CHAPTER
ONE
INTRODUCTION
I.I BACKGROUND OF THE
STUDY
Before the establishment of the
Central Bank of Nigeria
the West African Currency Board (WACB) which was established in 1912 had the
responsibility for issuing legal tender currency. The WACB was set up to
promote the financing of the export trade. It was the duty of WACB to issue
West African currency. The exchange of existing currencies and the investment
of reserves.
The reserve were invested in Britain and this is in a way facilitated Nigeria’s
international payments. However because the WACB was linked to the British
system it could not engage in monetary management neither Nigerian trained in
the art of monetary management.
In order to promote the growth of the
domestic money and capital markets. There by eliminating this deficiency. The
Central Bank of Nigeria
was established in 1958 and it commenced business on 1st July 1959.
The central bank of Nigeria
formulates monetary proposal in a memorandum which is sent to the government
through the minister of finance. Taking into consideration the views and
suggestions of the banking community and other business interest and interested
public groups and other business interest and interested public groups and
individuals.
Monetary policy in Nigeria is
conducted by the Central Bank of Nigeria set up under the Central Bank of
Nigeria (CBN) ordinance of 1958 (as amended from time to time) to serve as
banker and foreign exchanged dealer principally to the federal government of
Nigeria.
1.2
STATEMENT OF THE PROBLEM
The main objective of the study is to
undertake a review of the central Bank of Nigeria monetary policy measures
from 1980 – 2005 in the review. The objective, the roles, the phases and the
appraisal of monetary policies between the period in question, with be
discussed.
1.3
OBJECTIVES OF THE STUDY
The studies conducted by the
researcher an performance appraisal of monetary policy of central bank of Nigeria reveals
that the objectives of the study includes the following.
1. To determine how rural dwellers had
responded to the services of central banks.
2. To identify the type of customer that
patronize central banks.
3. To examine if the availability of the
loan has redulod the level of rural urban migration.
4. To determine any other on banking
services. The are reudered to the public by the central banks.
5. To ascertain the extent to which
granting of loan to rural dwellers has affect an unemployment level.
1.4
SIGNIFICANCE OF THE STUDY
Although students research abounds in
this area, this work will serve as an addition to existing literature in this
topic. It would also find out the performance appraisal of monetary policy.
This project would also provided
insights to the students of Banking and Finance and individuals who do not know
much about the activities, operation and roles of the monetary policy in the
central bank of Nigeria.
Above all, the essence of the study
is to point out a positive direction for a smooth operation for the use of the
monetary policy.
1.5
LIMITATIONS OF THE STUDY
Although certain journals textbooks
magazine were used in the course of this study. The main limitation of the
study were finance and problem of data collection.
Due to this limitations the project
writing was carried out within the limited time available and finance.
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