THE REVIEW OF APPLICATION OF GASES IN BIOMASS

1.0 Introduction

The central bank is the only financial institution established and charged with the day to day management and control of the nation's monetary affairs, the supervisor and co-ordination of banking and financial activities of the country. Ever country has only one central bank whose motive is not to make profitable but to carry out the major financial operations of the central government of a country.

In the world, the central bank stands at the apex of every country's financial system, acts as the only issuer of the country's legal currency, and acts as the government representative in the banking industry. However, in West Africa before independent, the West African Currency Board was the highest financial institution established by the Colonial masters in various parts of the British Colonial empire to act as a quasi-central bank.

This board was meant to control the issue of currency in the member countries and to keep currencies of West African Nations at per (Standard) with the pound sterling. But the operation of this board especially the money supply function was too rigid and inelastic to allow for fast economic development of the countries concerned.

Also, it made the provision additional currency unreasonable burden some for the colonial territory and this situations clearly called for the establishment of the central bank to hasten economic growth and to play the role of promoting economic development and capital formation, and ensure the ger mination of growth of the vital institutions and practice that encourage savings mobilization.

With the dissolution of the West African Currency Board (WACB) and the submission of report by Mr. T.B Loynis in August 1957, the central bank of Nigeria (CBN) was established in 1958 as a state bank that undertakes the major financial operation of the government.

The (CBN) promotes the development of the monetary and financial mechanism appropriate to Nigeria's need, issues and centrals the Nigerian currency, acts as the Federal Government Agent by Managing the public dept and floating short and long term credits, and opening a local channel of investment for the commercial banks. Also, it plays the role of controlling banks by directing their credit facilities to suit the economy. This role is achieved throught the credit guideline of the central bank.

1.1 Background of the Study

The background of the study is concerned on the operations of the central bank and its impact in the economic development of Nigeria. The central bank is considered as the apex bank and head of the country's banking system.

It is owned by the government which appoints its board of directors and its governor. In comparison, the central bank of Nigeria can be compared with the bank of England which is the apex bank or the Federal Reserve System that undertakes central banking in the United States.

The central bank of Nigeria performs the function of carrying out the country's monetary policy. In order to perform this function, the (CBN) must work closely with the state and have some means of influencing the credit policy of the commercial banks.

Moreover, the (CBN) does not aim at making profit for itself nor to compete against the commercial banks in the state for ordinary banking business, but to supply cash required by commercial banks and to assist in the clearing of cheques.

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1.2 The Statement of the Study

The issue of the role of the (CBN) in influencing the economic development of Nigeria is an important issue which has become a problem to the entire nation.

Despite the fundamental and principle role of the central bank as the controller of the monetary policies of the country, yet a lot of interviewing variables have stopped in making it difficult for economic principles to operate in the Nigerian financial system. The central bank of Nigeria has a distinct role to play in directing the nations economic development, but unfortunately this can not be achieved because of the human factors as well as the un-conductive environmental factors.

The density of bribery and corruption as well as the galloping and spiral inflationary situation more or less neutralize the influence that the central banks exercise in the economic development of Nigeria. This project work will go in depth to identify the problems encountered by the central bank of Nigeria in the economic development of the country with a view to find;

1. The role of the (CBN) to the entire economy particularly to financial sector.
2. The extent that the central bank has helped in the development of the Nigeria financial sector.
3. Whether the development of the Nigeria financial sector has contributed immensely to the development of other sectors of the economy.

It is on this note that this project is set to look into the role of CBN in the development of the financial subsector.

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1.3 Purpose of the Study

The purposes of this study are to;

1. Find out the role of the Central Bank of Nigerian in the development of the Nigerian economy.
2. Find out how the money deposit banks comply with the Central Bank of Nigeria's rules in the controlling the money supply and credit creation.

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1.4 Research Questions

• What are the roles of CBN in the development of financial sector?
• Are the money deposit banks complied to the central bank's rules in controlling the money supply and credit creation?

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1.5 Hypothesis

• HO: The CBN plays no role in development of Nigeria financial subsector.
• Hi: The CBN plays Significant roles in developments of financial subsector. In Nigeria economy, (CBN) has provided enough currencies, price stabilized and inflation controlled.
• Ho: Money and Deposit Banks do not comply with CBN rules in controlling money supply.
• Hi: The money deposit banks comply with the (CBN) rules for the controlling money supply.

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1.6 The Delimitation of the Study

The delimitation of the study will take into account of extent the central bank of Nigeria can spared its tentacles in solving the economic problems of the country.

The delimitation of this study will also deal with the extent the researcher can read. In some circumstances, the researcher will make effort through appropriate questionnaires to get technical and administrative staff as well as other categories of staff particularly, the senior and junior staff who have direct access to the central bank operational machinery.

Finally, the researcher who is a worker in the (CBN) will volunteer answers to some of the questions that might be thrown on them.

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1.7 Significance of the Study

Like we said earlier the aim of this study is to find the role which the central bank of Nigeria plays in the development of the Nigeria financial sector, and the importance of the financial sector in Nigeria.

The purpose of having the central bank in Nigeria is to influence and control the conducted of commercial banks and other closely related institutions in the country. This study presents an overview of the Nigerian financial sector, its importance as an engine and growth. However, without the financial sector in Nigeria and any other country of the world, there will be no growth in other sectors of that country since no nation, business firm or individual can live without funds.

If Nigeria should live without the financial sector, it means that all revenue collected and fund generated within it will be scattered and fund will not be accounted for since there is no sector managing it. On the other hand, if Nigeria has a financial sector without having an institution at the apex to control it, there will also be a problem.

Therefore, the financial sector should not be overlooked in any nation as well as the central bank of that nation. Notwithstanding, it should be noted that the central bank of Nigeria has made great achievement in the development of the Nigeria economy.

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1.8 Operational Definition of Terms

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1. Bank Advance:

This item in the balance sheet of the been accumulated up to a certain period.

2. Accrued Interest:

this represents interest on a security which has been accumulated up to a certain period.

3. Bank Acceptance:

This is a bill of exchange that has been accepted by a bank.

4. Bank Charges:

These are charges made by the bank to a customer for the management of his or her account. They are also known as bank commission.

5. Collateral Security:

This is a kind of asset required by the bank from the people to whom they lend the money to.

6. Financial Intermediaries:

These are all financial instructions that engage in some form of borrowing and lending.

7. Profitability:

This refers to the relationship between profit and the resources employed in earning it (profit). The resultant figure is usually express as a percentage.

8. Specialized Banks:

These include commercial, merchant, mortgage and other financial institution except (CBN).

9. Divided:

This is the part of a company's earnings that is actually paid out to equity share holders as a return on their investment.

10. Efficiency:

This is the effective use of raw materials and other materials by the banks.