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Economic and Financial Review

Publisher

Central Bank of Nigeria

Keywords

Intersectoral Financing, Nigeria

Abstract

Policy changes following the Structural Adjustment Programme (SAP) have had remarkable effects on the movement of funds between major sectors of the economy. The behaviour of economic aggregates over the period 1989 - 1992 showed that large transactions occurred in government debt instruments, the domestic loans and advances market and currency and deposits of financial system. Fund flowed from the households sector to the Federal Government and business sectors. The financial sector re/arms, including the interest rates deregulation, resulted in domestic savings exceeding capital formation, and contributed to the expansion in money supply. Lending activity of the banking system showed a fluctuating cycle, but with the business sector receiving the major ~hare, and on its heels, the financial institution and the government sectors. Movements in foreign exchange were directly related to events in the international oil market.

Author Bio

The authors are staff of the Flow of Funds Office, Financial Analysis Division, Research Department, Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review

Issue

2

Volume

33

Recommended Citation

Central Bank of Nigeria (1995). Intersectoral Financing in Nigeria, 1989 - 1992. CBN Economic and Financial Review. 33(2), 171-200.

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