Sunday, 6 May 2018

Monetary Policy In Nigeria: Objectives & Quick Facts


Monetary policy is basically the process by which the monetary
authority of a country,in this case the Central Bank Of Nigeria controls the monetary base while targeting an inflation or interest 
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rate to ensure price stability and general trust in the Naira.

Monetary Policy In Nigeria: Objectives & Quick Facts

The major objectives of the monetary policy in Nigeria is basically to maintain low unemployment rate,contribute to the stability of gross domestic product and stabilize,maintain exchange rates with other currencies of the world.


Judging from the current state of the Nigerian economy and high 
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rate of unemployment, anyone can clearly see that Nigeria's Monetary Policy is not efficient. 

Let's quickly take a look at some of the quick fact about monetary policy in Nigeria.

Nigerian Monetary Policy Quick Facts

1. The 2014 Nigerian monetary policy was focused on achieving the objective of price and exchange rate stability which clearly hasn't been efficient as it hasn't been able prevent high money inflation. 

2. The exchange rate policy hasn't been consistent and stable,this is another major problem for monetary policy and the Nigerian economy as dollars is exchanged for the Naira at different rates.
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3. As stated earlier price stability is one of the major aim of monetary policy,however due to high inflation rate and different exchange rates it's nearly impossible to regulate the prices.

4. Unemployment is at an all time high,which is an indication of an ineffective monetary policy,Nigeria's unemployment rate is currently above 12%.

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5. The Nigerian economy slipped out of recession some months back,mainly because of some strict government policies and an ineffective monetary policy.


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