This term paper goes into the analysis of the external reserves
position in Nigeria it embodies the previous problems, current problems and
It is of a great importance to the students of financial and
business studies and those in economics. It is also a very important to
business consultants and investors.
To say the truth it is very important to Nigerian government and
to the entire Nigerian cannot be over emphasized, as a result, the effective
management of Nigeria external reserves stands the chance of ascertaining the
Nigerian economy and compare into to that of other countries. In addition the
management of Nigerian external reserve attracts a lot of public interests.
This is so because unexpected cheques in the welfare of the common man. A good
example was the oil exhortation and boom period, and as a result of this
Nigeria not over herself in reckless flirtation with the new sources of easy
money and the nation has all but was destroyed by arrogant and it is advice to
the people that depend on oil further more the measure taken by the nation;
there is concept evidence that the spending pattern of our people have
rationalized to an extent and agriculture, cash crop production are once more
assuming their abandoned roles.
Nigerian are now motivated toward the goals of self-sufficiency,
and the export incentive recently released by federal government of Nigerian will
do doubt encourage manufacture’s to exploit foreign markets to the benefits of
our external reserves.
TABLE OF CONTENTS
1.1 Background of the
1.2 Statement of
1.3 Objective of the
1.4 Significance of the
1.5 Limitations of the
2.1 Review of Related
3.1 Research Design and
3.2 Sources of
3.3 Location of
3.4 Methods of Data
5.1 Recommendation and
1.1 Background of the Study:
This term paper goes into the analysis of the external reserves
position in Nigerian. It embodies the previous problems currents problems and
future recommendation. Its of a great important to the student of financial and
business studies and those in economics. It is also important to business
consultants and investors.
To be Frank, the important to Nigerian and government stand to the
entire Nigerian cannot be over emphasized which stand the chance of
ascertaining the Nigerian economy and its external reserves position
appropriately. In addition, the management of external reserves of Nigeria
attracts a lot of public interest. This is so because unexpected changes in
external reserve positions generally effects the welfare of the common man. A
good example was the oil exploration and boom period, and the Nigerian shot
over herself in reckless flirtation with the new sources of easy money and
nation has all but was destroyed by arrogant and selfish political hyphens, our
hitherto sources of export and foreign exchange were abandon because of the
interest rested on the money generated from oil.
But as a result of all these, Nigerian started importing those
food items, which we had hitherto been known for and had constituted to the
world’s largest exporters. The face in world oil price over the years caught
this country unaware and off balance.
It therefore revealed to what extent we had mismanaged our
external reserved. And the nation’s economy was abused by improvident, various
incompetent and corrupt regimes who saw leadership as a means to privates good
and self-enrichment. Nigerian discovered that value has nothing to tall back
on, in absence of petroleum as the nation was wholly depends on money generated
from crude oil.
But in essence we must thank the present administration for trying
to find out when we left the track of sanity and economics balance and its
advice to the nation there is concrete evidence that the spending pattern of
our people have rationalized to an extent and agriculture, each crop production
are once more assuming their abandoned role Nigerian are now motivates towards
the goals of self sufficient, and the export incentive recently released by
federal government of Nigerian, will no doubt encourage manufactures to
exploits foreign markets to the benefits our external reserves.
1.2 Statement of Problem:
This research work is to address itself on the task to determine
the effective Management of Nigerian external reserves under section 25 of the
Central Bank of Nigerian Act, 1959, as amended, the Central Bank is required to
hold and maintain the country’s foreign exchange reserves inform of the
following card combination there to:
(i) Gold coins and bullions.
(ii) Foreign bank balance in convertible currency.
(iii) Foreign bills of exchange in convertible
(iv) Securities of international financial
institution of not more than 5 years maturity.
(v) International monetary fund financial assets
like the I.M.T gold, trance, the Special Drawing Rights (SDRS) and the I.M.T
oil facility balance.
(vi) Treasury bills of foreign governments.
(vii) Other foreign government or government
guaranteed securities of not more than (10) year’s maturity.
In practice the bulk of reserve maintain of three main items.
Convertible currencies foreign banks. These three have generally accoutered for
over 70 percent of total reserve of the country.
1.3 Objective of the Study:
The essence of the reason why this project is embarked on could be
enumerated as follows viz:
1. To examine the relative importances of the
effective management of Nigerian in the External Reserves.
2. To analyze the behaviour of the effective
management of Nigerian external reserves started in August 1987.
3. To determine the extent to which this effective
management of Nigerian has affected the external reserves.
4. To make recommendation that may be of use to the
monetary authorities towards a more effective/efficient use of this instrument
through the use of appropriate management of Nigerian structure policy.
1.4 Significance of the Study:
This study will be of effective to the Nigerian external reserves
as well as individual reserves this evident in the following ways.
1. It will serve as a tool for managerial decision
when determining whether to continue to funds a particular reserves project or
2. Ability f getting finance will be easily
3. It will ensure prompt repayment of loans
including interest credits to themselves.
4. External reserves will find this research work
very useful since they can now know more credits to themselves.
5. It will guide the policy makers on how to tackle
the various reserves credit-financing problems in identified.
6. To the management at large, this study is of
great importance since any attempt of developing reserve is a biggest.
7. Finally this research work is a useful addition
to the existing literature in the area of management of external reserves and
serve as useful reference.
TERMS AND CONDITIONS APPLY
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