CHOOSE YOUR CURRENCY


THE EVOLUTION OF NIGERIA MONETARY POLICY AND ITS PERFORMANCE SINCE EARLY 1980S

Amount: ₦5,000.00 |

Format: Ms Word |

1-5 chapters |



CHAPTER ONE

INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 

Abstract

This project has traced the evolution of Nigeria’s monetary policy and its performance since the early 1980’s, to provide a background to the reviews; it discussed same theoretical aspects of monetary management. On the theoretical aspect it reviewed the concepts of monetary management, the objective of monetary policy and the instruments of monetary policy. The highlights of the Nigeria economy of the 1970’s were the growing importance of oil, the expending role of the public sector in the economy and the large dependable on the external sector. Despite the family impression economic performance of the period, some economic problem such as growing fiscal pressures, assumed more serious dimensions. In the prevailing circumstances, monetary central framework and the large divergence of fiscal operation from the set monetary and credit targets. The oil boom of the 1970’s come to an end in the early 1980’s.

 

 

 CHAPTER ONE

INTRODUCTION

  • Background of the study

In this day of trade and commerce, many enterprises are springing up. Sale proprietorship Partnership Corporative, limited liability Company Being established for the purpose of achieving objective as it related to their businesses.    These businesses have one thing in common and that is they all employ the factors of production land, capital, labour and entrepreneurship for the achievement of their various objectives. These objectives could be effectively and efficiently achieved if these very important tools are properly managed. A good and efficient business done not end with the profit made but ought to be sustained to ensure a more regular flow of income and subsequent profit          The sustainability of a good business depends on a number of factors the location of the business (which includes the land) environment, proximity to the required raw material and the targeted end users, and more importantly, funds. A good business can only thrive if the effective human resources are employed. Therefore it is necessary to ensure that a proper qualified workforce is employed to enhance productivity. Another factor that will enhance the productivity and profitability of a good business outfit is proper accounting. If proper accounting procedures is employed in a business, waste of funds. Time and materials will be minimized. Although it is the duty of every employee in a business outfit to imbibe the culture of maintenance and accountability, the accountant has a greater put to play in this aspect of the business.  Proper accounting is the hallmark of any business and it cuts across every segment of the business from the security gate to the office of the Chief executive. In modern day business proper accounting is very beneficial and rewarding. It appraises, revaluates and checks the amount of capital invested, as well as revenue and expenditure that occur during the business financial year. With this profit and loss account is brought also into consideration, where proper accounting has not been introduced in a business, there is bound to be some irregularities. The income and expenditures would not be accurately recorded thereby making it difficult for the actual profit to be ascertained. The importance of proper accounting in modern day business cannot be overemphasized because it definitely has a positive effect of the workforce. The work force will be more careful, cost conscious and committed to the business, profit will increase and waste minimized. Business is the exchange of goods, services and money on an arm’s length basis that result in mutual benefit or profit for both parties involved. An individual engages in business because he or she believes that the rewards or possible benefit of business are greater than the risks or possible future sacrifices of business.   Accounting is often said to be the language of business it is used in the business world to describe the transaction entered into by all kind of organization. The actual record making phase of accounting is usually called bookkeeping and he use to which these record are pt, their analysis and interpretation. An accountant should be interested in relationship between the financial results and the events which have created them.  The owners of a business would want to know Whether or not the firm operating at a profit Where or not the business will be able to meet its commitment as they fall due, or have to close down owing to lack of funds Whether documentary evidence of the company business activities can be maintained. The tool for a successful proper accounting report called financial statement that describes the financial position of a business and the result of its recent operation.  A complete set of financial statement for a business include fair related accounting report: A balance sheet. This is the statement that shows the financial position of the business at a specific date by describing its financial resources and obligations. Over the years, the major goals of monetary policy have often been the two later objectives. Thus, inflation targeting and exchange rate policy have dominated CBN’s monetary policy focus based on assumption that these are essential tools of achieving macroeconomic stability (Ajayi, 1999). In Nigeria, monetary policy has been in use since the Central bank of Nigeria was saddled the responsibility of formulating and implementing monetary policy by Central bank Act of 1958. This role has facilitated the emergence of active money market where treasury bills, a financial instrument used for open market operations and raising debt for government has grown in volume and value becoming a prominent earning asset for investors and source of balancing liquidity in the market. Monetary policy has two fundamental goals to promote maximum sustainable output and employment and to maintain sustainable price level in the economy. The job of stabilizing output in the short run and promoting price stability in the long run involves several steps first, the central bank tries to estimate how the economy is doing now and how it is likely to do in the medium term, then, it compares this estimates to its goals for the output and the price level, if there is a gap between the estimates and the goals, the CBN have to decide on how forcefully and swiftly to act to close the gap. Estimate of the current economic conditions are not as even as the most up-to-date data on key variables like employment, growth, productivity etc, largely reflect condition in the past. So to get a reasonable estimate of the current and medium term economic conditions, the central bank tries to find out what the most relevant economic developments are such as government spending, economic conditions abroad, financial conditions at home and abroad and the use of new technologies that boost productivity. These developments are the incorporated in an economic model to see how the economy is likely to evolve over time. In doing this, the central bank is confronted with some unexpected development such as the Niger- Delta crisis that disturbed the oil production and slowed down the revenue generation by the government they therefore, have to build uncertainties into their model. Uncertainty seems to be problem at every part of the monetary policy process and there is yet no set of policy and procedures that policy makers can use to deal with all situations that may arise (Chimezie, 2012). Indeed, the central bank spends a great deal of time and effort in researching into the various ways to deal with different kinds of situation.

