Economics Commons^™

Allocation And Management Of Foreign Exchange: The Nigerian Experience., O. K. Anifowose

Bullion

This paper intends to discuss and review the various strategies adopted in the management of Nigeria's foreign exchange resources. Part I of the paper reviews the systems adopted before SAP (Structural Adjustment Programme) period as well as those practised from SAP to end of 1993. Part ll considers in broad terms the 1994 foreign exchange resource management policies. While Part lll describes the foreign exchange allocative mechanism adopted in 1994. Finally, part lV provides the summary and conclusion of the paper.

Sources And Management Of External Reserves In Nigeria., Newman C. Oputa

Bullion

Reserves are all those foreign assets of a country held by the monetary authorities which can be mobilized at period of external imbalances with else and certainty. External reserves are held in the form of "earning assets" notably government's foreign security or in the form of "non earning" liquid assets like gold bars in the vault of Central Banks. ln Nigeria the composition of the extremal reserve consists of gold, IMF reserve tranche, Special Drawing Rights (SDRS) and convertible currencies, The major sources of extremal reserves are derivable from the components of foreign exchange inflows which include: receipt from petroleum, …

Towards A Viable Rural Financial Market In Nigeria., O. O. Akanji

Bullion

This paper analyse the weakness of existing rural financial markets, survey the existing formal and informal financial markets in rural areas, their financing mechanisms, strengths and weaknesses, and propose an agenda from a viable rural financial market in Nigeria. It is divided into four parts. Part 1 presents a critique of the operation of formal financial institutions in rural markets. Part 2 identifies the existing informal financial markets, noting their structure and financing mechanisms and the overall influence on the rural people. Part 3 analyses the challenges and prospects of rural financial markets, while Part 4 presents the conclusion and …

Issues On Macro-Economic Management In Nigeria., Gianni Zanini

Bullion

This paper examines the main source of inflationary pressures, and established the source of destabilization of the exchange and interest rates as the Budget deficit which has been increasing at an unsustainable pace since 1990. It also ascertain that stabilizing the economy will require a significant and sustained budget surplus with no additional domestic bank borrowing. It states that economy stabilization will also require a liberalization of foreign exchange and credit markets.

The Economics Of Controls And Deregulation: The Nigerian Case Study, M. O. Ojo

CBN Occasional Papers

The abandonment of economic controls and the adoption of deregulatory measures in the mid-1 980s were expected to usher in economic recovery and sustained growth in Nigeria. In the wake of the apparent failure of the adopted policy regime to attain that primary goal, there Is a need to investigate the efficacy of the policy instruments adopted and the fundamental causes of persistent economic downturn. The paper reviews Nigeria’s experiences in the use of economic control tools and measures of liberalisation, as well as the international evidence. A major finding of the study is that the programme of deregulation was …

An Appraisal Of Electricity Supply In Nigeria And The Privatisation Option, E. I. K. Sule, C. M. Anyanwu

CBN Occasional Papers

Incessant electric power cuts in most parts of the country has become a normal feature of electricity supply throughout Nigeria. The power outages cause much inconvenience and economic losses to all and sundry. This study has shown that the most critical factor behind the incessant power failure is the problem of inadequate funding of the industry at a time it was forced to accommodate rapid expansion. Other factors include lack of autonomy, inefficiency, poor organization as well as lack of skilled manpower. The paper has examined these problems on the basis of which suggestions are made on how the worrisome …

Africa's Debt Burden In Historical Perspective, M. O. Ojo

Economic and Financial Review

The purpose of the paper is to outline the profile of Africa's debt burden since the early 1980s. The paper reviews the economic performance of African countries, trends in their external debt stock and structure as well as their debt burden measured by the conventional debt ratios. It also undertakes a review of the causes of increased debt burden of African countries. The major findings are that deteriorating economic performance in Africa since the early 1980s was accompanied by increased external debt burden fcatu1·ing lower export earnings, reduced income growth and mounting (paid and unpaid) external debt obligations. Some of …

Financing State Government Projects Through The Capital Market: Problems And Prospects, B. S. Adebusuyi

Economic and Financial Review

The paper discuses the problems and prospects of raising funds from the capital market to finance state government projects. The need for viable alternatives to finance government projeds had not only been a topical issue but one that had engaged the attention of policy makers. This has arisen because conventional sources of government project financing have been proving increasingly inadequate. From a short review of available options for financing government projects such as statutory allocations, internally generated revenue, bank and non-bank domestic borrowings, donations and taxation, the paper discusses the relative advantages of capital market financing of government projects, principal …

