Thesis Abstract

Abstract
Monetary policy plays a crucial role in shaping the economic landscape of any country, including Nigeria. This study aims to evaluate the effectiveness of monetary policies in the Nigerian economy by analyzing the impact of key monetary policy tools such as interest rates, reserve requirements, and open market operations on various economic indicators. The research employs a combination of quantitative analysis and econometric modeling to assess the relationship between monetary policy measures and key macroeconomic variables like inflation, GDP growth, exchange rates, and unemployment. By examining historical data and conducting regression analysis, the study seeks to provide insights into how monetary policies have influenced the Nigerian economy over time. Furthermore, the research delves into the challenges and limitations faced by monetary authorities in implementing effective policies in Nigeria. Factors such as structural rigidities, external shocks, and fiscal policy coordination are considered in evaluating the overall effectiveness of monetary measures. The findings of this study are expected to contribute to the existing body of knowledge on monetary policy effectiveness in developing economies, particularly in the context of Nigeria. The research aims to provide valuable insights for policymakers, economists, and other stakeholders to enhance the design and implementation of monetary policies that can foster sustainable economic growth, price stability, and exchange rate stability in Nigeria. Overall, this research seeks to shed light on the effectiveness of monetary policies in the Nigerian economy and offer recommendations for improving the policy framework to better address the challenges and opportunities facing the country. By understanding the impact of monetary measures on key economic indicators, policymakers can make informed decisions to promote economic stability and sustainable development in Nigeria.

Thesis Overview

1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

Some years ago, Nigerian economy was faced with the problems of circulation of money. He major problems that affected the economy were price instability unemployment balance of payment which hindered the economic growth.

As time went on, he government decided to establish a policy which was know as “monetary policy” which will be used to control the economy by monetary authorities to check the volume of money quantity availability cost and direction money and credit in the economy as a hole.

The purpose of the study is listed beneath:

– To find the effect of monetary policy on employment in the Nigerian economy

REASONS FOR THE STUDY

The reasons for the study is to know the effectiveness of monetary policy banking sector of Nigeria and some of the reasons are listed beneath-

1. To know the reason why monetary policy is vital instrument in the banking sector.

2. To know the effectiveness of monetary policy on banking sector in Nigeria.

3. To consolidate banking activities in the economy.

4. To stabilize the availability of monetary in circulation in the Nigerian economy.

SIGNIFICANCE OF THE STUDY

In this course of study throughout the process I have acquired in my study which I have gone through and I have realized that the government and the banks will benefit more form this research work and even those in the department of banking and finance and other financial studies which readers will benefit form it and further looking into it I observed that it will help the global world by acquiring more knowledge through reading my research.

1.2 DEFINITION OF THE TERMS

The terms used in my research will be firstly defined as follows:

EFFECTIVENESS:

According to the oxford dictionary it is the act of producing the result that is wanted intended.

MONETARY POLICY:

According to John Orjih referred to monetary policy “as a deliberate government policy which manipulates the cost of and availability of money and credit as a means of achieving the desired level of prices employment output and other economic objectives.

BANKING: It is the business activities of the bank (s) according to Kalu (2003)”as an association of person (s) authorized by law or incorporated that carry on financial services to the general public.

NIGERIA: This is an association of people with different status that is controlled by the federal government.