ABSTRACTOne can hardly find a country without monetary policy. As amatter of fact, monetary policy has gained a solid ground inthe Nigerian economy. However, in light of various economicproblems in Nigeria, it would seem the benefits of monetary ABSTRACTOne can hardly find a country without monetary policy. As amatter of fact, monetary policy has gained a solid ground inthe Nigerian economy. However, in light of various economicproblems in Nigeria, it would seem the benefits of monetarypolicy are yet to be fully harnessed. The purposed of this studyis to analyse the impact of monetary policy with Nigeria beingthe case study. With regards to the data analysis, regressionanalysis was applied. The study covers the effectiveness ofmonetary policy from the period 1985 to 2011. The studyrevealed that the level of effectiveness of monetary policy ishighly influenced by the Central Bank of Nigeria (CBN).