The Effect of Monetary Policy on the Development of Nigeria Financial Institutions (A Case Study of Central Bank of Nigeria Plc)

TABLE OF CONTENTS

TITLE PAGE                                                                          i

CERTIFICATION                                                                   ii

DEDICATION                                                                         iii

ACKNOWLEDGEMENT                                                         iv

TABLE OF CONTENTS                                                          v

CHAPTER ONE

1.0 INTRODUCTION                              

1.1 OBJECTIVES OF THE STUDY                                                   4                                    1.2 SIGNIFICANT OF THE STUDY                                                        4

1.3 RESEACH METHODOLOGY                                                     6

1.4 RESEACH QUESTION                                                              8

1.5 STATEMENT OF THE PROBLEM                                                6

1.6 SCOPE OF THE STUDY                                                            8

1.7 DEFINITION OF TERMS                                                              8

1.8 ORGANIZATION OF THE STUDY                                               11

CHAPTER TWO

2.0 LITERATURE REVIEW                                                                13

CHAPTER THREE

3.0 RESEARCH METHODOLOGY                                                       21

3.1 SOURCES OF DATA                                                                     21

3.2 METHOD OF DATA COLLECTION                                               23

3.3 ANALYSIS OF DATA COLLECTION                                              23

3.4 DATA PRESENTATION AND ANALYSIS                                       24

3.5 FINDINGS OF THE STUDY                                                           33

CHAPTER FOUR

4.0 THE HISTORY OF MONETARY POLICY                                       35

4.1 OBJECTIVES OF THE STUDY                                                     40

4.2 INSTRUMENT USED IN MONETARY POLICY                              41

CHAPTER FIVE

5.0 SUMMARY, CONCLUSION, RECOMMENDATIONS

5.1 SUMMARY                                                                                    47

5.2 CONCLUTION                                                                           49

5.3 RECOMMENDATION                                                                    51

REFERENCES                                                                            55

CHAPTER ONE

1.0 INTRODUCTION

In the past year, the Nigeria economy has witness serious micro economy problem, characterized by show in the economic activities, how capacity utilization growing unemployment level debt burden, accelerated inflation intensify exchange rate separation as well as higher perfect receiving of interest rate persistently high and government deficit financing has been identified as the major factors in the observed micro economy problems.

When we talk of micro-economy policies, this deals with monetary and physical policies, but this is concerned mainly with monetary policies. Therefore, monetary policies comprise of those policies desired to influence the behaviour of micro-economy preferably the basic aim of the monetary policy are not the monetary aggregate themselves, but the aggregate in the real sector of the economy such as level of output, stabilization and the economic development. The policies are designed in items to charge the trend of some monetary variable in a particular direction so as to infuse the desired behavioural change in the monetary policies the bank role is to conduct appropriate monetary policies that are consistent with the main economic objective of achieving real growth in gross domestic product, low inflation rate and satiable balance of payment position. This is irrespective of whether the direct or indirect approach is put in place to control money and crudity.