  • STATEMENT OF THE STUDY

Monetary policy is known to be a vital instrument that a country can deploy for the maintenance of domestic price and exchange rate viability, as a critical condition for the achievement of a sustainable economic growth and external viability”(Amasomma et al, 2011). on a yearly basis, the monetary authority formulate guidelines geared towards the enhancement and development of policy variable designed to ensure optimal performance of the banking industry and ultimately to advise the macroeconomic goals or objectives but in the implementation of such policy variable certain conflicting issues are to be addressed ranging from the ability to comply with various monetary policy guidelines as well as satisfying depositors and shareholders (Chimezie, 2012). Central bank of Nigeria uses various instruments to achieve its stated objective and these include: open market operation (OMO), required reserve ratio (RRR), bank rate, liquidity ratio, selective credit control and moral suasion. There have been various regimes of monetary policy in Nigeria. Sometimes, monetary policy is tight and at other times it is loose, mostly used to stabilize prices. The economy has also witnessed times of expansion and contraction but evidently, the reported growth has not been a sustainable one as there is evidence of growing poverty among the populace. The controversy bothering on whether or not monetary policy measures actually impact on the Nigerian economy is a problem this study sets to solve. Therefore, the main thrust of this study is to evaluate the effectiveness of the CBN’s monetary policy over the years. This would go a long way in assessing the extent to which the monetary policies have impacted on the growth process of Nigeria using the major objectives of monetary policy as yardstick.

  • OBJECTIVE OF THE STUDY

The objectives of the study are;

  1. To ascertain the relationship between monetary policy and Nigeria economic performance
  2. To ascertain the effect of monetary policy on Nigeria economy
  3. Examine what changes in profitability resulted from changes in monetary policy
  4. Articulate tentative policies that promote the performance of the banking sector in Nigeria

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0: there is no relationship between monetary policy and Nigeria economic performance

H1: there is relationship between monetary policy and Nigeria economic performance

H02: there are no changes in profitability resulted from changes in monetary policy

 

H2: there are changes in profitability resulted from changes in monetary policy

  • SIGNIFICANCE OF THE STUDY

This study will give a clear insight on the evolution of Nigeria monetary policy and its performance since early 1980s. The study will be beneficial to students and Nigeria government. It will also serve as reference to other researchers that will embark on this topic

  • SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the evolution of Nigeria monetary policy and its performance since early 1980s. The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 DEFINITION OF TERMS

 

MONETARY POLICY: Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base

Money: As a medium of exchange, a store and measure of value which economic agents preserve, and units of account which form the basis of comparing prices and evaluating relative values, generally, anything that is acceptable as an instrument of settlement can be term as money for the settlement of legal payments; it is conferred as status of legal tender.
Money supply: Represent the measure of money and include currency in circulation (with non-bank, public) and demand deposit at the commercial bank MI. The broad measured of money include MI and savings and time deposits, also called quasi money (QM) at the commercial and merchant banks and represents by M2.

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

 



This material content is developed to serve as a GUIDE for students to conduct academic research


THE EVOLUTION OF NIGERIA MONETARY POLICY AND ITS PERFORMANCE SINCE EARLY 1980S

NOT THE TOPIC YOU ARE LOOKING FOR?



Project 4Topics Support Team Are Always (24/7) Online To Help You With Your Project

Chat Us on WhatsApp »  09132600555

DO YOU NEED CLARIFICATION? CALL OUR HELP DESK:

   09132600555 (Country Code: +234)
 
YOU CAN REACH OUR SUPPORT TEAM VIA MAIL: [email protected]


Related Project Topics :

Choose Project Department