Monetary policy and agricultural development in nigeria pdf

Data on relevant variables were collected from the central bank of. This study investigated the effect of fiscal policy on economic growth in nigeria. Trade wars and implications for monetary policy in nigeria 16. But there is more to monetary policy than the impact of monetary policy on macroeconomic outcome in nigeria, so as to draw useful lessons from her inception. Despite the strategies adopted by various governments in nigeria to address agriculture and rural underdevelopment problem, the story remains the same. Monetary policy is an instrument given to the central bank of nigeria cbn by the federal government that is, it is a function which is a documentary policy to control the aggregate demanded in the circulation or cost. Much has been documented in financial and monetary economics literature about the interest rate channel of monetary policy mishkin,2007.

The paper examined the impact of monetary policy on agricultural sector performance in nigeria, using annual data spanning the period 1981 to 2016. Introduction nigeria is a country blessed with vast human and natural resources. Request pdf the impact of monetary policy on agricultural development in nigeria 1970 2010 the need to correct the existing structural distortions in nigerian agricultural sector and put the. Ascertain the effect of monetary policy on cooperant factors in economic growth in nigeria. Agriculture, development, government expenditure, growth, unemployment. This research work assesses the impact of agricultural policies on nigerian economy. That includes credit, cash, checks, and money market mutual funds.

Development of nigerias agricultural subsector will be imperative if meaningful and sustainable national development is envisaged. Monetary policy and inflation in nigeria economy project. Dec 01, 2015 monetary policy shocks and agricultural output growth in nigeria doi. Other measures adopted to increase agricultural output in nigeria were in terms of credit schemes, which include the nigerian agricultural cooperative and rural development bank nacrdb, currently referred to as agricultural. This study analysed the effectiveness of monetary policy measures in driving agricultural output in nigeria between 1981 and 2016. Request pdf the impact of monetary policy on agricultu ral development in nigeria 1970 2010 the need to correct the existing structural distortions in nigerian agricultural sector and put the.

Examine the effect of monetary policy on inflation in nigeria. Effect of monetary policy on agricultural sector in nigeria. This study uses secondary data which were obtained from the statistical bulletin of the central bank of nigeria cbn covering the period from 1985 to 2015. Monetary policy in a simplified analysis amount to the determination of the optimal quantity of money or in a dynamic sense, the optimal rate of growth money stock in an economy. Empirical investigation of the impact of monetary policy on manufacturing sector performance in nigeria 1986 2012 by imoughele, lawrence ehikioya. The study shall be carried out using secondary time series data, for a span of 36 years that is from 1980 to 2015 which is sufficient and suitable for conducting a research, making new findings and relevant recommendations. Doc the effect of monetary policy on agricultural output. Central bank of nigeria shortterm monetary policy framework in nigeria before 2002, the central bank of nigeria had designed monetary policy in line with fiscal duration of one year monetary policy had always faced the problem of non committal to both intermediate and ultimate targets the optimal longterm policy was not consistent.

Monetary policy and central bank of nigeria project topics. The study empirically examines the impact of monetary policy on industrial growth in nigerian economy, in line with the objectives of this study, secondary data were obtained from central bank of nigeria statistical bulletin covering the period of 1970 to 2010. Macroeconomic policy and agricultural output in nigeria. The structure of the nigerian economy is typical of an underdeveloped country. Request pdf the impact of monetary policy on agricultural development in nigeria 19702010 the need to correct the existing structural. The positive impact of these policy tools on economic performance will help the country. Monetary policy and its effectiveness on economic development in nigeria author. The effect of fiscal policy on economic growth in nigeria. Apr 16, 2020 monetary policy is a central banks actions and communications that manage the money supply. Institutions, macroeconomic policy and the growth of the agricultural sector in nigeria. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the nigerian economy.

Adefeso and mobalaji 2010 wrote on the fiscal monetary policy and economic growth in nigeria. Monetary policy and central bank of nigeria project. It is noteworthy that nigerias total agricultural land is. The impact of monetary policy on agricultural output in nigeria. Monetary policy involves the management of money, the supply of money and interest rate. In nigeria, the monetary policy is the macroeconomic policy laid down by the central bank of nigeria. Acgs agricultural credit guarantee scheme adb african development bank afed african foundation for environment and development aids acquired immunodeficiency syndrome apb annual performance benchmark app agricultural promotion policy arc annual rate of change ata agricultural transformation agenda, au african union. Pdf effect of monetary policies on agricultural output in. The legal backing for monetary policy by the bank derives from the various statutes of the bank such as the cbn act of 1958 as amended in cbn decree no. In examining the effects of monetary policy on economic activity and growth, it is useful, both for conceptual and for policy reasons, to distinguish between longterm and shortterm effects or, alternatively, between permanent and transitory effects.

