Effectiveness of Macroeconomic Stabilization Policy: A Metadata Analysis

By: Orji Joseph Ogbonna, Ojide Makuachukwu G

Pages: 656–678, Volume: 3, Number: 1

Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 5/1/2026, 2026

ISSN (Electronic): 2536-6742

DOI:

Effectiveness of Macroeconomic Stabilization Policy: A Metadata Analysis

Abstract:

This study investigated the effectiveness of bond instruments in driving infrastructure financing in Nigeria, specifically, the study evaluated the impact of Federal Government of Nigeria (FGN) Bonds, Sovereign Sukuk Bonds, FGN Savings Bonds, and Sovereign Green Bonds in addressing the nation’s persistent infrastructure deficit. The research utilized a quantitative research design with secondary data spanning from 2017 to 2024. The Autoregressive Distributed Lag (ARDL) method was employed to analyze the relationships between the various bond instruments and infrastructure financing, supported by rigorous diagnostic tests including Breusch-Godfrey for serial correlation, Breusch-Pagan-Godfrey for heteroskedasticity, and the Ramsey RESET test for model specification. The findings revealed that Sovereign Bonds, Sukuk Bonds, and Savings Bonds exert a significant positive impact on infrastructure financing in Nigeria. The success of Sukuk Bonds reinforces empirical evidence regarding the effectiveness of project-tied Islamic finance in road rehabilitation. Conversely, Sovereign Green Bonds were found to have no significant impact, likely due to nascent market development and a lack of transparent postissuance reporting. The study concludes that while bond instruments are potent tools for capital mobilization, their effectiveness is contingent upon institutional quality and fiscal discipline. It recommends that the government should maintain the issuance of project-linked bonds like Sukuk while enhancing the transparency and regulatory framework for Green Bonds to attract climate-focused investment.

Keywords: Infrastructure Financing, Bond Instruments, Sovereign Sukuk, Green Bonds, ARDL Model, Fiscal Discipline