Macro-Economic Policies and the Performance of Nigerian Financial Institutions

Abstract

This study was undertaken to determine the effect of macroeconomic policies on the financial sector of the Nigerian economy over a period of ten years (2007-2016). Macroeconomic policies used were monetary, fiscal and commercial and their instruments were deposit rate, government expenditure and import duties respectively. The interrelatedness between the measuring instruments was analyzed using regression analytical tool. The findings revealed that fiscal and commercial policies had significant relationship with deposit liability of money deposit banks thus we concluded that macroeconomic policies affect the operations of financial institutions specifically money deposit banks. Hence, we recommended that government through CBN should institute workable macro-economic policies that will affect the economy in a whole.