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Bullion

Keywords

Nigerian economy, Central Banking, Nigeria Economic growth, Economic development

Abstract

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 deficit resulting in excessive growth in monetary aggregates. The negative effects of this development include intensified pressures on domestic prices, the Naira exchange rate, and the balance of payments. Other major problems include large external payments, low output growth and unstable socio-political environment.

Author Bio

The author is the Governor of the Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

4

Volume

17

COinS
 
 

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