Factors Affecting The Supply Of Paper In Nigeria, A. P. Awoseyila, K. M. Obitayo

Economic and Financial Review

This study reviews the developments in the paper industry with special focus on the supply and factors affecting the supply of paper in Nigeria. The study appreciates the strategic role of paper on socio-economic activities and is concerned with the downward trend in the supply of paper to the market. The data show the low capacity utilization and heavy revenue losses sustained over the years by the local pulp paper mills as well as the declines in the import supply of paper due to the scarcity of foreign exchange. The study attributes the factors constraining the supply of paper to …

Foreign Private Investment In Nigeria - 1992, Central Bank Of Nigeria Cbn

Economic and Financial Review

The net flow of foreign private investment into the Nigerian economy in 1992 witnessed a substantial increase over the preceding year's level of 141,808.0 million to t48,264.2 million. The phenomenal jump was attributable to the renewed confidence in the economy by foreign investors. Gains from the current economy restructuring of the economy and the movement towards democratic government during the year were believed to be taking firm hold. Traditional investment flow components such as unremitted profits and changes in foreign share capital, which used to account for the substantial net inflows, dropped in 1992 from the previous year's levels. Trade …

Central Bank Of Nigeria Monetary, Credit, Foreign Trade And Exchange Policy Guidelines For 1994 Fiscal Year: Monetary Policy Circular No. 28., Central Bank Of Nigeria Central Bank Of Nigeria

Bullion

This paper contains the outlines of the monetary, credit, foreign trade and exchange policy guidelines for banks and other financial institutions in Nigeria during fiscal 1994. The circular is structured into three sections and Appendix. Section one reviews developments in the economy and the policy environment in 1993 and thus provides the background to the policy measures for 1994. Section two details the monetary and credit policy measures and guidelines for banks and other financial institutions. The foreign trade and exchange policy measures for 1994 are highlighted in section three and list of prohibited import and export items is provided …

"Our Mission' - General Sani Abacha, Gcon, Fss, Dss, Mni, Commander -In-Chief Of The Armed Forces Of The Federal Republic Of Nigeria: Being The 1994 Budget Address., Sani Abacha

Bullion

The 1994 Budget Address manuscript titled "Our Mission" read by the General Sani Abacha, GCFR. The foregoing constitute the historical context of current efforts to charting relevant and appropriate direction for Nigeria's socioeconomic, The policy direction for 1994 must, therefore, aim at the refashioning of present ways of doing Government business.

Governor's Speech At The Official Naming Ceremony Of "Samuel Asabia House"., Paul Ogwuma

Bullion

The paper contains the speech of the Governor of Central Bank of Nigeria at the official naming ceremony of the First Bank of Nigeria Head Office in honour of the late Chief Dr. Samuel Asabia, the first indigenous Managing Director and Chief Executive of FBN PLC.

The Devaluation Of The Cfa Franc: Implication For The West African Intra-Regional Trade And The Nigerian Economy., E. U. Olisadebe

Bullion

This article discusses the CFAF devaluation which was long-resisted and how it became inevitable after France indicated her intention in September, l993 not to assist the depressed economies of the CFA states if they backed out of IMF supported structural adjustment Programme. The IMF had insisted on devaluation as a condition for supporting any adjustment programme in CFA countries arguing that the devaluation would encourage investment and make exports more competitive thereby improving the balance of Payments of the CFA countries.

Structure Of The Nigerian Economy: Being The Text Of A Paper Presented On 18th April, 1994 At A Seminar On The Management Of Nigerian Economy Held At The Cbn Training Centre, Lagos., F. U. Ezeuduji

Bullion

This paper examines various dimensions of Nigeria's structure, as well as its components and interrelatedness with a view to identifying the potentials for, and constraints to development. The paper is divided into four sections, ln section one, the resource base of the Nigerian economy is reviewed. This is followed in Section two by on appraisal of the pattern of Nigerian economic activities, given the structure of the resources. The third section examines the major structural weaknesses of the Nigerian economy while the fourth and final section summarises and concludes the paper.

Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 1994, Central Bank Of Nigeria

CBN Annual Report

In 1994, Nigeria faced economic challenges such as declining GDP growth, inflation, and a weakened external sector due to expansionary fiscal and monetary policies, political unrest, and labor issues. Despite this, the global economy saw stronger recovery in industrialized countries and developing regions like Asia and Latin America. The Nigerian economy struggled with slow growth, manufacturing decline, rising inflation, large budget deficit, and weakened external sector performance. Efforts to stabilize the exchange rate were hindered by differences between official and unofficial market rates. Internationally, there were improvements in the world economy with higher growth rates in developed and developing countries. …

State Of The Economy: Central Bank Of Nigeria Perspective, Ogwuma P. A

Bullion

This paper reviews broadly developments in the real, monetary and financial and external sectors of the economy from 1991 to 1994. It highlights the problems confronting policy makers and put forward some recommendations for consideration. The overall performance of the Nigerian economy during the past three years has been characterized by declining growth rate of GDP in turn a reflection, in the main, of the negative impact of the macroeconomic and financial imbalances. The major factor underlying the adverse movements in macroeconomic variables since 1991 has been the rapid growth in CBN credit for the financing of Federal Government's fiscal …

Restructuring The Nigerian Financial System For Economic Resuscitation., S. B Falegan

Bullion

The article provides a detailed analysis on the stages of restructuring the Nigerian Financial System for Economic Resuscitation during the period of 1985-1993 .

Review Of Policy And Developmental Objectives In Agricultural And Agro-Based Industrial Financing., G.O. Evbuomwan, E.U. Ukeje, F.A. Afelumo

Bullion

This paper reviews and appraise the role of government credit policies in the development of agriculture and agro-based industries in Nigeria. The paper is organized into five sections. Section I reviews the objectives of agricultural development and its role in overall economic development. Section II highlights some major policy measures designed to achieve stated agricultural and agro-industrial development objectives, the major sources of financing and institutions established to support agricultural and agro-based industries are appraised in Section III, while Section IV contains the lessons of experience and implications for policy. Section V summarizes and concludes the paper.

Restructuring The Nigerian Financial Sector For Economic Resuscitation., V.A Odozi

Bullion

This paper examines major developments in the Nigerian financial sector and discusses efforts made so far by the authorities to restructure the sector so as to enhance its efficiency. Major Developments in the Financial Sector The Structural Adjustment Programme (SAP) which was adopted in 1986 was the nation's inevitable response to the suffocating effect of the external debt burden on the Nigerian economy, the escalating fall in agricultural productivity, and undue dependence on petroleum as a foreign exchange earner. The paper noted that the increase in the number of banks resulted in competition for bank deposits and other patronages from …

Modern Techniques Of Bank Administration, C. E. Agene

Bullion

This paper examines the basic theories and concepts underlying bank management. The paper noted that portfolio management, especially the funds management aspect, represented the core of sound bank planning and financial control. The paper identified principal methods of assets and liability management including liquidity and asset management, forecasting, resource allocation, foreign exchange management and gap management were discussed. The twin concepts of overall bank liquidity and balance sheet interest rate sensitivity management are also highlighted. The paper further observed that that portfolio management in banks being an intricate matter usually requires the setting up of management committees to take charge …

Economic Cost Of Electricity Outages: Evidence From A Sample Study Of Industrial And Commercial Firms In The Lagos Area Of Nigeria., O. A. Uchendu

Economic and Financial Review

The purpose of this study is to estimate some of the measurable costs of electricity outages from a sample of industrial and commercial firms in the Lagos area. To achieve this objective, over 100 firms were surveyed. Analysis of the survey returns showed that firms in the area sustained substantial economic costs, consisting of adaptive costs (investments and operating costs on own generations), operating losses (raw and processed materials), equipment losses and unproduced output. Most of the firms indicated that NEPA's tariff was expensive. They also recommended among other things, private sector participation in the electricity industry and privatization of …

Implementation Of Indirect Monetary Control In Nigeria: Problems And Prospects., F. O. Oresotu

Economic and Financial Review

The paper discusses the advantages and disadvantages, pre-conditions, instruments and issues in indirect approach to monetary and credit control. Among the preconditions stated are the ability of the Central Bank to formulate an appropriate monetary programme to which government must give support and co-operation to the Central Bank in its execution. The importance of competitive money and short-term securities markets to serve as medium for transmitting monetary policy action to the productive sectors of the economy is also stressed. This will facilitate the functioning of an efficient transmission mechanism for the allocation of financial resources among competing needs. The relevance …

