Articles

Nigeria has long been trying to learn how best to manage boom-bust cycles in global commodity prices, adopting an oil-price benchmark for annual budgets while saving revenues above the benchmark in an excess crude account in the half decade before the 2008/2009 global crisis. The crisis and its afte [Read more]

Disparities in endowments of agricultural, mineral and commercial wealth across Nigeria’s six geopolitical zones determine the rates at which the different regions can grow. Economic activities and growth are concentrated in four regions, while the remaining two regions are largely excluded fr [Read more]

Having a clear structure to navigate the complexities of life and career is more than a luxury—it’s a necessity. Structured planning empowers individuals to make sense of their world, achieve meaningful progress, and unlock personal fulfillment. However, for many, setting and sustaining [Read more]

The current monetary policy framework is based on the targeting of bank reserves as operating target with monetary aggregates as intermediate target. The ultimate objective is to influence the general level of prices - inflation. Monetary targeting implied by the current practice was considered a [Read more]

In Nigeria, the major objectives of policy are the attainment of price stability and sustainable economic growth. Associated objectives are those full employment and stable long-term interest rates and real exchange rates. In pursuing these objectives, the CBN recognises the existence of conflict [Read more]

A nominal anchor for monetary policy is a single variable or device which the central bank uses to pin down expectations of private agents about the nominal price level or its path or about what the Bank might do with respect to achieving that path (Krugman, 2003). Generally, the two kinds of nomina [Read more]

Following Nigeria’s exit from the Paris Club, attention was focused on Nigeria’s London Club Debts. Consequently, about US$1.406 billion (N182.78 billion) was paid to exit the London Club debts, while a further US$1.487 billion, to redeem the par bonds between November and December 2006. [Read more]

Until about 1993 when OMO was introduced, the CBN relied almost exclusively on varying combinations of direct instruments of monetary control from time to time. These instruments included: credit ceilings, secretarial credit allocation, interest rate controls, imposition of special deposits, moral s [Read more]

Prior to the banking sector consolidation exercise that was concluded in December 2005, the framework for monetary policy in Nigeria had witnessed some transformation. This included the shift from the use of direct monetary policy control to indirect (market-based) monetary management, and the switc [Read more]

Liquidity management involves the supply/ withdrawal from the market the amount of liquidity consistent with a desired level of short-term interest rates or reserve money. It relies on the daily assessment of the liquidity conditions in the banking system, to determine its liquidity needs and thus t [Read more]