Globally, money markets remain a key instrument employed to jump start the economy and ensure growth and development of any Nation (Ajayi, 2008). In every economy, there often exist financial imbalances and disequilibrium, which calls for the existence of financial markets. Financial markets are institution or arrangements which facilitate the exchange of financial assets such as; deposit and loans, stock and bonds, government securities etc.
the market is broadly classified into money market and capital market. Money market is a series of closely connected markets, which deals with short – term funds; highly liquid, and having its maturity less than a year (Agwu 2004). Capital market on the other hand, provides long term capital to government and corporate bodies with maturity over a year, and often prone to greater risk of default.
            Questions often abound, over the role of money market in accelerating economic growth. The dominant players in money market are commercial banks and other itself provides the basis for operation, manipulation and execution of monetary policies, with discount houses intermediating funds between the central bank and other banks. Money market is the greatest indirect instrument used by central bank of Nigeria (CBN) to control commercials banks. The market provides short – term debt instruments used to finance the working capital of the firms. It provides mechanism for government to direct the economy towards the desired national objectives through the operation of monetary policy. Thus, it facilitates the pool of funds from surplus sector 10 of the economy to the deficit sector at a low interest rate (Ajayi, 2008).
            Prior to independence in 1960, there was no organized money market as whatever existed was linked to London based money market. This economy agent who had surplus funds than they required, had no market to invest them in Nigeria. Thereby, leading to capital flight in country, as these funds are only invested oversea. Thus, leaving Nigerian firms with no funds for investment and consequently hindering economic growth. Numbers of reason abound for the establishment of Nigeria money market. It includes the provision of short term funds, to the public and private institutions, that need such financing for their working capital requirements. It provides an opportunities to banks and non – bank financial institution to use their surplus funds profitably. Above all, efficient monetary system is achieved through central bank of Nigeria (CBN) control of the banking system via; money market.

It is a well known fact that, money market plays a very significant role in accelerating economic growth in any economy. Like, every other market, Nigeria money market has not been fully explored to its full potential in achieving economic growth and development, owing to an inefficient institutional framework (Adegbite, 2007). The inability to provide efficient mechanism for determination of prices of securities and interest that can be based on the realities of supply and demand for funds, and their abilities to make available different and adequate instrument to the market. One would wonder, if the strategies adopted by the money market in financial intermediation successful; or have money market operation impacted on the economic growth.
Provides studies show that, government has not been making adequate effort to capitalize the market, which impedes the market considerably in performing its primary role of development. Other studies, shows that the market is actually playing a significant role in accelerating economic growth in the country. However, all these studies often exclude government instruments like, treasury bills in their investigation, which is seeing as one of the dominant player in the market. This research aim to close this gap in knowledge, by including government Treasury bill in the study.
1.3                   OBJECTIVES OF THE STUDY
            This research work aimed at assessing the impact of Nigeria money market in accelerating economic growth and development. The objectives will include:
1.         To investigate the impact of money market on economic growth.
2.         To evaluate the success of the money market in financial intermediation between surplus and deficit units in the economy.
1.4                   RESEARCH QUESTION
            In the course of this research work, the following research questions will be raised:
a.         Thus the Nigeria money markets impact the economy?
b.         How successful is the Nigeria money market in its financial intermediation?
1.5                   RESEARCH HYPOTHESIS
            The research on the impact of Nigeria money market on economic growth has led the following hypothesis:
Ho:      The Nigeria money market has no significant impact on economic growth.
HI:       the Nigeria money market has a significant impact on economic growth.
1.6                   SIGNIFICANCE OF THE STUDY
            This study will be of great value to the general public. Its finding will be useful to government, monetary authorities, banks and other financial institutions. Others include:
a.         Business men, investors and individuals who are interested about the working of the market.
b.         Also, the study will be of great importance to other researchers interested in this field of study.
1.7                   SCOPE AND LIMITATION OF STUDY
            This research study is designed to investigate the effectiveness of monetary policies in ensuring economic growth, covering the period of 1981 – 2011. With special emphases on the money market and its numerous instruments employed.
            However, the study no doubt will be constrained by number of factors to include; inadequate/reliabilities of data, as data over a particular phenomenon often varies from different source. Others are: Financial and time constraints that abound in the study making it default to give a better work than this one.
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