Global Economics: International Journal of Economic, Social and Development Sciences Volume. 2, Number. 1 March 2025 e-ISSN : 3063-6213, p-ISSN : 3063-6221, Page 61-83 DOI: https://doi.org/10.70062/globaleconomics.v2i1.193 Available online at: https://economics.ifrel.org/index.php/GlobalEconomics Received February 14, 2025; Revised February 28,2025; Accepted March 03, 2025; Published : March 05,2025 An Empirical Assessment Of The Central Bank Of Nigeria's (CBN) Policy is Used to Analyze the Factors That Influence Monetary Policy and the Stability Of Nigeria's Economic Growth. Sulaiman, T.H 1* , Ajiteru, S.A.R 2 , Abalaka, J.N 3 1,3 Crown University, Faculty of Social Science, United States. 2 Department of Political Science ,International Relations Achievers University, Owo, P.M.B.1030 Owo Ondo,Nigeria. staiwohassan99@yahoo.com 1* , ajiterudr.sheriffdeen@gmail.com 2 , abalaka.james@yahoo.com 3 Author Correspondence: staiwohassan99@yahoo.com * Abstract.This study examines the impact of the Central Bank of Nigeria's monetary policies on the Nigerian economy, specifically how these policies can be applied to foster economic growth. The research employs multiple regression models as the primary statistical method to analyze the relationship between key variables: money supply, average price levels, interest rates, labor force, and their effects on the Gross Domestic Product (GDP). Using data from 1981 to 2008, the study applies the Ordinary Least Squares (OLS) method to assess these effects comprehensively. The findings indicate that monetary policy, as reflected by money supply, positively influences GDP growth and improves the balance of payments, while also having a negative impact on inflation rates. The study suggests that the Nigerian money market should introduce a broader range of financial instruments to cater to the growing economy’s needs. Additionally, the recommendations emphasize the importance of designing monetary policies that create a favorable investment climate by adjusting interest rates, currency rates, and liquidity management mechanisms. By fostering a well-regulated and flexible monetary system, the Central Bank can further enhance the economic stability and growth of Nigeria, supporting sustainable development in the long term. Keywords: Economic growth, Financial innovation, Monetary policy, Real money demand, Transmission mechanism 1. INTRODUCTION Nigeria's economy, which depends heavily on imports, has challenges such as slow growth, erratic business cycles, and economic volatility (Sulaiman, 2023). Unemployment, inflation, inefficiency, and imbalance of payments are typically the outcomes of this. In one way or another, the government has regulated and managed the economy to ensure that resources are used and allocated effectively, maximizing the welfare of the populace. Abalaka (2023). The Nigerian government implements three different kinds of public policies to achieve the goals of resource allocation and income distribution, much like any other developing nation (Sulaiman, 2022). Monetary, fiscal, and income policy tools are some examples of these public policy instruments. In order to accomplish specific macroeconomic goals, such as employment, economic growth and development, balance of payments stability, and a generally steady level of prices, the Nigerian government has historically depended on monetary policy. The rationale