Money Market's Contribution to National Development in Nigeria

1.0 Introduction
The money market in our economy in a very vital sector and its position in the economy cannot be over emphasized. The money market in Nigeria was fashioned along with that of Britain, established and nurtured by the CBN primarily for mobilizing domestic savings for productive investment as well as providing the government with funds to enable it implement its economic programme.
Money market as an intermediary for short term financial assets that are close substitute for money consists of the CBN, Deposit money bank, Discount house, corporate bodies, individuals, finance companies Bureau de change as its major operators and deals on various financial instrument such as bills, certificates, commercial papers, certificate of deposit etc which one transferable and desirable in nature.
Notwithstanding, the recent global economic meltdown which tends to set a disjunction between the surplus and the deficit sectors, the surplus sector appears not to be interested in lending to the deficit sector, this pose a serious bottleneck to the proper functioning of the money market, thereby reducing the level of investment in the economy. The logic question now is what would be the lot of Nigerian economic and its inhabitants in general.

1.1 Background Of The Study
These are various financial markets which are institutional arrangements that facilitates the intermediation of funds in an economy. They financial market is segmented into two- of is money market, which deals in short term funds and the other capital market that is for long term dealing in funds ( Anyanwu 1996). The basis of distinction between the money markets and the capital market lies in the degree of liquidity of instruments bought and sold in each of the market which can be further sub —divided into primary and secondary markets, while primary market is concerned with the raising of new funds, the secondary market exist for the sale and purchasing of existing centuries that are already in people's hands thus, enabling savers who purchase securities when they have surplus funds to recover their money when they are in need of cash to (Afolaki 1991).while money market is c concerned with the raising of new funds
Money market play a key role in banks liquidity management and transmission of monetary policy. In normal times, money markets are among the most liquid in the financial sector. By providing the appropriate instruments and partners for liquidity trading the money market allows the refinancing of short-term and medium term positions and facilitates the mitigations of your business liquidity risk. The banking system and the money market represent the exclusive setting monetary policy operates in a developed active an efficient into banks market enhances the efficient of central banks monetary policy, transmitting its impulses into the economy best thus the development of the money market smoothes the progress of financial intermediation and boosts lending to the economy , hence improving the country's economic and social welfare.
Therefore, the development of the money market is in all stakeholders interest the banking system itself the central banks and the economy on the whole.

1.2 Statement Of The Problem
The role of the financial market in the development of the real sector and the economy at already cannot be overemphasized.
A critical characteristics of the money market is that it should deep and broad so as to absorb large volume of transactions without significant effect on security prices and interest this characteristics requires that these exist many active market participatant such that the transaction of an individual investors will have just infinitesimal effect on security prices are interest rates the characteristics also requires that there are always alternative investment instrument available to satisfy the respective return risk desires of investors in markets.
A money market that has depth and breath will be informationally as well as operationally efficient and will contribute significantly to the growth of the economy therefore these is need to examine this crucial market and evaluate. Its performance in terms of its contribution to economic development.

1.3 Objective Of The Study
The main objective of this study is to ascertain the role of Nigerian money market in the national development of the country. Specifically, the study aims at

1. Ascertaining whether the supervisory role of the regulations has any impact on the money market operations
2. Whether the operators operation affect the money market operation
3. To operate the contribution of the Nigerian money market to the economic growth of the country.
4. Whether there is hindrance in money market operation.
5. To investigate the role of money market in financial development in Nigeria.
6. Offer suggestion on how to improve the money market operation

1.4 Research Questions
The study is intended to provide answers to the following questions.

• Has the use of money market relay contributed to the economic development of the country.
• Has the use of money market by the government really stabilize the country's road to industrialization and economic development.
• is there any significant relationship between money market and economic growth in Nigeria.
• Is there any significant relationship between money market instruments and the development of Nigerian financial system.
• Does the operation of the operators affects the money market operations.
• Is there any hindrance in money market operation.

1.5 Significance Of The Study
The research work is carried out for reveal the ital role of a sound money market system in relation to maintaining efficient and dynamic financial sectors.
These works will also be of great help and benefit to other sectors, both public and private sector.
I strongly believes that the management of Nigerian money market null use the findings of the research work to equip themselves with appropriate checks and control that are necessary for the development of an enviable financial system.
Prospective investors, promoters and shareholders would as well find thus study very useful it will serve as an aye opener o what it takes to invest in the money market government agencies and parastals are not left out in the away of the people that will find this study beneficial. This is with belief that that the findings will help them adverts improperties that characterized the system.

1.6 Scope Of The Study
This is the study is delineated to identify the role of Nigerian money market in the rational development, the risk associated with money market operation and strategies that could be adopted to manage the risk identified.
The research work will only look at a particular past of the economy ( the financial system) this work cannot cover all the facts that make up the financial sector,, but will look at the money market and its stabilization of the economy as its road to industrialization and economic development.

1.7 Limitation Of The Study
Due to financial and time constraints usually associated with studies of this nature, this study is restricted to only Nigerian money market.

1.8 Definition Of Terms
Bills
Is a form of IOU ( I owe you) promising to pay whosoever hold it a certain sum of money on a specified future date.
CBN
This central bank of Nigeria is the issuer of the domestic currency, it participates actively in the money market in the process of implementing its monetary policy and by virtue of its role as the bankers bank.
Certificate Of Deposit:
is an inter- bank dept instrument designed to channel surplus funds from one institution to another.
Commercial Paper:
Are promissory note with maturing period range from few days to 270days (9 months). They are issued by corporate entities evidencing indebtedness.
Financial Companies:
These are institution that specialized in short term non-bank financial intermediation.
Individuals:
This constitutes the basic economic units in any society.
Investment:
are assets acquired by an enterprise for purpose of capital appreciation or income generation with out any activities in the form of production, trade or provision of services.
Operators:
These are financial institution operating in the country. They are actively engaged in the financial intermediation process.