Monetary Policy Variables and Performance of Mining and Quarry Sector in Nigeria

This study looked at how Nigeria's mining and quarry sector performance in relation to several monetary policy variables. The proxies for the monetary policy variables were open market operations, the monetary policy rate, the liquidity ratio, and the cash reserve requirement. The study's geographic focus was Nigeria, and its temporal scope spans 1987 to 2022, taking into account the post-structural adjustment program and additional measures including economic deregulation throughout this time. The Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), and the World Bank Index (WBI) annual statistical report served as the sources of data for this quasi-experimental study. The acquired data were statistically analyzed using the error correction model, the Granger causality test, the Johansen co-integration test, the Augmented Dickey Fuller unit root test, and other methods to achieve the goals. The findings showed that the performance of Nigeria's mining and quarry industry is significantly impacted by open market operations, liquidity ratios, and cash reserve ratios. Furthermore, the performance of Nigeria's mining and quarry industries is severely and badly impacted by increases in the monetary policy rate. The study came to the conclusion that Nigeria's mining and quarry sector is highly impacted by monetary policy variables. The study recommended that, the authorities should increasingly check the activities of smugglers, illegal miners and legitimate operators who submit false returns, and prosecute culprits accordingly. This will not only instill sanity into the sub-sector, boost Government revenue, but also improve the quality of mining and quarrying performance.