Introduction Nigeria was one of the largest growing economies in 2011. Infact, its recorded growth of ..

was the largest in the world. Far ahead of countries with more developed production processes such as , , and . But also ahead of fellow emerging markets such as The future even portends even brighter news for Nigeria, if foreign research reports are to be believed. The Goldman Sachs Next Eleven report [predicts that Nigeria will be among the next eleven countries in 2050. It predicts that the country will have an economy greater than current G8 members, Italy, France and Canada. If current growth rates places Nigeria optimisitically, future studies predict All the hype about Nigerias economic growth and the future of such growth. (Past and current growth) The bases of such as in large population and resource wealth. Future growth and predictions Yet a dysfunctional economy not anchored on any solid industry Yet, Nigeria runs a largely dysfunctional economy. The economy seems to run on autopilot with no economic plan or conscious growth policy in place. The drivers of the Nigerian economy have been largely foreign-controlled. Oil revenues continued to fund large government deficits. Foreign-owned telecommunications firms continue to post record profits. Largely the Nigerian economy is characteriesd by Disproportionately large public sector Little trickle-down effect of increasing economic wealth Foreign control of major sectors Large unemployment especially among the youth Near absent power and transport infrastructure No sector to exist as growth pole.

The Nigeria economy can then be said to grow not out of method but a combination of madness and compulsory consumption. For good measure, most reports that expect large increases in Nigerias economy predicate their prognosis on the countrys large population and its resource wealth. With 60% unemployment amongst young people, less per capita income than Namibia, Sao Tome and Nigeria, largely inadequate power and transport infrastructure and a critical mass of people to spur mass consumption if incomes rise, Nigeria has the potentials to grow at rates that can only astound. Currently, agriculture employs about 65% of the population and contributes more than 40% of GDP. Yet Nigeria imports much of the food it consumes. Wheat, rice and salt alone account for % of imports. Retail and wholesale trade are growing but at the expense of manufacturing. Small and medium scale economic activities face enormous challenges in exploiting economic opportunities. Where considerable opportunities exist in scope and complexities for Nigerian entrepreneurs to exploit, funds are scarce. is No major sectors or whats called growth pole discuss telecoms and the weakness, discuss agric No coordinated policy Growing population and lack of infrastructure

Credit growth was slow implying funds werent getting to the productive sectors of the economy. MP in Nigeria In the era of mismanagement and lack of focus of the public sector, monetary policy was looked up to by the private sector to provide the necessary fillip to galvanise private sector-led development. As head of the financial system, the CBN is expected to bring the full weight of bank credit to the pursuit of economic objectives. The Central Banks functions, encapsulated in the phrase monetary policy, involve the use of instruments at the disposal of the Central Bank to influence the availability and cost of credit/ money in order to achieve macroeconomic stability. The goals of monetary policy differ among countries. But the most common objectives include: Price stability Economic growth Stable external sector through a competitive exchange rate Stable interest rates

Central banks use monetary policy to affect economic activity through a transmission mechanism that centres on the policy rate. As the rate in which central banks discount bills to commercial banks, the central bank-induced changes in the policy rate increase or reduce the rate of growth of credit through short term market interest rates, asset prices, expectations of economic agents about direction of interest rates and the exchange rate. To be fair, the efficacy of monetary policy as a tool to champion economic growth in emerging countries is limited by uncertainties in the direction and magnitude of fiscal interventions, underdevelopment of the transmission mechanisms as a result of a poorly developed financial system and information about monetary variables. Yet, the CBN has stayed true to its constitutional and theoretical function: ensuring price stability. As if reminding us all that its lack of focus that has got Nigeria to its current dire straits, the Bank has stayed totally focused on its role of ensuring the rate of growth of money supply is stable. For starters the current regime of the CBN has done what, leading to poor credit growth and lack of lending.data But what is expected of a central bank in an emerging economy? Are the critics right? Whats Mp Whats MPO in Nigeria. history, goals, whats been used, limits Whats MP done elsewhere Goals of MP

Goals in an emerging economy It sure depends on what side of the longitude you look at the sun from. If you live in the developed west, you will tell the lie boldly to the critics. The central bank should ensure that prices grow stably. Inflation is a monetary phenomenon that the central bank should curtailed. Lest we lose our savings, lest business planning becomes difficult. Lest fixed income earners and lenders suffer drastic disincentives to engaging in economic activities.

Yet, emerging economies require only a modicum of price stability. All countries do. They require more economic growth. They require policies to bridge the wide gap between potential output and actual employment. They have large unemployed capacity, they have large markets and they require more economic impetus to galvanise economic activity. In the tradeoff between inflation and unemployment, inflation is more acceptable. Even in the face of systemic rigidities and unrealistic fiscal behavior from governments jeopardise stable economic activity and planning in most emerging countries, monetary policy should help their countries expand the limit of production. In other words, MP should get bolder. It shouldnt only try to keep the horse in the stable, it should strive to make the horse bigger. But with the distance (often large) between actual employment and potential output, economic growth should be the overriding goal of emerging market monetarty policy. While But how? What can MP contribute in Nigerias development chase Essentially, what Nigeria (and other emerging countries require) is a coordinated and integrated economic management system that focuses on common objectives. The Nigerian experience has shown that fiscal policy and monteray management achieve little when they work at cross purpose. Also, monetary policy must stop to play the role of the elder brother watching its wayward sister. Monetary policy will achieve greater efficacy when economic policies are harmonised. The overriding objectives of the managers of the Nigerian economy should be Consistent and suistainable economic growth Increasing standards of living Mild inflation Balanced growth across sectors

To achieve all of these, fiscal policy must reinforce monetary policy. Government spending must be harmonised with interest rate movements. Targeted approach to government spending will help focus sectors achieve extraordinary growth. What then is the role of monetary policy? A partner in progress. pro Much more than Coordinate

Nigeria was one of the largest growing economies in 2011. Infact, its recorded growth of .. was the largest in the world. Far ahead of countries with more developed production processes such as , , and . But also ahead of fellow emerging markets such as The future portends even brighter news for Nigeria, if foreign research reports are to be believed. but a combination of madness and compulsory consumption. (one can only wonder what growth rates Nigeria will do at credible management) Nigeria has the potentials to grow at rates that can only astound. Credit growth was slow implying funds werent getting to the productive sectors of the economy.

Add. Succour seems to tarry from the public economic policy. Fifty years of fiscal policy seems ti led to endless tales of mismanagement. In this era of mismanagement and lack of focus of the public sector, monetary policy was looked up to by the private sector to provide the necessary fillip to galvanise private sector-led development. As head of the financial system, the CBN is expected to bring the full weight of bank credit to the pursuit of economic objectives. if reminding us all that it is institutional lack of focus that has got Nigeria to its current dire straits, the Bank has stayed totally focused on its role of ensuring steady growth of money supply.

http://www.slideshare.net/lmgemerge/goldman-sachs-next-11-frontier-markets http://laomate.activeboard.com/t37036331/goldman-sachs-projection-of-the-20-largest-economies-in2050/ http://www.slideshare.net/lmgemerge/goldman-sachs-next-11-frontier-markets http://www.mapsofworld.com/world-top-ten/world-top-ten-fastest-growing-economies-map.html