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Full-Text Articles in Social and Behavioral Sciences
Keynote Address, Godwin I. Emefiele Con
Keynote Address, Godwin I. Emefiele Con
Economic and Financial Review
This is the keynote address delivered by the Governor of Central Bank of Nigeria at the Annual Executive Seminar of the Central Bank of Nigeria, holding in Abuja, the Federal Capital Territory. The theme of the Seminar was "Digitisation of Money and Monetary Policy in Nigeria.”
Unofficial Dollarisation And Monetary Policy In Nigeria, Y. Adamu
Unofficial Dollarisation And Monetary Policy In Nigeria, Y. Adamu
Economic and Financial Review
This paper examined the impact of dollarisation on monetary policy in Nigeria, using monthly data spanning 2002 to 2016. The paper adopted the conventional IMF proxy for dollarisation and traced its reactions to changing monetary policy stance. Using the vector autoregression (VAR) model and interbank rate as an indicator of monetary policy stance, the results showed that the size of dollarisation could influence the outcome of monetary policy, though the impact was small. This was evident from the output equations, that inflation did not respond in the first month and responded negatively in the second month. However, from the third …
Interest Rate Dynamics And Real Output Behaviour In Nigeria: A Simulation Analysis, S. Rapu, G. Sanni, D. Penzin, N. Nkang, P. Golit, H. Okafor, E. Ibi
Interest Rate Dynamics And Real Output Behaviour In Nigeria: A Simulation Analysis, S. Rapu, G. Sanni, D. Penzin, N. Nkang, P. Golit, H. Okafor, E. Ibi
Economic and Financial Review
The declining output growth observed from the second quarter of 2014, which led to calls for a more expansionary monetary policy despite rising inflationary pressure, necessitated a reassessment of the impact of interest rate on real output growth in Nigeria. Using a Bayesian Vector Autoregressive (BVAR) model and quarterly data from 2000:Q4 to 2015:Q3, the effect of monetary policy transmission (interest rate dynamics) on real output performance was estimated. Although results of the simulation analysis were somewhat mixed, those of the impulse response functions indicated that positive shocks to monetary policy rate (MPR) produced a negative and small impact on …
Nigeria's Monetary Conditions Index, M. K. Tule, A. M. Isah, P. N. Okafor, I. Pedro, S. A. Ukeje, K. Oji, S. Oladunni
Nigeria's Monetary Conditions Index, M. K. Tule, A. M. Isah, P. N. Okafor, I. Pedro, S. A. Ukeje, K. Oji, S. Oladunni
Economic and Financial Review
The paper aims to construct a monetary conditions index (MCI) for Nigeria to aid the evaluation of the stance of monetary policy. Quarterly data for 91-day treasury bill rate (TBR), real exchange rate (RER), inflation rate (INF), real private sector credit (RCP), and real gross domestic product (RGDP), covering the period 2000Q1 to 2014Q1, were utilised. The period coincided with key reforms in the money and foreign exchange markets, culminating in the adoption of a new monetary policy framework in 2006. Following some econometric diagnostic tests, an aggregate demand function was estimated using the Johansen co-integration technique. The resultant long-run …
Macro-Financial Linkages: Implications Or Monetary And Financial System Stability, Frank Chikezie
Macro-Financial Linkages: Implications Or Monetary And Financial System Stability, Frank Chikezie
Economic and Financial Review
This paper is structured into two parts. Section I discuss the structure of the macroeconomy and the financial industry, and the interactions between monetary policy and the financial system. The section also showed how monetary policy could create the condition for financial stability. Section 2, on the other hand, discuss the implications of macro-financial linkages for monetary and financial system stability with emphasis on how the new credit risk transfer mechanism (securitisation and derivatives) had altered the nature of some macro-financial linkages, with considerable policy implications. The section concluded by referring to the new direction of macro-prudential regulation and the …
Macro-Prudential Regulation And Effective Monetary Policy, Moses K. Tule
Macro-Prudential Regulation And Effective Monetary Policy, Moses K. Tule
Economic and Financial Review
This paper makes a bold attempt to examine some of the issues within the narrow context of monetary policy. Following the introduction, Section 2 examines some conceptual issues including the institutional framework for monetary and macro-prudential policy. Section 3 discusses the objectives and instruments of monetary and macro-prudential policy including indicators of systemic risk, while Section 4 examines at the interaction of macro-prudential with monetary policy and how this could be enhanced. In Section 5, the experiences of other countries with macro-prudential regulation are presented and lessons drawn for Nigeria. Section 6 concludes the paper and provides insights for an …
Asset Prices, Credit Growth And Monetary Policy In Nigeria, Kama Ukpai, Dinchi J. Yilkudi, Hannah Ukeje
Asset Prices, Credit Growth And Monetary Policy In Nigeria, Kama Ukpai, Dinchi J. Yilkudi, Hannah Ukeje
Economic and Financial Review
This paper contributes to the debate on the monetary policy transmission mechanism in Nigeria. The paper explores the impact of monetary policy on credit growth, and whether these credit developments are capable of influencing asset prices (stock prices) in the Nigerian economy. Using the VAR model spanning annual data from 1986 to 2012, the impulse response functions revealed that the relationship between asset prices, captured by the All-Share Index, and monetary policy, is not direct, but operates mainly through the response of inflation to key monetary aggregate. A positive shock to money supply growth would raise credit and inflation which …
Overview Of Monetary Policy In Nigeria, S. N. Ibeabuchi
Overview Of Monetary Policy In Nigeria, S. N. Ibeabuchi
Economic and Financial Review
This article provides and overview of monetary policy which is the instruments at the disposal of the monetary authorities to influence the availability and cost of credit/money M with the ultimate objective of achieving price stability. This overview is with reference to Nigeria.
