THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY
ABSTRACT
Through the instrument used in monetary policy help us by the control of inflation in an economy. This to know the control of inflation using central bank of Nigeria monetary policy. Hence, this research work was focused on the investigation of the control of inflation by using central bank of Nigeria monetary policy. In carrying out this study, various research instruments such as questionnaires and oral interviews were used to collect data from respondents.
The research design and methodology secondary data was collected from central bank of Nigeria bullion. Location of data and this was stated in chapter three (3) of the research work from the data collected and stated it was found out that of the control of inflation using CBN monetary policy. The government should establish firms in the economy to reduce the rate of inflation and opening market operation.
Recommendations were made in chapter five shows that in order to prevent through currency devaluation, Nigerians should use in manufacturing capacity labour and skill to take advantage of export opportunity that are created in international market. The introduction of the structural adjustment programme (SAP), in Nigeria had with it seen the need for efficient and effective management of a firm's scarce resource, and for this to be effective.
CHAPTER ONE
1.0 Introduction
1.1 Background of the Study
After an appreciated economic performance in the early 1970s, the Nigerian economy experienced serious economic problems from late 1970s to mid 1980s the country's balance of payment came under severe pressure and was in persistent deficit during the period. The government's current expenditure expanded without an appreciable increase in revenue, leading to widening fiscal deficits, which were largely financial with bank credit with adverse consequences on the general price level. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, (Ahmed, 1992).
In addressing the crisis, a number of policy measures regularly demand government embarked upon management. In April 1982, the federal government enacted the economic stabilization measured, which dealt extensively on import restriction as well as monetary and fiscal policies. The effectiveness of this measures were constrained by the continued decline in foreign exchange earnings, the over valuation of naira and other distortions and liquidities in the economy, (Ahmed, 1992).
As the demand pressure movement at the inter-foreign exchange market (IFEM), the exchange rate of the naira came under renewed pressured in spite of CBN's determination to fund the growing demand for foreign exchange. The naira cost 1% of its face value in February 2002 dropping from N11396 to N114, 75 per dollar at the official market in the parallel market, it cost 2.3% of its value as depreciates from N135.52 to N138.68 per dollar. This was an indication that inflation rat is on the increase (Yansi, 2002).
This study is being carried out to know the different CBN credit instruments and their effectiveness in inflationary control.
1.2 Statement of the Problem
This research project is designed to investigate inflation control through the use of monetary policy. There have been various efforts by the government to combat inflation in the country. But in spite of all these efforts being made, inflation is said to be alarming in the country. Nigerian industries as well as individuals are groaning under the crusting effect of inflation. What the causes of the phenomenon, what measures are taken so far to combat the situation, are credit instrument of CBN effective or ineffective in controlling inflation? (Ozo, et al 1999).
1.3 Objectives of the Study
- To find out whether currency devaluation is a cause of inflation.
- To find out the extent to which inflation has effected the economy.
- To determine the effectiveness of open market operations as a tool for inflation control.
- To identify the adverse effect of inflation on economic growth.
- To recommend measures for effective control of inflation through monetary measures.
1.4 Research Question
- Is currency devaluation a cause of inflation?
- To what extent has inflation affected the economy?
- What is the effectiveness of open market operation as a tool for inflation control?
1.5 Significance of the Study
The study is very timely, today that inflation trends is at an alarming rate in Nigerian economy. This study will be of immense benefit to the government and experts and students to determine the extent of the effect now of CBN monetary policy as a tool of inflation control. In addition, the study will determine the facts or problem limiting the effectiveness of these instruments. It is expected that the findings will help to bridge any gap that may exist and to make this instruments effective in inflation control (Ozo et al 1999).
The government achieved its objectives in economic growth and stability through inflation control we will help the government to know whether to pump money into the economy or not.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
The Control of Inflation Using Central Bank of Nigeria (CBN) Monetary Policy can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
Disclaimer for Complete Material Utilization
The displayed research work titled "The Control of Inflation Using Central Bank of Nigeria (CBN) Monetary Policy" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can this topic “Effectiveness of Antiseptics Against Pathogens” be used for Science Laboratory Technology (SLT) Project?
Yes it can be utilized for research — Antiseptic is a chemical agent that slows or stops the growth of micro-organisms on external surfaces of the body and helps to prevent infections. The study was carried out to examine the antiseptics relevance in pathogen elimination. In achieving this aim, the following specific objectives were set out as follows to; analyze the efficacy of several antiseptics against some pathogens, examine the growth inhibition zones of pathogens for analyzed antiseptics Pathogen, and examine the antiseptics usage in eliminating pathogen in human skins. Antiseptics are chemicals that people apply to the skin. They can reduce the number of microorganisms living on the skin, in wounds, and in mucous membranes. Investigation reveals the problems of the antiseptics research work; a lot of …
Can the material for “Computerized Guest Information Tracking System” be used as a guide for Information System Project?
Yes it can be used — Guest Information comprises an individual’s data records and activities that process data and information in an organization and it includes the organization's manual and automated processes. The aim of this study is to design software that will serve as an electronic register to keep record of daily guest to the Hotel. The software will maintain a centralized database system for the purpose of information sharing. In achieving this aim, the following objectives were laid out to develop an application software that will provide an electronic register to keep record of guest visit to the Hotel and provide password to prevent unauthorized users from accessing and manipulating information. The motivation that led to the implementation of the proposed system is that …
Can the material for “An Appraisal of Infrastructural Facilities for Teaching Economics in Nigerian Public Senior Secondary Schools” be used as a guide for Education Project?
