THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY
ABSTRACT
Through the instrument used in monetary policy help us by the control of inflation in an economy. This to know the control of inflation using central bank of Nigeria monetary policy. Hence, this research work was focused on the investigation of the control of inflation by using central bank of Nigeria monetary policy. In carrying out this study, various research instruments such as questionnaires and oral interviews were used to collect data from respondents. The research design and methodology secondary data was collected from central bank of Nigeria bullion. Location of data and this was stated in chapter three (3) of the research work from the data collected and stated it was found out that of the control of inflation using CBN monetary policy. The government should establish firms in the economy to reduce the rate of inflation and opening market operation. Recommendations were made in chapter five shows that in order to prevent through currency devaluation, Nigerians should use in manufacturing capacity labour and skill to take advantage of export opportunity that are created in international market. The introduction of the structural adjustment programme (SAP), in Nigeria had with it seen the need for efficient and effective management of a firm’s scarce resource, and for this to be effective.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
After an appreciated economic performance in the early 1970s, the Nigerian economy experienced serious economic problems from late 1970s to mid 1980s the country’s balance of payment came under severe pressure and was in persistent deficit during the period. the government’s current expenditure expanded without an appreciable increase in revenue, leading to widening fiscal deficits, which were largely financial with bank credit with adverse consequences on the general price level. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, (Ahmed, 1992).
In addressing the crisis, a number of policy measures regularly demand government embarked upon management. In April 1982, the federal government enacted the economic stabilization measured, which dealt extensively on import restriction as well as monetary and fiscal policies. The effectiveness of this measures were constrained by the continued decline in foreign exchange earnings, the over valuation of naira and other distortions and liquidities in the economy, (Ahmed, 1992).
As the demand pressure movement at the inter-foreign exchange market (IFEM), the exchange rate of the naira came under renewed pressured in spite of CBN’s determination to fund the growing demand for foreign exchange. The naira cost 1% of its face value in February 2002 dropping from N11396 to N114, 75 per dollar at the official market in the parallel market, it cost 2.3% of its value as depreciates from N135.52 to N138.68 per dollar. This was an indication that inflation rat is on the increase (Yansi, 2002).
This study is being carried out to know the different CBN credit instruments and their effectiveness in inflationary control.
STATEMENT OF THE PROBLEM
This research project is designed to investigate inflation control through the use of monetary policy. There have been various efforts by the government to combat inflation in the country. But in spite of all these efforts being made, inflation is said to be alarming in the country. Nigerian industries as well as individuals are groaning under the crusting effect of inflation. What the causes of the phenomenon, what measures are taken so far to combat the situation, are credit instrument of CBN effective or ineffective in controlling inflation? (Ozo, et al 1999).
OBJECTIVES OF THE STUDY
1. To find out whether currency devaluation is a cause of inflation.
2. To find out the extent to which inflation has effected the economy.
3. To determine the effectiveness of open market operations as a tool for inflation control.
4. To identify the adverse effect of inflation on economic growth.
5. To recommend measures for effective control of inflation through monetary measures.
RESEARCH QUESTION
1. Is currency devaluation a cause of inflation?
2. To what extent has inflation affected the economy?
3. What is the effectiveness of open market operation as a tool for inflation control?
SIGNIFICANCE OF THE STUDY
The study is very timely, today that inflation trends is at an alarming rate in Nigerian economy. This study will be of immense benefit to the government and experts and students to determine the extent of the effect now of CBN monetary policy as a tool of inflation control. In addition, the study will determine the facts or problem limiting the effectiveness of these instruments. It is expected that the findings will help to bridge any gap that may exist and to make this instruments effective in inflation control (Ozo et al 1999).
The government achieved its objectives in economic growth and stability through inflation control we will help the government to know whether to pump money into the economy or not.
NOT THE TOPIC YOU ARE LOOKING FOR?
Once payment is made, kindly send us your project topic, email address and payment name to +234 810 144 4147
Once payment is confirmed, Project materials will be sent to your email
Importation is important for the development and growth of national economies because not all countries have the resources and skills required to produce certain goods and services thus there is need for them to import products which they deem fit is...
This study will be helpful in the academic field as it would be an addition to the issue of covid-19 and its effects on unemployment.
This study will be helpful to Lagos state Government and governments of other states in Nigeria in creating awareness of the effects of overpopulation and on how to diffuse the population properly.
This study will examine the effect of corruption in government agency on the economic growth and development of Nigeria.
This study will be helpful to organizations in creating awareness on the effects of relying only on corp members on other unemployed youths.
This study is of significance to the government as it will serve as a guide in implementing effective measures to curtail crimes and insecurity as it find means of solving the motorcycle and tricycle ban.
This study is significant as it provides an opportunity to hear Nigerian women's perspectives on their access (or lack thereof) to education and the hurdles that prevent them from participating in it.
This topic is critical to assisting policymakers in making decisions about how to allocate public funds. Future academics will be able to use these findings to learn more about the relationship between government agriculture spending and economic gro...
The government of Nigeria, students, and the general public will benefit from this study. Nigeria's ability to relieve poverty is contingent on adequate inflows of foreign investment funds and a secure investment environment.
This study it gives actual information on the current condition of government spending management and accountability.
Message Us on WhatsApp »