The Role Of The Central Bank Of Nigeria In Monetary And Banking Policy Measures., P. A. Ogwuma

Economic and Financial Review

The objective of this paper is to examine the various monetary and banking policy measures which the CBN had applied both in the past and now in carrying out its functions and the role banking legislation plays in this regard. To this end, the paper is organised in four parts. Part I examines the legal and macroeconomic environment in which the Bank discharges its responsibilities. Part II reviews the measures taken by the CBN over the years in performing its functions while Part llI identifies the problems which constrains CBN's performance, the external influences which cause or aggravate these problems …

A Review And Appraisal Of Nigeria's Experience With Financial Sector Reform, M. O. Ojo

CBN Occasional Papers

The primary aim of the paper Is to highlight the policy reforms In Nigeria's financial sector since 1986, assess the results of the reform programme, and Identify the lessons that can be learned from the policy initiatives. The reform package was introduced in 1986 against the background of prolonged macro-economic distortions and economic deterioration, especially during the first half of the 1980s. Financial sector reforms under the aegis of the Structural Adjustment Programme were designed to induce more domestic savings and reduce the distortions in investment decisions. To this end, measures were introduced between 1986 and 1992 (the period covered …

A Comparative Analysis Of The Export Promotion Strategies In Selected Asia- Pacific Countries And Nigeria, Awosseyila A. P, Obitayo K. M

CBN Occasional Papers

This paper reviews the structures of exports and compares the export promotion strategies adopted by some selected countries in Asia-Pacific region and Nigeria. The aim is to find effective solutions to the diversification and expansion of manufactured exports in Nigeria. The five selected countries comprise of three of the four newly industrializing Asian countries (NICs), namely, Taiwan, Singapore, and Hong Kong while the remaining two are members of the six. Associated South East Asian Nations (ASEANS) (Malaysia and Indonesia). Against the background of the world’s average growth rates of 3.2 and 2.0 per cent in 1989 and 1990; the average …

Central Bank Of Nigeria Statistical Bulletin, June 1993, Central Bank Of Nigeria

CBN Statistical Bulletin

This volume/year presents data on the Money and Banking sub-sector, including central banking, financial markets, non-bank financial institutions, clearing house activities, merchant and commercial banking, and public finance statistics. The data includes consolidation of commercial and merchant banks' first and second schedule statistical returns, computation of liquidity ratio, cash reserve ratio, loan/deposit ratio, proportion of loans to rural borrowers and small-scale enterprises, and reconstitution of the Central Bank's balance sheet. The data also indicates the level of banking habit in the industry.

It further explains the classification of insurance companies by their business type, including whole life, non-life, and mixed …

Developments In The Insurance Industry In Nigeria In 1991, Central Bank Of Nigeria Cbn

Economic and Financial Review

Nigeria's insurance Industry expanded marginally In 1991. While some companies In the Industry diversified their activities from wholly life lo joint life and non-life, the number of companies formerly In the life business remained unchanged. Amidst general price increases, the aggregate industry Income rose although expenditures increased foster.

Exchange Rate Action: Channels Of Contribution To Effectiveness Of Growth-Oriented Adjustment Policies In Low Income Primary Producing Countries, F. L. Osundade

Economic and Financial Review

This paper Identifies exchange rate as one of the principal policy tools through which low-Income primary producing countries could properly align their economic and financial activities with those In the rest of the world to achieve satisfactory growth In income and employment. It examines the channels U1rougl1 which devaluation (exchange rate action) can produce significant impacts on major economic aggregates and in the process, correct financial and structural Imbalances.

Japan As A Capital Exporter And The World Economy (Occasional Papers No. 18. Group Of Thirty, New York) By Masaru Yoshitomi, Ademola Bamidele

Economic and Financial Review

Sound financial system is considered central to the development of trade either in an economy or internationally. This fact informed the author of this Occasional paper in examining and bringing into focus how Japan became an international creditor i.e. net capital exporter in the world financial system aside from her leading role in world trade. This position was attained through a combination of many factors, some of which were sectoral savings-investment imbalances and the co-existence of high-employment government deficit and the high-employment current account surplus in the 1970s and 1980s. The author thus, traced the historical evolution of Japan• s …