INDONESIAN JOURNAL OF BUSINESS AND ECONOMICS Vol.4 Issue 2, December 2021 Printed ISSN 2621-6167, e-ISSN 2621-4466 https://journal.uniku.ac.id/index.php/ijbe 635 Relationship Between Money Market And Economic Growth In Nigeria Dr. Bashir Ahmad Daneji 1 , Mohammed Bello Abubakar 2 , Mohammed Dahiru Yole 3 Kabiru Musa Yakubu 4 1, 3 and 4 Department of Banking and Finance, 2 Department of Economics Modibbo Adama University, Yola Nigeria 1 badaneji@mautech.edu.ng Abstract This paper investigated the relationship between money market and economic growth in Nigeria. Secondary data for 38 years covering the period of 1981 to 2018 was used. Econometric methods of analysis of Lag Length Selection Criteria, ARDL Bound Test for Cointegration, Long Run and Short Run Estimations and Diagnostics Tests of Serial Correlation, Hetroskedascitity, Cusum Test and Ramsey Reset Test were carried out. The result found that there is long run relationship between money market and economic growth, as indicate by the F-statistics 4.48 which is higher than the upper bound values at all level of significance. This suggests that there exists a long run relation between money market and economic growth. The results of the error correction suggest the validity of long- run relationship between money market and economic growth. The study recommends that financial market regulatory body to increase the size of the money market through policy relaxation in order to achieve economic growth in the country. Keywords: Money Market, Economic Growth, Bound Test. JEL Classification: C01, E05, G10 Introduction Money market provides means for liquidity and a way of raising short-term funds for lubricating economic activities in any nation. Central Bank Nigeria (2007), maintain that the money market exists as a means of liquidity adjustment in the country. In other words, the money market provides a mechanism for short-term funds of less than one year. The importance of this market in any modern economy is enormous. The money market allows the households, firms and even government the opportunity to raise funds from the savings of surplus economic units. Andrew and Deborah (2015) discover that the money market operations made significant contributions to gross domestic product. In addition, the results from Pearson correlation coefficient matrix substantially attest to strong linear relationship between the gross domestic product and Treasury bills, Treasury Certificate, Certificate of Deposit, Commercial Papers and Banker Acceptances as explanatory variables. Also emphased by Anochie, Ude and Chukwu (2015), the Nigerian money market is an indication of a strong national investment for economic development of the Nigerian economy, having provided a platform for business expansion, privatization programme and self- employment. It has also helped investors provide fund for the development of projects which have turned around the