THE ROLES OF THE CENTRAL BANK IN STABILIZING A DEPRESSED ECONOMY. (THE NIGERIA EXPERIENCE)

CHAPTER

ONE

mso-bidi-font-family:"Bookman Old Style"" lang="EN-GB">1.1       INTRODUCTION

The objectives

of establishing Central Bank of Nigeria were to serve as banker to the banking

systems, to perform supervisory role over the commercial banks and issue

currency thus requiting the supply of money in the country. It also acts as

financial adviser to the government on monetary policies and implements the

policy on behalf of the government; it involves issuing legal tender currency,

maintaining the value of domestic currency enhancing mobilization of fund.

The Central Bank

of Nigeria is government bank, established to keep a country’s financial system

under control and this supervision.

The Central

Bank of Nigeria is expected particularly in promoting economic growth by

fostering the development of money market and capital market, develop banking

habits and sound financial system. In order to facilitate economic development,

CBN tends to engage in activities, which extend beyond its traditional

functions. In this regard, it played a unique role in the development of Nigeria

economy. Particularly in promoting agricultural and industrial development in

Nigeria.

The Central Bank

of Nigeria was established to act as the organ of government that should

undertake the major financial operation of the government and by its conduct

influence the behaviour of financial institutions so as to support the economic

policy of the government. The CBN carries out this responsibility on behalf of

the federal government through a process outlined in the Central bank of

Nigeria decree 24, 1991 and the banks and other financial institution in

formulating monetary policy.

In fact, the

roles played by CBN in stabilizing Nigeria economy is enormous one. Since its

inception in 1958, it had engaged in one stabilizing one role or the other.

TABLE

OF CONTENT

                                                                                        PAGE

Title page                                                                                          i

Certification                                                                                     ii

Dedication                                                                                       iii

Acknowledgement                                                                           iv-v

Table of content                                                                               vi-vii

CHAPTER

ONE

1.1    Introduction                                                                           1-2

1.2    Statement of the problem                                                      2

1.3    Purpose of the study                                                             2-3

1.4    Research hypothesis                                                              3-4

1.5    significance of the study                                                        4

1.6    Scope and limitation of the study                                         5

1.7    Definition of terms                                                                 5-8

CHAPTER

TWO

2.1    Review of related literature                                                   9

2.2    Introduction                                                                           9-10

2.3    Definition                                                                                10-14

2.4    Central Bank of Nigeria and its objectives                           14-17

2.5    Functions  of central Bank

of Nigeria                                   17-25