria for period 2004 to 2023. The specific objectives of the study were to examine how exchange rate, interest rate and money supply impact on the financing of SMEs in Nigeria for a 20-year period (2004 to 2023). Secondary data for the study was collected from the Central Bank of Nigeria Statistical Bulletin for the twenty-year period. for the independent variables (exchange rate, interest rate and money supply), dependent variable (SME Fund) and control variable (inflation rate). The analysis was carried out using descriptive statistics and inferential statistics. The finding of the result revealed that exchange rate has negative and insignificant impact on the financing of Small and Medium Scale Enterprises in Nigeria, interest rate exerts a positive significant impact on Financing of Small and Medium Scale Enterprises in Nigeria while money Supply exert a positive significant impact on Financing of Small and Medium Scale Enterprises in Nigeria. Based on the analysis, the study recommends that CBN should continue to regulate exchange rate to attract more foreign funds so as to increase lending to SMEs under more favourable terms (moratorium, interest rate, tenor etc.). Also, a suitable and well-balanced monetary policy broad money supply tool should be implemented to boost funding of small and medium scale enterprises in Nigeria.
Keywords: Central Bank of Nigeria, Monetary Policy, Exchange Rate, Interest Rate, Small and Medium Scale Enterprises
Citation: Aigbe, A.S., Osemwegie–ero, J.O., & Oziegbe, D.J. (2025). Central Bank of Nigeria Monetary Policy Outcomes and Financing of Small and Medium Scale Enterprises in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 10(1), 140-150.