The Impact of Macroeconomic Policy on the Mining Sector Output in Nigeria

Abstract

Sustainable growth cannot be achieved in isolation without matching the relationship between natural resources and appropriate macroeconomic policies. The study examines the impact of macroeconomic policy on the mining sector output in Nigeria using time series data, spanning from 1981 to 2021. Preliminary tests such as descriptive statistics and correlation were carried out on the data. Also, the stationarity test was conducted using Philips-pereon, while the Autoregressive Distribution Lag (ARDL) method was employed to test for the differential impact of fiscal policy and monetary policy. The result showed that fiscal policy and monetary policy significantly influenced mining sector output in Nigeria. The study concluded that the performance of the mining sector has not been unimpressive in Nigeria during the study period. the government should advance more credit through special directives from the Central Bank of Nigeria to commercial banks to grant more loans to the mining sector.