The article examines how monetary policy affects economic growth in Nigeria from 1970 to 2007. They used Vector Autoregressive models to analyze the relationship between monetary tools and real output growth. Key findings include that real output growth and broad money supply are stable, while other variables like savings and exchange rates fluctuate. The study found that real output growth does not predict changes in monetary variables. Impulse response tests showed how real output growth reacts to monetary shocks, and forecast error variance decomposition analyzed the impact of monetary shocks on real output growth. The results suggest important policy recommendations for Nigeria's economy.