THE ROLES AND IMPACT OF CENTRAL BANK OF NIGERIA IN NIGERIA ECONOMIC DEVELOPMENT
ABSTRACT
Without sufficient and effective development finance economic growth and development are impossible. Healthy development finance in a country ensures capital formation, higher productivity, better standard of living for citizens and stable and growing economy. 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. The state of economic development in Nigeria is invariably associated with extent of the growth and development of the financial institutions. Development finance is any finance, donation or credit geared towards achieving economic growth and development in an economic system. This paper examines and assesses the relationship and effects of Central Bank of Nigeria’s development finance policy on economic growth and development of Nigerian economy. Central bank of Nigeria development finance is the financial initiatives involved in the formation and implementation of policies, schemes, programmes and innovations for the provision and supply of credit, loans, finance, donations and funds to the productive sectors of the economy to deliver economic services in an effective, efficient and sustainable manner to achieve economic growth and development. Central Bank of Nigeria plays a development finance roles through its credit schemes like agriculture credit guarantee scheme. The major findings of the study were greater number of the productive sectors of Nigeria lack access to adequate finance and credit this reduces their total productive capacity and affects the economy negatively. However, Central Bank of Nigeria’s development finance policies and schemes have increased the productivity, investment, savings, employment and output of the Afro Asian Journal of Social Sciences Volume VII, No I. Quarter I 2016 ISSN: 2229 – 5313 2 productive sectors of Nigeria. In this case the development finance has enhanced the progress of Nigerian economy. The conclusion derived from the findings as contained in the recommendations includes: the three tiers of governments should give the central bank of Nigeria’s development finance policy and schemes necessary support, adequate attention and publicity. Sufficient and adequate fund and finance should be provided to development finance schemes. Effective monitoring mechanism and written rules and regulations should be implemented with (development goals) to guide the operation and performance of the development finance schemes. There is the necessary need to increase, improve and encourage development finance institutions in Nigeria in order to accelerate inflow of capital to the sectors of the economy to facilitate economic growth and development
