THE CENTRAL BANKING AND MONETARY REGULATION IN NIGERIA
The question of money is a very important question today. This is because of the role of money in social and economics development. Money plays a key role in this sectors and requires that its position is always under focus. The government of any country keeps it’s eye on this sectors by using monetary policies are a weapon of control. Monetary policies are directives, guidelines, or order issued to the player in the money markets by the government.
In Nigeria, the Central bank of Nigeria (CBN) is the highest organ used by the Federal Government to control the economy. The CBN was established to perform this duty and to creates money to influences economics activities and achieve economics objectives of the government. The pursuance of this objectives gives to Central Banking and Monetary regulation in Nigeria. The CBN is the highest bank or known as the apex bank.
This position it is occupying make it possible to regulates direct and control economics activities fro both the government and private sector. Much of government activities may lead to high spending of money which may also lead to inflation. Inflation does a lot of damage to the economy. It weaken the economy because it reduces the values of the currency. It makes the cost of goods and services very high. It affects planning and dis-encourage investment etc.
The Central bank start it function on the economy by first of all licensing the commercial bank and playing supervisory role for all other player in the money market. This is to makes sure that he aims monetary regulation in Nigeria is ascertained.
1.1 BACKGROUND OF THE STUDY
The Central Bank of Nigeria (CBN). The Institution that perform the Central Banking function for Nigeria is called Central Banking of Nigeria. In this section, I shall briefly discuss the background to it’s establishment, it’s organizational structure, it’s operational modalities, and financial statement.