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Project Topic:

PROBLEMS IN MONETARY POLICY IMPLEMENTATION BY CENTRAL BANK OF NIGERIA (CBN)

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 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   115 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

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CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

A policy is a statement of basic principles that provides a framework in which performance is measured. One of the principal responsibilities of the central bank of Nigeria (CBN) is the formulation, monitoring and execution of monetary stability and economic development as well as ensuring sound financial system.

 

The central bank of Nigeria employs various instruments in caring out these responsibilities. Before 1992, the CBN was under the federal ministry of finance. This has change presently, central bank reports directly to the presidency under the central bank of Nigeria degree.

 

The CBN carries out this responsibilities on behalf of the federal government of Nigeria under the status of the central bank of Nigeria Act of 1958 and banking Act of 1967 which have been replaced with CBN Degree No. 24 of 1991 and Bankers and other financial institutions Decree (BOFID) NO. 25 of 1991.  

 

In formulating executing monetary policy, the government of the CBN is required to make proposals to the president of the federal republic of Nigeria who has the final power to accept or amend such proposals. It is after the presidency has approved it that the CBN is monetary policy proposals are made as an integral part of the federal government annual budget which combines to approve monetary policy.

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