Title:
MONETARY POLICY AND FINANCIAL STABILITY IN NIGERIA: A COMPARATIVE ANALYSIS

Authors:
Past. Prof. Abomaye-nimenibo, Williams Aminadokiari Samuel, Nigeria

Abstract:

The research project is carried out on "Comparative Analysis of Nigerian Monetary Policy and Financial Stability from 1990-2015". The aim is to ascertain the degree of performance of monetary policy in achieving monetary and financial stability and a sound financial system. Data were collected through the questionnaire's administration, and Pearson Product Moment Correlation Co-efficient (PPMCC) approach was used to test the hypothesis formulated for decision-making. This research's overall finding makes a vital contribution to understanding monetary policy and financial stability in Nigeria. In the process, the report has confirmed some of the findings in earlier surveys by the regulatory authorities especially with prospects for findings of the report point to the direction of informed knowledge on monetary policy and the role of CBN in ensuring financial system stability. It was discovered that the prospect for effective monetary policy in Nigeria depends mostly on sound monetary policy devoid of the pressure of financing the government deficit, restructuring of financial institutions, in order to maintain a healthy and competitive financial sector necessary for the transmission of monetary policy. The impulse to the real sector of the economy and CBN should regularly consult with banks and the financial community to make the operator appreciate its monetary and financial stability. The Central Bank of Nigeria (CBN) is urged to strive to gain a full understanding of the concept as well as design framework to use in achieving financial soundness to enable her to take a bold and proactive policy measure capable of entrenching discipline and corporate governance in the system to avert an impending crisis or drastically reduce the potential impact of the crisis on the economy.