Monetary policy, Policy development, Nigerian economy


The paper examined the activities of the Bank into perspectives, particularly with the often-mis-construed belief the CBN should be held accountable for all the woes of the Nigerian economy. It also reviewed and appraised the performance of the CBN in the effort to meet its statutory mandate and adapt to the circumstances of the new global trend in Central Banking in which the maintenance of price stability supercedes all other objectives of monetary policy. The challenges facing the Bank are enormous, but not insurmountable. Efforts are already being made to confront these challenges. The instrument autonomy recently granted to the Bank has enhanced its ability to conduct monetary policy, although there is still room for improvement. For example, the perennial problem of managing excess liquidity largely induced by the government spending will require a more innovative approach on the part of the CBN to deal with it. This is already receiving the attention of the Management of the Bank. A further challenge that the Bank is presently exploring is the shift from monetary targeting to inflation targeting, which is becoming popular among central banks because of its simplicity and the fact that it enhances central banks credibility.

Author Bio

The author is the Governor of Central Bank of Nigeria.

Publication Title

CBN Bullion







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