Empirical evidence on the effectiveness, dominant and the exact channel through which monetary policy impact the Nigerian economy is at best mixed. Against this backdrop, this paper set out to investigate this mixed evidence by exploring a data-rich environment using a FAVAR model estimated with 53 variables spanning the quarterly period of 1970:01 to 2013:04. Overall, the results showed that interest rates and credit channels are the dominant and strongest channel of transmission of monetary shocks in Nigeria, followed by Exchange rate and money channel. Stock channel, has no significant impact in the transmission process. Based on these result, we recommended that the Central Bank of Nigeria should improve on the use of the interest rate and credit channels as monetary policy variables through a policy approach of stimulating and emphasizing judicious management. This has the capacity to stimulate growth in distinct sectors of the economy.

The manufacturing subsector has become increasingly important as the engine and driver of economic growth in both developing and developed economies. This study set out to investigate the relationship between manufacturing output and economic growth. The analysis was conducted using time series data from the period of 1981-2013. To quantify the relationship between manufacturing output and economic growth, an eclectic model consisting of both the Kaldor's first law of growth and the endogenous growth model was estimated. Findings from the study showed that manufacturing output, capital and technology were the major determinants of economic growth. Results also confirm that quality of institutions and labour force does not exert any impact on economic growth. The study concludes that the provision of capital in the form of financial resources to fund the manufacturing sector will greatly improve manufacturing activities in Nigeria. Furthermore there is the need to improve resource allocation to the field of research and development to promote innovative development such as technology adaptation to boost manufacturing activities within the country.

This paper examines the relationship between institutional quality, macroeconomic policy, and economic development in Nigeria. We employ data from four development indicators: the prevalence of undernourishment, life expectancy at birth, the Human Development Index (HDI) and Gross Domestic Product (GDP) per-capita from 1995 to 2013 to examine the validity of the proposed framework. Our result indicates an insignificant impact of domestic institution on Nigeria development indices. Interest rate was also found to have an insignificant impact on economic development in Nigeria, even when growth related indices were considered. On the other hand, government expenditure was found to exert a significant, though small, impact on the country's development indices. Based on these, a holistic approach of attitudinal change, systematic strengthening and development of institutions is recommended for the attainment of the country`s developmental objectives.

Empirical evidence has shown that the result of the exact channel of monetary policy transmission in Nigeria is mixed. This paper compared the Factor-augmented vector-auto regression (FAVAR) framework which exploits large data set of 53 with the traditional VAR model that estimates 6 variables to ascertain the exact channel of transmission. Findings from the two models conclude that although both methods generate qualitatively related results, but the FAVAR model is a superior alternative over VAR on grounds that monetary policy shocks are better identified using the FAVAR model. Also the FAVAR model does not exhibit the prize puzzle problem found in the VAR but allows for the computation of impulse responses of a large number of variables. Results from both models show that interest rate and credit channels are dominant and strongest channels of monetary policy transmission in Nigeria. Exchange rate and money channels were not significant and pronounced.

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