Key Features:

- No of Pages: 81

- No of Chapters:5

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Introduction:

Abstract

Through the instrument used in monetary policy help us by the control of inflation in an economy. This to know the control of inflation using central bank of Nigeria monetary policy.



Hence, this research work was focused on the investigation of the control of inflation by using central bank of Nigeria monetary policy. In carrying out this study, various research instruments such as questionnaires and oral interviews were used to collect data from respondents.



The research design and methodology secondary data was collected from central bank of Nigeria bullion. Location of data and this was stated in chapter three (3) of the research work from the data collected and stated it was found out that of the control of inflation using CBN monetary policy.



The government should establish firms in the economy to reduce the rate of inflation and opening market operation. Recommendations were made in chapter five shows that in order to prevent through currency devaluation, Nigerians should use in manufacturing capacity labour and skill to take advantage of export opportunity that are created in international market.



The introduction of the structural adjustment programme (SAP), in Nigeria had with it seen the need for efficient and effective management of a firm’s scarce resource, and for this to be effective.

Table of Content

CHAPTER ONE



1.0 Introduction



1.1 Background of the study



1.2 Statement of problem



1.3 Objective of the study



1.4 Research question



1.5 Significance of the study



1.6 Scope and limitation of the study



1.7 Definition of terms



REFERENCE



CHAPTER TWO



LITERATURE REVIEW



2.0 Meaning of inflation



2.1 Various rate of inflation



2.2 Types and causes of inflation



2.3 Effects of inflation in the economy



2.4 Meaning of monetary policy



2.5 Objectives of monetary policy



2.6 Instrument of monetary policy



2.7 Limitations of monetary policy



2.8 Inflation control through use of monetary policy



REFERENCE



CHAPTER THREE



3.0 Research design and methodology



3.1 Sources of data



3.2 Secondary data



3.3 Location of data



3.4 Method of data collection



CHAPTER FOUR



4.0 Findings and summary



CHAPTER FIVE



5.0 Conclusion and recommendation



REFERENCE



BIBLIOGRAPHY

Introduction

INTRODUCTION



BACKGROUND OF THE STUDY



After an appreciated economic performance in the early 1970s, the Nigerian economy experienced serious economic problems from late 1970s to mid 1980s the country’s balance of payment came under severe pressure and was in persistent deficit during the period. the government’s current expenditure expanded without an appreciable increase in revenue, leading to widening fiscal deficits, which were largely financial with bank credit with adverse consequences on the general price level. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, (Ahmed, 1992).



In addressing the crisis, a number of policy measures regularly demand government embarked upon management. In April 1982, the federal government enacted the economic stabilization measured, which dealt extensively on import restriction as well as monetary and fiscal policies. The effectiveness of this measures were constrained by the continued decline in foreign exchange earnings, the over valuation of naira and other distortions and liquidities in the economy, (Ahmed, 1992).



As the demand pressure movement at the inter-foreign exchange market (IFEM), the exchange rate of the naira came under renewed pressured in spite of CBN’s determination to fund the growing demand for foreign exchange. The naira cost 1% of its face value in February 2002 dropping from N11396 to N114, 75 per dollar at the official market in the parallel market, it cost 2.3% of its value as depreciates from N135.52 to N138.68 per dollar. This was an indication that inflation rat is on the increase (Yansi, 2002).



This study is being carried out to know the different CBN credit instruments and their effectiveness in inflationary control.