Exchange Rate Versus Capital Account Liberalization In Nigeria: Some Important Issues, A. E. Akinlo, D. O. Yinusa
Exchange Rate Versus Capital Account Liberalization In Nigeria: Some Important Issues, A. E. Akinlo, D. O. Yinusa
Economic and Financial Review
This article examines the relationship between exchange rate and account liberalization in Nigeria. It focuses on monetary policy design and management in a fast-changing world. It highlights that the need for continuous research into this subject is highlighted by the reliance on monetary policy as the principal tool for economic stabilisation in emerging market economies.
Towards Inflation Targeting Framework For Monetary Policy In Nigeria: The Challenges For Central Bank Of Nigeria, M. Hugman
Economic and Financial Review
This article examines inflation with reference to Nigeria. As an emerging market environment. Part one outlines briefly the underlying mechanisms of inflation-management and general approaches to inflation targeting. Part two focuses on issues that specifically relate to inflation targeting (IT) in emerging markets, including the possible macroeconomic impact of the transition process. Part three considers the sequence and timing of the transition to IT in Nigeria, on the shift in exchange rate management required to achieve long-term price stability. Additionally, Nigeria-specific challenges are also addressed. The paper concludes by noting that both the time frame and coordination for a successful …
Asset Price Movements And Derivatives: Implications For Monetary Policy In Nigeria, Ola Sholarin
Asset Price Movements And Derivatives: Implications For Monetary Policy In Nigeria, Ola Sholarin
Economic and Financial Review
The article highlights the importance of maintaining accurate market value for a wide variety of asset classes. From the perspective of speculators, the author discusses the methodology for identifying undervalued or overvalued assets for taking appropriate bet on such assets. From analysts, hedgers or investors perspective, this paper discusses how financial instruments derivative could be used to protect financial assets and return on such assets against volatility. The author highlights application of the same set of derivative instruments for speculative, regulatory arbitrageurs and other purposes. For the same group, this paper identifies fundamental variables that determine assets' prices in a …
Special Remarks, C.N.O. Mordi
Special Remarks, C.N.O. Mordi
Economic and Financial Review
This the special remarks delivered on the occasion of the opening ceremony of the 2007 CBN Executive Seminar on monetary policy in a changing environment for CBN Executive Staff.
Opening Address, O. A. Demuren
Opening Address, O. A. Demuren
Economic and Financial Review
The opening address at the 2007 CBN Executive Seminar the on monetary policy in a changing environment.
Inflation Targeting As A Tool Of Monetary Management: International Experiences, A. F. Odusola
Inflation Targeting As A Tool Of Monetary Management: International Experiences, A. F. Odusola
Economic and Financial Review
This article seeks to address the main prerequisites and key challenges of implementing inflation targeting across many countries and draws relevant lessons for countries that are contemplating the adoption of IT. To achieve this objective, the rest of the paper has been structured as follows. Following the introduction is part II which examines the theoretical framework for IT while the review of international experiences is contained in part III. Contemporary issues and challenges are considered in part IV while recommendations and conclusion are the focus of part V.
Monetary Policy And Economic Growth: Theoretical And Conceptual Issues, D. G. Omotor
Monetary Policy And Economic Growth: Theoretical And Conceptual Issues, D. G. Omotor
Economic and Financial Review
This article seeks to address the relationship between monetary policy and economic growth by enunciating the conceptual and theoretical issues that relate to monetary policy and economic growth. The paper is divided into five sections. Following the introduction in section 1, section 2 discusses the objectives of monetary policy. The monetary transmission mechanisms are schematically explained in section 3. Section 4 reviews the performance assessment of monetary policy and its framework in Nigeria. The constraints of monetary policy management in Nigeria are espoused in section 5. The final section concludes the paper.
