Impact of Monetary and Fiscal Policies for Controlling Inflation in Nigerian Economy

One of Nigeria's biggest issues right now is inflation. However, the Central Bank of Nigeria (CBN) has attempted to combat it through a variety of policy tools, including monetary policy. Therefore, the impact of monetary policy on Nigeria's inflation control is the main emphasis of this study. The investigation used the Error Correction model (ECM) estimation, Johansen's co-integration test, and the Augmented Dickey Fuller test. The exchange rate, inflation rate, money supply (as a percentage of GDP), Treasury bill rate, and monetary policy rate are among the factors. The study's conclusions demonstrated that monetary policy had no discernible short- or long-term effects on Nigeria's ability to manage inflation. In the short and long terms, Nigeria's money supply has a detrimental and negligible effect on the country's ability to control inflation. Once more, both in the short and long term, the exchange rate has a detrimental and negligible impact on Nigeria's ability to control inflation. In the near term, the Treasury bill rate has a negative but large impact on Nigeria's ability to manage inflation; in the long term, however, it has a positive but negligible impact. The study recommends that the government implement monetary policies that create a favorable environment through appropriate monetary policy rates and exchange rates. This approach aims to attract both domestic and foreign investment, thereby generating employment opportunities for the Nigerian population and facilitating industrial expansion in the country.