The main focus of monetary policy in relation to the manufacturing sector has always been the stimulation of output, employment and the promotion of domestic and external stability, while that of fiscal policy has been the generation of revere for the government and the protection of domestic infant industries against unfair competition from import and dumping. This paper examined the performance of monetary policy on the manufacturing index performance in Nigeria. The data collected from the CBN 2010 bulletin were subjected to econometric test procedures such as unit root for stationarity of series, diagnostic test and granger causality to investigate the impact of some macroeconomic variables on the Manufacturing index in Nigeria while VEC and OLS estimation were used to study the models for significance, magnitude, direction and relationship. The study revealed that MS positively affect MANDEX by 0.5% while others played negative impact to the performance of the manufacturing sector over the years. It therefore recommended that expansionary policies are vital for the growth of the manufacturing sector in Nigeria which in turn would lead to economic growth,

The main focus of monetary policy in relation to the manufacturing sector has always been the stimulation of output, employment and the promotion of domestic and external stability, while that of fiscal policy has been the generation of revere for the government and the protection of domestic inf...