Yes it can be used — This research is on an appraisal of infrastructural facilities for teaching Economics in Public senior Secondary Schools and being a case study of some selected schools in Mushin local government Area. The main objective of the study is to examine if there is adequate infrastructural facilities for teaching Economics in public senior secondary schools in Nigeria. Specific objectives are: To examine the adequacy of infrastructural facilities for teaching Economicsin Nigerian public senior secondary schools, to identify the relationship between infrastructure and performance in Economics in public senior secondary schools in Nigeria. In the methodology, data used for the study was gotten from the primary data which is the questionnaire. The population of the study consists of 89 respondents. In analyzing the …
Can the material for “The Impact of Tax as a Source of Revenue” be used as a guide for Accountancy / Accounting Project?
Yes it can be used — It is widely known that taxation is a source of revenue to the government and it is also a coercive exploration to the payers. It is also an instrument for the fiscal policy either for expectionary or contractionary. When it is expectionary the government expenditure increases, the income increases, the consumption increases, thus resulting to investment multiplier and employment increase. In other way, increase in government expenditure lead to increase in taxation which can lead to reduction in investment and consumption reduce and employment reduces. In every society, there exists a direct relationship between the levels of needs and the amount of resources of its socio-economic development. For this reason taxation, has become what might be called a necessary evil”, this is …
Is the topic “An Appraisal of Advertisement Strategies of GSM Company MTN” recommended for Mass Communication (MC) Project?
Yes it is highly recommended — The study was carried out to appraise the Advertisement Strategies of GSM Company MTN. In achieving this aim, the following specific objectives were laid out to find out the advertising strategies used by the MTN Nigeria to sell their products and services and find out the challenges MTN face in adopting the various advertising. The strategies implemented by the MTN that is telecommunication market with the consequent grant of licenses to many GSM companies, competition to gain more of the market share has become a norm. Each of the GSM companies strives to promote its services and product through advertising. Most of the promotional strategies revolved around capturing the business class and the younger generation who formed a major part …
Can the material for “The Potentials of the Mini-grid as a Driver of the Nigerian Economy” be used as a guide for Electrical / Electronics Engineering (EE) Project?
Yes it can be used — The study examines the Potentials of the Mini-grid as a Driver of the Nigerian Economy. In achieving this aim, the following specific objectives were laid out to examine the impact of mini-grid in Nigerian economy, presents the opportunities that have been used in mini-grid in Nigeria, determine the challenges of implementing mini-grids in Nigerian economy systems, and find out how government financing mini-grids Nigeria. Nigeria is a country with a population of over 170 million; it is rightly the most populous country in Africa and the eighth most populous country in the world. According to the United Nations, one in six Africans is Nigerian. It is a regional power, listed among the “Next Eleven” economies, and a member of the …
Can this topic “Methanol Extract of Creteva Adansonii Stem Bark: Phytochemical and Anti-Inflammatory Properties” be used for Linguistics and Communication Project?
Yes it can be utilized for research — This research investigated the phytochemical and anti-inflammatory properties of methanol extract of Crateva adansonii stem bark. Although several edible and non-edible plants parts are used in inflammatory treatment, many record has been found of the use of Crateva adansonii stem bark. For this research, fresh stem bark of Crateva adansonii were collected from Asata village in Enugu State. The cuttings were authenticated at the Bioresource development centre. They were then dried at room temperature for one month in an open lab space, grounded into powder and weighed on a beam balance as 460.6g. The powder was soaked for twenty-four to fourty-eight hours in methanol to get a methanol extract and then concentrated into paste at a set temperature range of 30-550C …
Can the material for “Assessment of the Role of the Teacher in Classroom Management in Nigeria” be used as a guide for Education Project?
Yes it can be used — The study examines the role of the teacher in classroom management. The population of the study consist of the entire teachers of Rimi College Kaduna. Out of 52 staff, 27 were selected as the sample size. Questionnaire constituted the instrument of data collection. The mean (x) was used to analyze the five liker questionnaires based on the research questions. The analysis indicated that the function of the teacher in classroom management if basically planning of lesson, inculcating discipline, delegating responsibility and ensuring decorum that will make such class conducive for teaching and learning. Classroom management is effective on students achievement because help to create a conducive environment that is conducive for learning and also facilitate lesson planning and class administration enhances teaching …
Can the material for “The Impact of Globalization of Financial Service on the Development of Nigerian Insurance Industry” be used as a guide for Insurance Project?
Yes it can be used — The study sought to investigate the impact if globalization of financial services on the development of Nigerian Insurance industry (A study of IGI). Globalization refers to the process of the intensification of economic, political, social and cultural relations across boundaries, and it is principally aimed at the homogenization of political and socioeconomic across boundaries. Industrial general insurance company Enugu was used as a case study. The objective of the research were to ascertain why Nigeria insurance industry has not been participating in the international insurance market, and to identify the needs facilities to be used to enhances globalization in Nigeria. The methodology used in obtaining data was a structural questionnaire and its validity of hypothesis was tested using the chi-square statistical …
Is the topic “Psycho-social Variables and Students’ Career Choice in Public Secondary Schools” recommended for Education Project?
Yes it is highly recommended — This research study was carried out to investigate “Psychosocial Variables and Students’ Career Choice in Public Secondary Schools in Ikono Local Government Area of Akwa Ibom State. The study adopted a survey design method in carrying out the study. Random sampling technique was used in selecting two hundred and fifty (250) respondents for the study. A structured twenty item questionnaire called psychological variables and student career choice questionnaire (PVSCCQ) was developed and used in collecting data for the study. The collected for the study was analyzed using Pearson’s Moment Correlation relationship. The findings of the revealed that student’s self-concept to a varying degree relates with student’s career choice. Based on the findings of the study, it recommended among others that …