TITLE PAGE

THE IMPACT OF CENTRAL BANK OF NIGERIA IN COMBATING

ECONOMIC RECESSION IN NIGERIA

BY

OKORIE AUGUSTINA
FPN/SCE/2016/2017/DAF/3561

BEING A TERM PAPER SUBMITTED TO THE

DEPARTMENT OF ACCOUNTING AND FINANCE
SCHOOL OF CONTINUING EDUCATION
THE FEDERAL POLYTECHNIC NASARAWA
P.M.B. 001, NASARAWA
NASARAWA STATE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF POLYTECHNIC DIPLOMA IN
ACCOUNTING AND FINANCE
FEDERAL POLYTECHNIC NASARAWA, NASARAWA STATE

SEPTEMBER, 2017.

i
 APPROVAL PAGE

This project work has been read and approved as meeting the requirement for the

award of Polytechnic Diploma in Accounting and Finance in Federal Polytechnic

Nasarawa.

..
Mrs. Adebayo Helen O. Date
(Project Supervisor)

..
Mr. Mustapha Hamzat Date
(Head of Department)

ii
 DECLARATION

I hereby declare that this research work has been conducted solely by me under the

guidance and Supervision of Mrs. Adebayo Helen O. Federal Polytechnic

Nasarawa.

I have successfully done my own and the writers whose works have been referred

to in this project have been acknowledged.

.. .
OKORIE AUGUSTINA Date
PDAF/3561

iii
 CERTIFICATION

This is to certify that this project has been conducted comprehensively by

OKORIE AUGUSTINA, a student with Reg. No. PDAF/ 3561 under the guidance

of Mr. Mrs. Adebayo Helen O. Federal Polytechnic Nasarawa, Nasarawa

State and has been read and approved by my supervisor for the award of

Polytechnic Diploma (PD) in Accounting and Finance, Federal Polytechnic

Nasarawa.

..
Mrs. Adebayo Helen O. Date
(Project Supervisor)

iv
 DEDICATION

This project is dedicated to God Almighty, the Alpha and Omega who spared my

life and guides me throughout the period of my study, and to the MD KON-X

Limited Arc. Okoronkwo Kanu for his immense support and encouragement

throughout the program.

v
 ACKNOWLEDGEMENT

My sincere appreciation goes to Almighty God for his mercy, love and divine

guidance that he gave me throughout my study in school.

I wish to express my gratitude to and appreciation to my Daddy and Mummy who

has bring me into this world.

My gratitude and regard also goes to project supervisor in person of Mrs.

Adebayo O. Helen who took her time, energy and guided me on execution of the

term Paper, may Almighty God continue to bless her mightifully, Amen.

My sincere appreciation goes to DMD KON- Ltd Engr. Ugoji for his advice and

for all the staff of KON-X who contributed in one way or the other to see the

success of this programme, I appreciate you all.

I also owe a debt of gratitude to my uncle and course mate who contributed

immensely to me. Thanks and God bless you all.

vi
 ABSTRACT

This research work examined the role of Central bank in in combating economic
recession. Secondary data were used in this research work. The hypothesis was
tested to examine the significance of relationship that exist between monetary
policy tools, exchange rate and interest rate on economic growth in Nigeria. The
analytical techniques used were the simple regression analysis while the student t-
ratio was used for the test. From the test, it was observed that a positive
relationship existed with negative relationship exist between the variables. Hence
the researcher concluded that monetary policy is an efficient tool for economic
growth in Nigeria. And therefore recommended that effort should be made to
improve on the quality and the timeless of data generated within and outside the
financial sector, so that actions could be taken without much delay in controlling
adverse situations.

vii
 TABLE OF CONTENTS

Title Page - - - - - - - - - - i

Approval Page - - - - - - - - - ii

Declaration - - - - - - - - - - iii

Certification - - - - - - - - - iv

Dedication - - - - - - - - - - v

Acknowledgement - - - - - - - - vi

Abstract - - - - - - - - - - vii

Table of Content - - - - - - - - - viii

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY - - - - - - 1

1.2 STATEMENT OF PROBLEMS - - - - - - 3

1.3 OBJECTIVES OF THE STUDY - - - - - - 4

1.4 RESEARCH QUESTIONS - - - - - - - 5

1.5 SIGNIFICANCE OF THE STUDY - - - - - - 5

1.6 DEFINITION OF TERMS - - - - - - 6

viii
 CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION - - - - - - - - 7

2.2 CONCEPT OF BANKING - - - - - - - 7

2.3 THEORETICAL FRAME WORK - - - - - - 9

2.4 ORIGIN AND HISTORICAL DEVELOPMENT OF THE CENTRAL BANK OF

NIGERIA - - - - - - - - - 11

2.5 OBJECTIVES AND FUNCTIONS OF THE CENTRAL BANK OF NIGERIA 14

2.6 CONTRIBUTIONS OF CENTRAL BANK TO ECONMIC DEVELOPMENT IN

NIGERIA. - - - - - - - - - 22

2.7 AN OVERVIEW OF THE NIGERIAN ECONOMY - - - - 26

2.8 TRENDING THE CENTRAL BANK OF NIGERIAS POLICIES TO

FOSTER GROWTH AND MINIMIZE UNETHICAL BANKING
PRACTICE - - - - - - - - - 30
2.9 SETBACKS TO THE IMPACT CBN IN ECONOMIC GROWTH AND
DEVELOPMENT - - - - - - - - 36

CHAPTER THREE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

3.1 SUMMARY OF MAJOR FINDINGS - - - - - 38

3.2 CONCLUSION - - - - - - - - 39

ix
3.3 RECOMMENDATIONS - - - - - - - 40
REFERENCES- - - - - - - - - 41