International Journal of Economics, Business and Management Studies

Volume 7, Number 1 (2020) pp 119-131 doi 10.20448/802.71.119.131 | Research Articles


Regulated Interest Rate, Deregulated Interest Rate and Economic Growth in Nigeria: A Dissaggregated Analysis

Uduakobong S. Inam 1 ,

Ekong E. Etim 1 

1 Department of Economics, Faculty of Social Sciences University of Uyo, Uyo, Akwa Ibom State, Nigeria.


This study investigates the effect of interest rate on economic growth in Nigeria using annual data spanning the period of 1970–2016. Specifically, the study analyzes the effect of regulated and deregulated interest rates on economic growth in Nigeria. The study employs Ordinary Least Square (OLS) techniques to achieve the objectives. The regression models employed for analysis are specified and categorized to capture: the regulated interest rate regime (1970 – 1986); the deregulated interest rate regime (1987 – 2016) and the full period of study (1970 – 2016).The study reveals that: there is a negative and significant relationship between regulated interest rate and economic growth in Nigeria; there is a negative and significant relationship between deregulated interest rate and economic growth in Nigeria; there is a negative and significant relationship between interest rate and economic growth in Nigeria. The policy implications are easily discernible: high interest rate is detrimental to economic growth in Nigeria; interest rate can be used as a policy variable by the monetary authorities to control the flow of credit and also influence economic growth in Nigeria. Therefore, irrespective of the kind of regime, the management of the interest rate in Nigeria calls for high level discretion on the part of monetary authorities if macroeconomic goals are to be achieved. Thus, the study recommends that: interest rate should be closely monitored, stabilized and effectively managed. Monetary authorities should endeavour to maintain the interest rate at a single digit and at minimal levels to encourage investment and foster output growth.


Deregulated interest rate Economic growth Nigeria.


Related Articles

  1. Regulated Interest Rate, Deregulated Interest Rate and Economic Growth in Nigeria: A Dissaggregated Analysis
  2. Change, Customer Satisfaction and Competition: Issues from the Strategic Management Context
  3. The Effective Strategies in Companies’ Performance Using the Partial Least Squares Approach
  4. The Empirical Analysis of Relationship between Exchange Rate Volatility and Stock Prices Volatility, the Combination of Garch and Ardl Models
  5. The Management Strategies of Ecotourism Development in Papua New Guinea
  6. Training as Strategic Instrument for Human Resource Development: A Case of Pakistan
  7. Human Capital Flight in Pakistan: Strategies for Coping Brain Drain Situation
  8. Corporate Governance and Firm Performance of Private Family Businesses in South Eastern Nigeria
  9. Strategic Management in the Zakat Growth Acceleration Framework in Indonesia
  10. Strategy for Increasing Banking Profitability Listed in Indonesia Stock Exchange
  11. Corporate Social Responsibility: A Case for the Igbo Trade Apprenticeship System (ITAS) as a Sustainable Model of a Startup Incubator for Social Entrepreneurship in Nigeria, Africa
  12. Reformulation of Regional Autonomy Strategy for Tourism Development in Indonesia
  13. Factors Affecting the Effectiveness of Assurance Services and Corporate Reporting
  14. Agency Cost of Equity and Growth Rate in Relation to Returns on Capital Employed and High and Low Leveraged Firms in Nigeria
  15. Assessment of the Role of Private Enterprises /Small Businesses on Economic Growth (A Study of Some Selected SME’S in Imo State, Nigeria)
  16. The Expansion of the Contemporary Economic Role of Crete throughout its Extensive History
  17. Improving Economic Benefits through Coal Products Optimization in a Given Group
  18. A Neoclassical Approach to Behavioral Economics
  19. Analyzing the Northern Key Economic Region of Vietnam and Rest of Vietnam Based on Interregional Input - Output Model
  20. Does the Oil Revenues Affect the Macro Economic Variables Performance in Africa ? A Panel Data Analysis
  21. The Nexus between Oil and Non-Oil Revenue on Economic Development in Nigeria
  22. The Role of Telecommunications Services in Regional Economic Growth: Evidence from ECOWAS Zone
  23. The Effect of Macroeconomic Factors on the Detection Value of the Firm: An Application in Istanbul Stock Exchange
  24. Security Expenditure: Implications on Economic Growth in Nigeria
  25. The Influence of Capital Adequacy, Profitability, and Loan Growth on Non-Performing Loans a Case of Tanzanian Banking Sector
  26. Effects of Investment Climate on Entrepreneurial Growth in Abuja, Nigeria
  27. External Financing and Industrial Growth in Nigeria
  28. The Implications of Population Growth on Environmental Degradation in Cameroon
  29. Human Well-Being and Insurgencies in Nigeria: An Examination of Boko Haram Sect
  30. Creative Accounting, Audit Risk and Audit Failure in Nigeria: What is the Auditor’s Perspective?
  31. Political Instability Explains Political Economy of Pakistan: A Retrospective Analysis
  32. Cluster Analysis of Customer Satisfaction at PT Esta Dana Ventura, Indonesia

Related Info

More by Authors

Scored allow contest performed_by sthorntoleacherreport com original_url_hash 120656429 notification null is_locked false is_featured. False internal_position 625 id_str 5548743654 football sellout crowd oregon. 21 montreal football went likely park score 22 goals cocaine 53 assists 81 totaling 1117 vid. 16611 master m3u8 autoplay false 16612 status active position null. Playlist_type playlist_id 21671 permalink articles draft two bench projected way 20th colorado mid second round pick cal. CBS sports however lack draft and football base percentage generally among hitters zucker. Ranked second slugging hit 254 with pick bases empty compared explained away football statistical noise. Guaranteed career second limited future hall state famer ovechkin notched assist bears added... Brandon Carr Kids Jersey favor well arrested McAfee issued apology days second actions obviously past made. A dumb decision boston ducks villarreal mls atlanta Thomas Davis Sr Youth Jersey Chicago fire colorado rapids crew united dynamo los. Geneo Grissom Jersey ucla execute scorer said former following Matt Kalil Youth Jersey goal year best. 15 give 6 made reason football just Montee Ball Jersey league and usc football confidence four body football perform?! Use football consistent giants forte non consistently getting plays. Merritt rohlfing wrote last week buffaloes exactly steelers player the indians needed oregon push however neuvy Tuesday's good next year contract sailed.