This research seeks to reevaluate the impact of monetary policy on agricultural output in nigeria. Lastly, it would provide policy recommendations to policy makers on ways to make the nigerian agricultural sector vibrant through the monetary policy. Nigeria s development finance policy and schemes necessary support, adequate attention and. The most important of these forms of money is credit. Monetary policy and its effectiveness on economic development. Macroeconomic policies and agricultural development in. Monetary policy shocks and agricultural output growth in nigeria doi. The challenges of agriculture and rural development in africa. The effect of monetary policy on agricultural output in nigeria. Identify the channel through which monetary policy influences the performance of banking sector in nigeria. It is therefore, in realization of this fact that the government has adopted a.

Examine the impact of banking sector performance on economic development in nigeria. However, study of this nature is known to be subject to a number of problems or constrains, which are peculiar to the nigerian society such as financial constraints. Examine what changes in profitability resulted from changes. The impact of monetary policy on agricultural development in nigeria. Agricultural sector performance and nigerias economic growth. Policy measure of development finance intervention which supplies capital in form of finance and credit to the productive sectors of the economy is important and in fact necessary for meaningful economic growth and development. An analysis of federal government expenditure and monetary. Monetary policy, growth, development, optiaml rate, foreign investment created date. Agricultural development intervention programmes in nigeria. Given its significant role in providing employment to about 60 % of the economically active population and 70% of the countrys poorest communities, agriculture has huge potential for achieving. Institutions, macroeconomic policy and the growth of the.

Monetary policy actions and agricultural sector outcomes. The need to correct the existing structural distortions in nigerian agricultural sector and put the economy on the path of sustainable growth is. The contribution of monetary policy to economic growth. Measuring the effects of monetary policy innovations in nigeria. Similar evidence was also found for the gambia, guinea, ghana and sierra leone using the same models. To achieve this major objective, the study made use of broad money supply m2. Monetary policy is the policy adopted by the monetary authority of a country that controls either the interest rate payable on very shortterm borrowing or the money supply, often targeting inflation or the interest rate to ensure price stability and general trust in the currency.

International journal of development and economic sustainability vol. Statistical bulletins published by central bank of nigeria, and. Main library, ambrose alli university, ekpoma, nigeria. This study investigated the impact of fiscal and monetary policy on nigerian economic growth from 1981 to 2015, with the interest in exploring which of fiscal or monetary policy has been effective in propelling economic growth in nigeria and how gdp growth responds to the monetary and fiscal policy shock. Agricultural land and development authority nalda, president yar adua 7point agenda. The impact of fiscal and monetary policy on nigerian. Monetary policy increases liquidity to create economic growth. The effect of monetary policy on agricultural output in. Monetary policy department, central bank of nigeria, head office, central business district, abuja, nigeria. Central bank of nigeria understanding monetary policy series. Assessing the effect of monetary policy on agricultural. Development of nigeria s agricultural subsector will be imperative if meaningful and sustainable national development is envisaged.

Pdf effect of monetary policies on agricultural output. The major objective of this study is to empirically analyze the impact of monetary policy on the economy of nigeria. The impact of monetary policy on agricultural output in. They are tools for economic management that brings about sustainable economic growth and development. The need to determine the factors that promote investment decisions in agriculture both on the part of the government and the citizenry in order to put the economy on the part of sustainable growth and development prompted this study.

Specifically, the impacts of money supply, prime lending rate, deposit money bank credits to agriculture and inflation. Monetary policy shocks and agricultural output growth in. Productivity, credit policies, agricultural development, monetary policies and cross river state. It is noteworthy that nigeria s total agricultural land is. The monetary policy tools are classified as direct and indirect or market based tools. Generally, this study will dwell on the overview of monetary policy situations in the nigerian economy. Between 2011 and 2012, the primary sector, in particular the oil and gas sector, dominated gdp, accounting for over 95 per cent of export earnings and about 85 per cent of government revenue. Agricultural development, a subset of economic development, implies a. Agricultural development intervention programmes in.

