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Exchange rate stability and poverty reduction in Nigeria
No full textThe paper discusses the role of macroeconomic policy in achieving social as well as macroeconomic objectives in attaining poverty reduction in Nigeria. Nigeria\u27s economy is growing at an impressive rate compared to the historical. This reflects in part increased investor confidence due t o the improvement in macroeconomic management and positive dividends of the new found economic direction and general political stability. However, the renewed optimism is unlikely to be sustained if appreciable progress is not made to advance growth, general macroeconomic stability and poverty reduction. The reveals that, In order for growth to be poverty reducing, the link between economic development and labor market improvement must be strengthened significantly (or perhaps even re-established). In other words, the growth environment must be made more labor-friendly. In the short to medium term this would involve a necessary reduction in the tax wedge (payroll taxes) as well as an increase in the flexibility of the labor market. In the longer run, policies are needed that will close the mismatch of skills between labor demand and supply, which means promoting investment in human capital and education
Promoting the use of coins in Nigeria.
No full textThe main purpose of currency in any nation is to facilitate transactions and serves as a store of value. Currency is made up of banknotes and coins. While banknotes are expected to be used for relatively large value payments, coins are for low value ones. The paper examines the factors responsible for low usage of coins in Nigeria and suggest possible remedial measures. The paper observes that there had been a general low use of coins for retail transactions in Nigeria. This was reflected in the relative value of coins in circulation as against the value of currency which was as low as 0.1 7% as at 30\u27n December, 2005. Coins, as part of the instruments of the payments system, are desirable for retail transactions, to avoid rounding up of prices and forced purchase of unrequired quantities of some consumer items
Matters arising from the Introduction of the Defined Contributory Pension Scheme in Nigeria: a policy proposal
No full textIn line with global trends in pension reforms as well as stark domestic realities, Nigeria introduced the operation of the DC pension scheme on 1st July 2004. In this regard, the main thrust of the paper is to examine some salient features of the defined contributory pension scheme and their welfare implications to retirees. An overview of the defined contributory pension scheme is carried out in section 2, while country-specific experiences with the defined contributory pension scheme is reviewed in section 3. Issues of public policy on the defined contributory pension scheme are explored in section 4. Finally, section 5 contains the concluding remarks of the pape
Effective reserve management in Nigeria: issues, challenges and prospects.
No full textEffective management of foreign exchange reserves is one of the major macroeconomic objectives of countries like Nigeria. This is against the background of rapid rise and accumulated challenges currently facing many emerging economies especially oil producing countries. In Nigeria, the reserves has risen from USD4.99 billion in May 1999 to USD38.07 billion as at July 31, 2006 (see table 1). The paper examines the key issues, challenges and prospects of effective management of external reserves in Nigeria and how the Central Bank of Nigeria has fared in coping with these challenges. The recent accumulation of foreign reserves is not peculiar to Nigeria as oil producing countries with similar history and level of exports as Nigeria are accumulating even more reserves. The rising level of reserves has assisted the country in financing its budgetary programs, maintaining exchange rate and price stability and settling its external obligations, in particular the Paris Club debt, thereby enhancing its credit worthiness
Is the Nigerian curricula in economics relevant for the Nigerian economy of the 21st century.
No full textThe loopholes in Nigeria\u27s educational system have created a death of capacity in the Nigerian economy. No nation can develop without qualitative education. The paper examines the relevance of the economics curricula in Nigeria\u27s tertiary institutions in meeting the challenges of the 21st century. It highlights its problems and examines the efforts of National University Commission and Ministry of Education in meeting the challenges of economics education in Nigeria. Finally the study concludes that, the Nigerian Economics curricular is critically under developed and does not follow government economic policies, but if all the recommendations are adopted the Nigerian economics curricula will develop to acceptable international standards and will be very relevant in meeting the Nigerian economic challenges of the 21st century
Financial sector outcomes in Nigeria: A quantitative evaluation.
No full textPrior to the adoption of the economic reforms measures of the 1980\u27s, most African economies were predominantly characterised by extensive public ownership, management and control of productive and social infrastructures and institutions. This paper discuss the trend of investments and pension schemes with its risks and challenges in Nigeria. The study however confirmed the non applicability of the financial reform theory hypothesized by McKinnon and Shaw in Nigeria \u27This Paper quantitatively examine the outcomes of financial sector reforms in Nigeria with a view to validating the applicability of the Mckinnon Shaw hypothesis of financial liberalization. The impact of reforms on savings mobilization, growth in real interest rates and other economic development indices in the last two decades are corollary objectives The paper also seeks to ascertain the nature and magnitude of the contribution of reforms to investment and the growth of the economy from \u271981 to 2004. The study concluded that, commended current efforts of government in strengthening the prudential supervision of the financial institutions The study however confirmed the non applicability of the financial reform theory hypothesized by. McKinnon and Shaw in Nigeria
The challenges of sustainability of the current exchange rate regime in Nigeria.
No full textThe motive behind initiating an exchange rate policy, an integral element of monetary policy, is to preserve the value of the domestic currency, maintain favorable external reserves and ensure the realization of price stability in the domestic economy. The pursuance of these goals is to ensure external balance without compromising the need for internal balance and macroeconomic stability. In the quest for corrective measures to minimize distortions in the foreign exchange market, the monetary authority initiates the current exchange rate reform. the objective of this paper is to discuss the challenges of sustaining the recently introduced exchange rate regime in Nigeria. The study reveals that, the choice of an exchange rate by a given country depends on the policymaker\u27s economic objectives, the source of shocks to the economy and the structural characteristics of that economy. However, the overall consideration for choosing a floating exchange rate is the need to safeguard against destabilizing speculations and the establishment of monopoly positions by some operators in the market. This is because the exchange rate policy is a veritable tool used for directing the trend in domestic prices along a sustainable path. It is also a valuable instrument when used in a proactive manner
Risk-based capital standard for banks: a critique
No full textThis paper presents a critique of the form of the risk- based capital standard known as Basel I & II. It examines the likely implication of the Based II capital accord for the Nigerian banking system and advises that the CBN should consider carefully the cost of implication of the new Accord before developing a timetable for its implementation
Imperative of national savings: A case for adoption of appropriate benchmark price for crude oil.
No full textBudgeting involves the design of plans that aligns expected financial resources and expenditure to accomplish specific national goals and objectives. It is in this regard that this paper provides a simple framework for deriving an acceptable bench-mark price for crude oil for budgeting purposes. This is aimed at enabling the elimination of subjectivity in budgeting process and promote understanding between all the stakeholders in order to fast track the process of passage of the appropriation bill. Following a brief introduction, the paper examines the need for national saving fund and constitutional provisions for national savings. Section three focuses on the international experiences while section four presents the framework for deriving appropriate benchmark price for the national budget and the last section concludes the article
Investments and risk management under the new pension scheme.
No full textPension today, has become a topical issue. one that has engaged the commitment of government, attention of employers and workers not only in Nigeria but also in many developing and emerging economies of Africa, Asia and Latin America This paper discuss the trend of investments and pension schemes with its risks and challenges in Nigeria. The study however confirmed the non applicability of the financial reform theory hypothesized by McKinnon and Shaw in Nigeria.\u27 . The National pension Commission guidelines as mentioned earlier, are designed to ensure transparency, integrity and objectivity in the vestment process. and to ensure that the investment decision taken by the PFAS adequately protect pension fund assets against inflation erosion and safeguard the retirement benefits of contributors However, the guidelines will be subjected to period/regular review by the Commission in line with changes in the market and regulatory environment