Introduction
The need for monetary policies in a developing economy like Nigeria cannot be over-emphasized for monetary management and for the regulation and development of the financial system of an economy.
Monetary policies are implemented through the banking sector to which the guidelines are directed. The essence of having monetary policies put in place is hardly appreciated by all stack holders (government, banks, other financial institution business enterprises and individuals) given the degree of non-compliance to the stipulated measure which has caused much economic set-back in the past.
The Nigeria economy has experienced periods of economic “boom or depression” at various stages of its developments prior to the establishment of the Central Bank of Nigeria (C.B.N) in 1959 and up to 1962 there was no specific monetary management policy in place. The Nigeria economy did not achieve a significant increase in economic growth because the Colonial British system being operated by the West African Currency Board (WACB) had no room for the development of the local economy. In 1962, the Central Bank of Nigeria (CBN) tools a decisive step to adopt the monetary policy objectives as contained in the first national development plan in order to re-direct the focus of the Nigeria government to suit the need of the local economy.
By using monetary policies to initiate development programme for the economy, the C.N. al intended to involve all sectors of the economy in participating in economic activities that will lead the country to a substable economic development. The policy measures taken by the C.B.N to open up the Nigeria economy involved among other thing, the control of money supply and credit conditions. The implementation of the country’s monetary policies over the year had led to a remarkable increase in economic activities as observed in the appreciable increase in the growth of the productive seasons of the economy. The overall effect is that there is a positive change in the country’s economic growth informs of Nigeria and (C.B.N) is still among accounts in making Nigeria move stable so as to achieved relative economic growth and development.
Although monetary policies are the cone tools for addressing the economic problems of a nation, using monetary policies in isolation could be couner productive monetary policies are used along with other measures and fiscal policies to ensure that the set-objectives are achieved for the attainment of sustainable economic growth and economic stability.
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