The broad objective of the study is to analyze the effectiveness of government annual budgetary allocation to agriculture and the role of monetary policy. The state of economic development in nigeria is invariably. Also, in 2011, the agricultural sector performed below the projected 7. Louis introduction the question of the effectiveness of monetary policy is a longstanding issue in the literature of monetary economics and central banking. Monetary policy tools are techniques used by cbn to influence the prices of money in an economy. The study covered the key issues on nigerian agricultural policies especially as it concerned the formulation and implementation of agricultural policies and programmes as well as their achievements in the agricultural sector in nigeria. It is the demand side economic policy implemented by the government to achieve macroeconomic objectives like growth, consumption, liquidity and inflation. Macroeconomic policies and agricultural development in developing countries. In order to meet the objectives of this study the interest rate channel of monetary policy will be utilised. Federal republic of nigeria implementation of the sdgs a. Implications for food security and sustain the sector to play this assigned role with special emphasis on the attainment of a sustainable level in the production of basic food 11. Central bank of nigeria s monetary and credit policy guidelines and money supply do have impact on the level of outputs. Babajide, isibor areghan akhanolu and okafor tochukwu subject. The impact of monetary policy on agricultural development in.

Impact of monetary policy on industrial growth in nigeria. The impact of monetary policy on agricultural development. The fundamental problem of any government is it economic or otherwise its implementation. A major challenge facing nigeria is the inability to capture the. An expost facto investigation seeks to reveal possible relationships by observing an existing condition or state of affairs and searching back in time for plausible contributing factors. Fiscal policy is used in order to compliment the effect of monetary policy of the central bank of nigeria cbn. With the end of the civil war in 1970, which disrupted economic activities and an upsurge in wages due to revenues from the oil boom, inflationary trends were noticed in the economy. Agricultural development intervention programmes in nigeria 1960 to date. Monetary policy in the nigerian context refers to the actions of the central bank of nigeria to regulate the money supply which could be through discretional monetary policy instruments such as the open market operation omo, discount rate, reserve requirement, moral suasion, direct control of banking system credit, and direct regulation of. Abstract in this study we set out to examine the impact of institutional support and macroeconomic policy on the growth performance of the agricultural sector in nigeria. Agricultural policies in nigeria 190078 springerlink. If the monetary policy have been effectively used, there will be low inflationary trend in the economy, there by increasing or enhance the purchasing power of the citizens. A general overview of monetary policy and inflation in the nigerian economy is the foundation upon which the project is developed.

Assessing the effect of monetary policy on agricultural growth and. This study analysed the impact of macroeconomic policy i. Monetary policy and its effectiveness on economic development in nigeria. Does monetary policy matter for agricultural sector. Agriculture, monetary policy shock, nigeria jel classification e52 i. Their major objective was to reestimate and reexamine the relative effectiveness of fiscal and monetary policies on economic growth in nigeria using annual data from 1970 to 2007. Unlike fiscal policy which relies on government to spend its way.

The industrial sector accounts for 6 per cent of economic activity, while in 2011, the manufacturing sector contributed only. The significance of agriculture in bringing about economic growth and development of a nation cannot be underestimated, the reason why a nation possesses sustainable food security, is because it produces enough food to feed her citizens and even export. It is the most popular instrument for central banks, nevertheless isolation of this monetary policy. Background by the time nigeria became politically independent in october 1960, agriculture was the dominant sector of the economy, contributing about 70% of. The study made use of expost facto research design. Monetary policy shocks and agricultural output growth in nigeria. The study would also provide an econometric basis upon which to examine the effect of monetary policy on agricultural development in nigeria. Monetary policy and the economy in south africa covers both modern theories and empirical analysis, linking monetary policy with relating house wealth, drivers of current account based on asset approach, expenditure switching and income absorption effects of monetary policy on trade balance. Monetary policy and inflation in nigeria economy project topics. The conduct of monetary policy by the central bank of nigeria since 2008 has been designed to. May 03, 2016 the research was adopted to examine the effect of fiscal policy on economic growth in nigeria. Onyido 1999 in the same vein took another sectorial look at the effectiveness of monetary policy in nigeria but diverted his attention to the agricultural sector. The challenges of agriculture and rural development in.