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Comparative Impact of Commercial Papers vs. Treasury Bills on Nigeria's Economic Growth (2012-2022): A Money Market Instruments Analysis
Ebele Igwemeka C., Eje Grace C. & Obiekwe Chinelo Jenevive
This study analyzes the comparative impact of Treasury Bills (T-bills) and Commercial Papers (C_PAPERS) on Nigeria’s economic growth from 2012 to 2022, offering insights into the role of money market instruments in emerging economies. The findings challenge conventional macroeconomic theories by revealing a positive and significant relationship between both instruments and economic growth. Contrary to the crowding-out effect typically linked to government borrowing, T-bills serve as liquidity management tools that stabilize financial markets, mobilize savings, and attract investors, aligning with Schumpeterian and endogenous growth theories. Similarly, Commercial Papers, often perceived as short-term liquidity solutions, significantly drive long-term growth by enabling corporate access to working capital, enhancing productivity, and bridging financing gaps in Nigeria’s credit-constrained environment. The study underscores T-bills’ dual role in deficit financing and economic stimulation, while Commercial Papers emerge as catalysts for innovation and scalability in the private sector. However, substantial unexplained variances (56% for T-bills, 46% for C_PAPERS) highlight the critical need for complementary policies, including infrastructure investment, institutional reforms, and enhanced market transparency. Policymakers are urged to integrate T-bills into growth-oriented monetary strategies and deepen regulatory frameworks for Commercial Papers. This research contributes to fiscal-monetary policy discourse by advocating context-specific strategies that leverage money market instruments while addressing systemic barriers. It calls for scholars to refine theoretical models linking short-term debt to growth and emphasizes evidence-based, holistic approaches to sustainable development in Nigeria’s unique financial ecosystem.
Editorial
Published: 31 March 2025
9(1) 37 - 49.
Abstract
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Department of Banking and Finance, University of Nigeria, Enugu Campus, Enugu State, Nigeria1
Ebele Igwemeka C.1, Eje Grace C.2 & Obiekwe Chinelo Jenevive3
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Ebele Igwemeka C.
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Ebele Igwemeka C., Eje Grace C. & Obiekwe Chinelo Jenevive (2025). Comparative Impact of Commercial Papers vs. Treasury Bills on Nigeria's Economic Growth (2012-2022): A Money Market Instruments Analysis. Otuoke Journal of Management Sciences, 9(1) 37 - 49.
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Department of Banking and Finance, Enugu State University of Science and Technology, Enugu, Nigeria2
Department of Banking and Finance, Michael Okpara University of Agriculture, Umudike Umuahia, Abia State3