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Full-Text Articles in Economics
Special Remarks, Kingsley Obiora
Special Remarks, Kingsley Obiora
Economic and Financial Review
This is the special remark delivered by the Deputy Governor, Economic Policy at the 28th edition of the CBN Executive Seminar, jointly organised by the Research and Capacity Development Departments for Executive staff of the Bank. The theme of the Seminar is, “Digitalisation of Money and Monetary Policy in Nigeria”
Welcome Address, Michael A. Adebiyi
Welcome Address, Michael A. Adebiyi
Economic and Financial Review
This is the Welcome Address presented by the Director of Research, Central Bank of Nigeria during the 28th Edition of the CBN Executive Seminar held at Transcorp Hilton, Abuja. The year’s theme: ‘Digitalisation of Money and Monetary Policy in Nigeria’ was motivated by the need to keep pace with monetary policy design and implementation in the digital age.
Goodwill Message, Muhammad M. Bello
Goodwill Message, Muhammad M. Bello
Economic and Financial Review
This is the keynote address delivered by the Honourable Minister of Federal Capital Territory during the Central Bank of Nigeria Executive Seminar, taking place in the city of Abuja. The theme of the seminar was “The Digitisation of Money and Monetary Policy in Nigeria."
Pass-Through Effects Of Standing Facilities On Bank Interest Rates In Nigeria, Victor Ezeora Eleam, Chinyelu Gloria Ekwom, Chibueze Charles Ariolu, Chukwubuzo Jackson Umebali, Adewale Timothy Balogun
Pass-Through Effects Of Standing Facilities On Bank Interest Rates In Nigeria, Victor Ezeora Eleam, Chinyelu Gloria Ekwom, Chibueze Charles Ariolu, Chukwubuzo Jackson Umebali, Adewale Timothy Balogun
Economic and Financial Review
The paper investigates the pattern of pass-through effects of standing facilities rates on commercial bank retail interest rates in Nigeria. Monthly data spanning 2007:06 to 2019:12 and the Gregory-Hansen cointegration method that accounts for structural breaks are used in the empirical analysis. The adjustment parameters for the standing deposit and lending facilities are found to be significant, but with a low speed of adjustment. This provides some evidence on the nature of the interest rate channel of monetary policy transmission in the country. Furthermore, the study could not confirm asymmetry in the adjustment of retail rates to their long-run equilibria. …
An Empirical Analysis Of The Effect Of Monetary Policy On The Manufacturing Sector In Nigeria, M. Ali, H. Aliero, M. Abubakar
An Empirical Analysis Of The Effect Of Monetary Policy On The Manufacturing Sector In Nigeria, M. Ali, H. Aliero, M. Abubakar
Economic and Financial Review
This study examined the effect of monetary policy on the manufacturing sector in Nigeria from 1970 to 2012 using Autoregressive Distributed Lag (ARDL) bound testing approach. Exchange rate was found as the only channel of monetary policy transmission with significantly negative effect on the manufacturing sector. This implies that manufacturing firms largely rely on foreign inputs for production and do not depend on the banking system for funding. The study, therefore, recommends indigenous technology and financial system development to reduce dependence on imported inputs and facilitate access to more funds.
Effects Of Monetary Policy On The Banking System Stability In Nigeria, A. Bamidele, J. Musa, L. Bala-Keffi, O. Owolabi, S. Imam
Effects Of Monetary Policy On The Banking System Stability In Nigeria, A. Bamidele, J. Musa, L. Bala-Keffi, O. Owolabi, S. Imam
Economic and Financial Review
The paper examined the effect of monetary policy on banking system stability in Nigeria. The main objective was to evaluate how monetary policy affected the banking system stability during the global financial crisis in Nigeria. Static and dynamic error correction models were estimated using monthly data from January 2007 to June 2013 and the error correction model was found most efficient. The banking system stability index was computed using banking soundness index, banking vulnerability index and economic climate index. The results showed that increase in monetary policy rate, depreciation of nominal exchange rate and rising inflation rate negatively affected the …
Interest Rate Elasticity Of Private Sector Credit In Nigeria, A. Bamidele, K. O. Oji, E. S. Smith, L. S. Jimoh
Interest Rate Elasticity Of Private Sector Credit In Nigeria, A. Bamidele, K. O. Oji, E. S. Smith, L. S. Jimoh
Economic and Financial Review
This study estimated the interest rate elasticity of private sector credit in Nigeria using the Vector Error Correction mechanism. The variables specified included real private sector credit. real GDP. Prime and maximum lending rates, exchange rate, 9)-day Treasury bill rate, inflation rate and all share index of the Nigerian Stock Exchange. The data utilised covered the period: 1998 Q1 to 2013 Q4. Granger causality tests were performed, and the co-integration analysis of the Johansen system-wide procedure was employed. The results indicated thot private sector credit was fairly interest inelastic in terms of both maximum and prime lending rates. The estimated …
Monetary Policy And Asset Prices In Nigeria, M.K. Tule, P. Ogiji, G. Okorie, D. Mbaka
Monetary Policy And Asset Prices In Nigeria, M.K. Tule, P. Ogiji, G. Okorie, D. Mbaka
Economic and Financial Review
This paper attempts to contribute to the debate on the linkages between monetary policy and asset prices in the woke of the recent global financial crisis. The study employs vector error correction (VEC) mode! on Nigerian weekly data from January 2007 to October 2013. A pair-wise granger causality test indicated a unidirectional causality from asset prices to monetary policy. Exchange rate at lag one was negatively related to the All Share Index. suggesting that exchange rate appreciation is likely to lead to excessive appreciation in asset prices. The results further indicated a positive relationship between financial system stability and asset …
Empirical Exposition Of Monetary Policy Under Fixed And Managed Float Exchange Rate Regime: Any Lesson For Nigeria, F.O. Egwaikhide, M. Oyinlola, O. Adeniyi, D. B. Olanipekun
Empirical Exposition Of Monetary Policy Under Fixed And Managed Float Exchange Rate Regime: Any Lesson For Nigeria, F.O. Egwaikhide, M. Oyinlola, O. Adeniyi, D. B. Olanipekun
Economic and Financial Review
The paper empirically investigated the relationship between monetary aggregates and the exchange rate under alternative exchange rate regimes in Nigeria. Using data spanning 1961 to 2013 to estimate vector auto-regressive (VAR) models, a number of findings ensued.
