THE ROLE OF THE CENTRAL BANK OF NIGERIA IN THE DEVELOPMENT OF MONEY MARKET
ROLE, CENTRAL, BANK, NIGERI DEVELOPMENT, MONEY, MARKET
The Role Of The Central Bank Of Nigeria In The Development Of Money Market, -abstract
This Research Work Will Take A Look At The Role Of The Central
Bank Of Nigeria ...
This research work will take a look at the role of the central
Bank of Nigeria in the development of money market. It will also cover the
constraints the bank faces in implementing the government programmes. The role
of Central Bank of Nigeria in developing the Nigeria economy cannot be over
stressed. The central bank being the bankers’ bank and lender to last resort is
mirror that reflects the nation’s economy. The research made use of primary
data through a field survey of the staff of account department of CBN. The oral
interviews, however was aimed to further obtain same details which are not
ascertainable through the questionnaire. The researcher reached on books and
documents made available to them by the heads of account and internal audit
department. The secondary data could be obtained from libraries, source nails,
newspaper and materials relevant to the research. It has been possible for the
researcher to discover the need and implication of CNB in ensuring monetary
expansion in the economy and effective operation of the money market.
1.1 Historical Background
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research Hypothesis
1.5 Scope and Limitation of the study
1.6 Significance of the study
1.7 Definition of
2.0 Literature Review
of Central Bank in Nigeria
of Money Market
of Central bank of Nigeria
of Central Bank in Money Market
3.0 Research Methodology
3.1 Research Design
3.2 Determination of Sample Size
3.3 Population of Study
3.4 Sample of the study
3.5 Method of Investigation
3.6 Method of Data Analysis
4.0 Presentation and Analysis of Data
4.1 Presentation and Analysis of
5.0 Summary of Findings, Conclusion and
5.1 Summary of Findings
1.2 HISTORICAL BACKGROUND
The central bank of Nigeria was established because of the
enractoristic and difficulty of the monetary system. In this case, the currency
or legal tender obtained in the colonizes board so the development of
indigenous banking and growth in the financial mechanism would not be achieved
without the assistance of a central bank institution in west Africa currency
board, which was established to finance the need of the expert trade of
repatriate fixing in west African for the objective of issuing a spade convertibility
a currency providing team whereby the colonial government might impendent
currency with Nigeria currency was tied on the spoon string of the
British bound. There was no room for monitory management.
According to Professor W.C Uzoaga (1976) in his book tittles
“Money and Banking in Nigeria” the system was operationally right and
institutionally limited, it result that the board lacked any power to intimate
and execute monetary policy. It also did nothing to train African institution
which resulted that West African currency board had no discretionally power
over the total amount of money, and would not perform any banking functions.
The effects were that banking habit in the country was not developed. Demand
deposit constituted loss than half the size of the currency e.g nearly half of
time deposited were held by government organization for the indigenous sector,
banking was even has significant because an over whelming put of deposit was
held by Europeans and Europeans firms. No local investments out less where
developed, because it invested all its reserves in starting oversea in wisdom.
The central bank of Nigeria was finally established by CBN
ordinance in 1958, to issue legal lender currency in Nigeria to maintain
external reserve to safeguard the international value of the currency and to
promote monetary stability and a sound financial structure in Nigeria. Also, to
act as bankers and as financial advice to the federal government.
According to Professor E.C. Nwankwo (1989) in his book titled “Nigeria
Financial System” the Nigeria money was established by the central bank of
Nigeria, to enable government to recoup their short fall in revenue. This
period the government has been experiencing increasing short falls in revenue
as a result of this glut in the world and market.
1.2 STATEMENT OF THE PROBLEMS
The Central Bank of Nigeria according to Professor G.O Nwankwo
(1989) in his book titled “Nigeria Financial system” as on the function to
develop the Nigeria money market. The problem to the investigated here are the
extent to which the bank of Nigeria has performed is role towards having a
higher achievement in developing money market is usually characterized by the
availability of proper investment in the market e.g. cash call money, treasury
1.3 OBJECTIVE OF THE
The project is aimed to
achieve the following solutions to the central bank of Nigeria through the
government, with a view to implementing those project that will help the
development of a highly organized money market in Nigeria.
1.4 RESEARCH HYPOTHESIS
CBN not make provision of central bank credits
to most financial institution.
CBN make provision of central bank credits to
most financial institution.
The money market amnesty does not rely in
Central does not financial purposes.
money market amnesty relies in central
bank of Nigeria for financial purposes.
CBN actually does not promote monetary
stability and a sound financial system in Nigeria.
H1: CBN actually promote
monetary stability and a
sound financial system in Nigeria.
There is not strong implementation of credit
instrument of the CBN in commercial Banks.
There is no strong implementation of credit
instrument of CBN in commercial Banks.
1.6 SIGNIFICANCE OF THE STUDY
The significance of the study offers relevant information about
the role of central bank in the development of money market, which contributes
immensely to the economic development.
1.7 DEFINITION OF TERM
a. Central Bank: this
is an apex financial institution which
manage the cost of money, the volume of money available within the
economy, and the direction of money and credit following in the same economy,
and to realize the designed monetary and credit objectives.
b. Commercial Bank: Commercial bank is an institution that accepts
cash, near cash asset and other credit, and also makes payment on demand using
its money market institutions.
c. Discount House: There
are financial institution whish
pays the face value of a bill upon materially to the holder of
such bill discounting.
d. Money Market:
This is the arrangement whereby
borrowers and lenders of money, on short term basis are brought
into contractual relationship.
e. Capital Market: This
is a market for long term capital.
It supplies investors with the opportunity to borrow and lend
money on medium long term basis.
f. Stock Exchange Market:
This is a market that
facilitates buying and selling shares stock bond debenture and
G. Call Money: This
is an arrangement whereby the
commercial banks borrow money from one another on over night basis
or short notice.
H. Treasury Certificates:
This is the certificates used for
raising money from the money market by government for duration of
between 1 and 2 year.
TERMS AND CONDITIONS APPLY
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