Bank Lending Behaviour And Output Growth: An Empirical Analysis With Implication For Monetary Policy Formulation In Nigeria, Joseph O. Nnanna
Bank Lending Behaviour And Output Growth: An Empirical Analysis With Implication For Monetary Policy Formulation In Nigeria, Joseph O. Nnanna
Economic and Financial Review
Preliminary findings from the empirical analysis show that the banking sector has not supported real sector output growth in its lending policy. The combined effects of risk aversion and infrastructural problem in the real sector represent serious constraints on credit flow to the private sector and the sectors declining marginal product of capital. Overall, while the banking sector has indeed, succeeded in deposit mobilization, it has nevertheless, not done a good job in its intermediation functions. The analysis further reveals the presence of policy distortions in the system, and its negative influence on banks' lending behavior. The need to address …
Monetary Policy And Commercial Bank's Performance In Nigeria: Some Theoretical And Empirical Extensions, Michael O. Nyong
Monetary Policy And Commercial Bank's Performance In Nigeria: Some Theoretical And Empirical Extensions, Michael O. Nyong
Economic and Financial Review
This study provides richer insights into the performance of commercial banks in Nigeria using more indicators and more refined methodologies. It sheds more light on the critical factors responsible for differential performance among the banks. The high levels of profitability declared by banks in the light of their high levels of under-capitalization imply excessive risk-taking which is incompatible with prudent banking behaviour. We also found that the size of banks exert a positive and statistically significant effect on their performance. The result suggests that the promotion of large banks may be in the interest of maintaining a safe and sound …
Monetary Policy And The Performance Of Commercial Banks In Nigeria, Okorie A. Uchendu
Monetary Policy And The Performance Of Commercial Banks In Nigeria, Okorie A. Uchendu
Economic and Financial Review
The purpose of this study is primarily to investigate the impact of monetary policy on the performance of the commercial banking industry in Nigeria. An analysis of the industry data showed a strong relationship between monetary policy instruments and commercial bank profitability measures, suggesting that appropriate monetary and banking policies are important factors to the continued stability and profitability of the commercial banking industry. More importantly, the evidence of oligopolistic competition in the commercial banking industry involving the three big commercial banks raises questions on their influence on effective transmission of monetary policy in Nigeria, role as financial intermediaries and …
The Conduct Of Monetary And Banking Policies By The Central Bank Of Nigeria, V. A. Odozi
The Conduct Of Monetary And Banking Policies By The Central Bank Of Nigeria, V. A. Odozi
Economic and Financial Review
Monetary and banking policies are usually the responsibilities of the Monetary Authorities which comprise the Central Bank and the Central Government. In Nigeria, while the Central Bank exercises primary responsibilities for initiating, articulating, implementing and appraising such policies, the Bank's proposals are subject to the approval of the Federal Government. To facilitate the understanding of the conduct of monetary and banking policies by the CBN, it is necessary to articulate the theoretical framework of monetary policy, the CBN-monetary management techniques, as well as the policy measures adopted since 1986 to reform and strengthen -the banking system.
Monetary Policy In Nigeria In The 1980s And Prospects In The 1990s, M. O. Ojo
Monetary Policy In Nigeria In The 1980s And Prospects In The 1990s, M. O. Ojo
Economic and Financial Review
The main aim of the paper is to review the evolution and performance of monetary policy in Nigeria in the 1980s. Monetary policy objectives remained broadly the same throughout the review period· simulation of output and employment, promotion of stable prices and support of external equilibrium The direct monetary controlframeworkentailingtheprescripttonqfaggregatecreditceilings,selectivecreditcontrolsandregulatton of interest rates, was prominently used between 1980 and 1985, and although was generally retained from 1986, there was some degree of liberalizatton in line with the general philosophy of the Structural Adjustment Programme. Monetary policy faced increasing difficulties due in large part to the Inadequacy of the control framework …
Financial Deregulation, The Demand For Money And Monetary Policy In Australia, By P.A.V. Swamy And George S. Tavlas Imf Staff Papers, Vol. 36, No. 1, March 1989, F. O. Odoko
Economic and Financial Review
The paper covers an important subject matter that is of relevance to the N"igerian economy in 'View of our recent experiences, with deregulation in general and in particular of the financial sector. The experience of the Australian financial system in the era of regulation was quite similar to the Nigerian experience. The sprouting and blossoming of finance houses in the face of strict regulation prior to policy reforms is a case in point. Thus, useful lessons can be drawn for our benefit through a thorough review of this paper. The paper examines the factors which informed the process of financial …