The nexus between monetary policy and sustainable development goals number ten in Nigeria

Abstract

This study examined the nexus between monetary policy and sustainable development goals number ten in Nigeria from (1987 to 2022). The data for this study were collected from secondary sources, which include World Bank and World Development Indicator online data base, previous studies, as well as journals articles. The estimation techniques used for this study were econometrics tools to run the regression, unit root test, ARDL, Bound Test, and granger causality tests. The results from the study showed that there is combination of I (1) and I (0) among the variables based on the stationarity test conducted. The ARDL test result shows that there is existing of long relationship through the bound test, of F-statistics 5.63 at 10 and 5 per cent respectively. The granger causality test indicated bidirectional causality and no causality relationship among the variables. The results of the short run and long run indicated that the monetary policy has both positive and negative impacts on SDG-10 in Nigeria. The study recommends that the government should consider the inflationary and exchange rates in Nigeria in order to tackle the level of inequality among the citizens. This can be effectively carried out through a stringent price control for goods and services as well as implementing a fixed exchange rate policy that would restrict the everdeclining value of naira relative to dollar exchange rate. If effectively articulated, it will ensure equitable distribution of income and wealth among the citizens in the country. The major scientific novelty introduced in this study is the measurement of inequality using Gini Coefficients based on SDG-10 perspective.