Central Bank of Nigeria
Monetary Policy, Nigeria
The main aim of the paper is to review the evolution and performance of monetary policy in Nigeria in the 1980s. Monetary policy objectives remained broadly the same throughout the review period· simulation of output and employment, promotion of stable prices and support of external equilibrium The direct monetary controlframeworkentailingtheprescripttonqfaggregatecreditceilings,selectivecreditcontrolsandregulatton of interest rates, was prominently used between 1980 and 1985, and although was generally retained from 1986, there was some degree of liberalizatton in line with the general philosophy of the Structural Adjustment Programme. Monetary policy faced increasing difficulties due in large part to the Inadequacy of the control framework and absence of harmonisation between monetary and fiscal policies. Under these circumstances, macroeconomic variables moved to undesirable directions for most qf the decade. The announced movement to market-based Instruments of monetary control is a logical follow-up to the .financial deregulation already embarked upon under SAP and the poor performance of direct monetary control. For effective use of such Instruments. however, some constraints must be eliminated or reduced substantially. These Include the areas liquidity in the economy, conflict between monetary and fiscal policies, Inadequate competition in the banking system. large leakages in the monetary control system and Inadequate data base.
CBN Economic and Financial Review
Ojo, M.O. (1992). Monetary Policy in Nigeria in the 1980s and Prospects in the 1990s. CBN Economic and Financial Review. 30(1), 1-31.