THE IMPACT OF MONETARY POLICY TECHNIQUES ON THE ECONOMIC DEVELOPMENT IN NIGERIA (A STUDY OF SELECTED BANK IN CROSS RIVER STATE)

This study examined the Impact of Monetary Policy on the Economic Development of Nigeria .The Government in relying on the strength and relevance of money in an Economy to control its supply through the use of monetary policy. The study employed survey method to collect data. The objective of the study is to critically examine the concept of monetary policy in Nigeria and to access its effect on commercial banks loans and advances in Nigeria. The policy involves the use of both the supply and rate of interest all of which control economic activities to check price stability. In the LDCs Government also uses monetary policy to check and boost the activities of the banking sector, it uses monetary policies to control Sectoral allocation of funds through loans; hence controlling the growth and development of the sector especially banking operations. By making money cheaper through increasing its supply and lowering interest rate, thus encouraging investors to invest and boosts productivity. The Government grants boosts to sectors of high need thereby encouraging growth. The commercial banks acting as conduit of dessimenating policy guidelines and Sectoral allocation often find itself a victim. It suffers setbacks in its operations. Based on the hypotheses tested in the research the summary of the results are as follows: That monetary policy is effective in controlling commercial banks and advances in Nigeria. That there is a significant relationship between monetary control instrument and the volume of commercial bank’s loans and advances .The bank lending has an effect on the growth of the nation.The recommendations of this study were: Proper combination of full employment and economic growth, Consideration of free market economy with the policy, Employment of qualified staff by CBN to meet the formulation and implementation of monetary policy.