THE IMPACT OF DEREGULATION OF THE ECONOMY OF NIGERIAN COMMERCIAL BANKS, A RESEARCH PROJECT TOPIC ON MARINE AND TRANSPORT MANAGEMENT
ABSTRACT
 The study looks at the impact of deregulation of monetary policy on Nigerian commercial banks; A case study of some selected commercial banks in Oghara, Delta State. The monetary policies pursued prior to 1985 made the Nigeria economy price distortions created by a highly over-valued currency and inappropriate pricing of loan interest and other rates in the bank activities. The control measure introduced prior to deregulation of the monetary policy were unable to improve the banks positively. Instead, that period was characterized by short-supply of industrial inputs, plant closure, large retrenchment of workers, and shortage of goods and price inflation coupled with unfavorable interest rate. Data were gathered from some selected commercial banks in Oghara, Delta State Nigeria through issuing of questionnaires and from some secondary sources such as CBN statistical bulletin, Publications and other relevant materials. The major deregulation policies were deregulation of interest rates structure, introduction of second tier foreign exchange market. Since the Federal Government is contemplating deregulation as the only paramount solution to distorted economic structure. The study therefore recommends that banking industry (commercial banks) needs to reposition itself to take full advantage of the gains which might arise from such deregulation. Commercial banks should equally anticipate and sensitize themselves with the challenges of a deregulated economy.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Monetary Policy refers to the specific actions taken by the Central Bank (Monetary Authority) to regulate the value, supply and cost of money in the economy with a view to achieving predetermine macroeconomic goals. The Central Bank of Nigeria, like other central banks in developing countries, seeks to achieve price stability through the management of money supply. Money supply comprises narrow and broad money. The economy of Nigeria had a lot of structural distortions in the 1980’s. The economy monetary policies pursued prior to 1985 made the economy of Nigeria vulnerable to external shocks. Consequently the 1986 budget sought to deemphasize controls and adopted policy aimed at expanding the economy resources base. To attain this goal in 1986 budget at a time in the structural adjustment program which was launched in July 1980 with the introduction of structural adjustment program came to deregulation of the Nigerian economy. Monetary policy is the process by which the monetary authority of a country, like the central bank or currency board, controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