Analysis Of Monetary Policy Decision Making Among Heterogeneous Monetary Policy Committee (Mpc) Members At The Central Bank Of Nigeria, C. C. Ezema, O. J. Odonye, T. S. Shitile, O. O. Afiemo
Analysis Of Monetary Policy Decision Making Among Heterogeneous Monetary Policy Committee (Mpc) Members At The Central Bank Of Nigeria, C. C. Ezema, O. J. Odonye, T. S. Shitile, O. O. Afiemo
Economic and Financial Review
This paper provided an empirical analysis of policy-makers' voting patterns on interest rates in Nigeria. Employing a (pooled) Taylor rule and using real-time data obtained from published personal statements of monetary policy committee members at the Central Bank of Nigeria (CBN), the paper tests for preference heterogeneity among MPC members. The aggregate reaction function as well as individual reaction functions for MPC members were used to tests whether there is a difference between the voting patterns of internal members and that of external members of the committee. Our results suggest evidence of heterogeneity among MPC members and that the voting …
Effect Of Monetary Policy On Agricultural Sector In Nigeria, Elias A. Udeaja, Udoh A. Elijah
Effect Of Monetary Policy On Agricultural Sector In Nigeria, Elias A. Udeaja, Udoh A. Elijah
Economic and Financial Review
The study examinee the effect of monetary policy on agricultural sector in Nigeria, utilizing time series data for the periods spanning from 1970 to 2010. The study captures both monetary and non-monetary policy variables such as lending rate, commercial banks credit to agriculture, exchange rate, government expenditure in agriculture and inflation rate in examining the effect of monetary policy on agricultural output. The methodology adopted is the Auto- Regressive Distributed Lag (ARDL) Bound Testing Approach. The results obtained shows that exchange rate and government expenditure had positive and significant effect on agricultural output and, hence agricultural sector in Nigeria. It …
An Examination Of The Structural Inflation Dynamics In Nigeria, O. J. Odonye, S. O. Odeniran, A. O. Oduyemi, O. J. Olaoye, K. J. Ajayi
An Examination Of The Structural Inflation Dynamics In Nigeria, O. J. Odonye, S. O. Odeniran, A. O. Oduyemi, O. J. Olaoye, K. J. Ajayi
Economic and Financial Review
This study examines the dynamics of inflation in Nigeria, including the structural evolution as well as the direction of its movement with a view to designing appropriate policy measures to rein in the inflationary pressures. The study utilized quarterly data from 1970(1) to 2013 (4) except for Bureau de Change (BDC) premium where the duration was 1991(1) to 2013 (4) based on Auto Regressive Distributed Lag (ARDL) model. The results show that structural factors like budget deficit, rainfall, variation in export, exchange rate premium have profound influence on movement in CPI in Nigeria during the period.
Is Monetary Policy Responsive To External Reserves?: Empirical Evidences From Nigeria, Baba N. Yaaba
Is Monetary Policy Responsive To External Reserves?: Empirical Evidences From Nigeria, Baba N. Yaaba
Economic and Financial Review
The global economy has witnessed extraordinary boost in the accumulation of external reserves, following the Asian financial crisis of the 1990s. External reserves increased sharply from US$1.2 trillion in 1995 to over US$10.0 trillion in January 2012. Developing countries increased their share from 30.0 per cent in 1990 to 67.0 per cent in 2011. Nigeria is not left out in this trend, as external reserves grew from US$5.5 billion in 1999 to US$34.68 billion in March 2012, representing over 530 per cent increase within the period. This placed Nigeria as the 44th largest reserves holder in the world. Reflecting on …
The Dominant Channels Of Monetary Policy Transmission In Nigeria: An Empirical Investigation., Mbutor O. Mbutor
The Dominant Channels Of Monetary Policy Transmission In Nigeria: An Empirical Investigation., Mbutor O. Mbutor
Economic and Financial Review
The paper aims at identifying the dominant channels of monetary policy transmission in Nigeria. The standard vector autoregressive methodology was adopted. The inferences from the study shows that the lending rate provides the strongest nexus for the propagation of monetary policy impulses in Nigeria.
Risk Exposure And Management In Cross-Border Banking., Sheriffdeen A. Tella
Risk Exposure And Management In Cross-Border Banking., Sheriffdeen A. Tella
Economic and Financial Review
The title of this paper connotes the fact that risk-based supervision and inflation targeting are mutually inclusive policies that have to be carried out simultaneously. This is not true. The two frameworks can be adopted at the same time but they do not need to go pari passu. To that extent the paper can be regarded as two-in-one. In this connection, the two frameworks are treated separately but within the context of a single paper. We looked at their challenges and prospects in monetary policy formulation and implementation in the Nigerian economy. The rest of this paper is divided into …
Special Remarks At The Seminar On: "Financial Sector Developments: Challenges For Risk Based Supervision And Effective Monetary Policy Implementation, C. N. Mordi O.
Economic and Financial Review
This is the Special remarks.at the opening ceremony of the 16th edition of the annual in-house Executive Policy Seminar organized by the Research Department, in collaboration with the Human Resources Department. As usual, the seminar is aimed at availing the Executives of the Bank the opportunity of brainstorming on contemporary economic issues in the economy and the globe at large. In this respect, the theme of this year's Seminar "Financial Sector Development: Challenges for Risk-Based Supervision and Effectiveness of Monetary Policy Implementation" could not have come at a more opportune time, given the current financial meltdown ravaging global markets. This …
Asset Price Movement And Derivatives: Implications For Risk-Based Supervision And Effective Monetary Policy., Biodun Adedipe
Asset Price Movement And Derivatives: Implications For Risk-Based Supervision And Effective Monetary Policy., Biodun Adedipe
Economic and Financial Review
The consideration of asset price movements and monetary policy has attracted a lot of attention in the last few decades, as asset prices moved upwards significantly and there arose the general perception that there are bubbles in those prices. The argument revolves around the role that monetary policy can play in this whether it can be used to prick the bubble before it is due for natural burst, or it can be designed and implemented in such manner as to prevent bubbles to grow in the first place.
Welcome Address, C. E. Nkwonta
Welcome Address, C. E. Nkwonta
Economic and Financial Review
This is the welcome address for the seminar on "Monetary Policy in a Changing Environment" for CBN Executive Staff.
Keynote Address By S. O. Alade, Sarah O. Alade
Keynote Address By S. O. Alade, Sarah O. Alade
Economic and Financial Review
Keynote Address by Dr Sarah Alade, the Deputy Governor (Economic Policy), Central Bank of Nigeria at the CBN Executive seminar on monetary policy in a changing environment for CBN Executive Staff.
The Industry Effects Of Monetary Policy In The Euro Area By Gert Peersman And Frank Smets: A Review, Ade O. Adenuga
The Industry Effects Of Monetary Policy In The Euro Area By Gert Peersman And Frank Smets: A Review, Ade O. Adenuga
Economic and Financial Review
The article sheds some light on the question of whether monetary policy has stronger effects on economic activity in recessions than in expansions. It analyzed which industries are relatively more affected in downturns. The estimation was done by examining eleven manufacturing industries in seven countries of the euro area. The article is related to the works of Garcia and Schaller,1995; Kakes, 1998; Dolado and Maria-Dolores, 1999; and Peersman and Smets, 2001.
Determinants Of Commercial Bank Interest Rate Spread In A Liberalized Financial System: Empirical Evidence From Nigeria (1989-2000), C.I. Enendu
Economic and Financial Review
This paper provided empirical evidence on the determinants of interest rate spread in a liberalized financial system for the period 1989-2000, using selected banks in Nigeria. Ex-ante interest rate spread equations were estimated using bank balance sheet and income statement as well as macroeconomic data. The results showed that macroeconomic and monetary policy/financial regulation factors were more important determinants of commercial banks' interest spread than bank level factors, Inflation rate, GDP, .financial deepening, cash reserve requirement, risk premium, treasure bill rate, loan asset quality, liquidity risk and non interest expenses were the most important.factors that affected commercial banks' interest rate …
Lessons From Nigeria's Recent Monetary And Fiscal Policy Experience, G. O. Okah
Lessons From Nigeria's Recent Monetary And Fiscal Policy Experience, G. O. Okah
Economic and Financial Review
The paper examined, together, the impact of monetary and fiscal policy measures with a view to judging the actual results against the stated policy objectives. The purpose of such exercise would be to provide some basis for drawing useful lessons which will serve as a guide for future design of macro-economic management and control strategies that are more relevant to the Nigerian economic environment. To do this, one needs some form of discussion framework as is done in Part I of this paper. In Part II recent policy objectives and the measures taken to pursue those objectives are summarised. An …