University of Nigeria Virtual Library

Serial No

Author 1 UMECEGUKWU, C.

Author 2

Author 3

Title The Continued Depreciation Of The Value Of The Nations Currency: What hope for

the survival Of The Economy?

Keywords

Description Term Paper For The Course GSP 104 (Social Sciences)

Category

Pharmacy

Publisher

Publication Date

June, 2008

Signature

UNIVESITY OF' NIGERIA, NSUKKA. P z! 1 DEPARTMENT OF PHARMACY

TOPIC:

THE CONTINUED DEPRECIATION OF THE VAL

CURRENCY: WHAT HOPE FOR THE SURVIVAL OF OUR ECONOMY.

A TERM PAPER

PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE COURSE

G S 104

(SOCIAL SCIENCES 11)

BY

UMECEGUKWU C

k9,

JUNE, 2008.

TITLE PAGE

THE CONTINUED DEPRECIATION OF THE VALUE OF THE NATION'S

CURRENCY: WHAT HOPE FOR THE SURVIVAL OF OUR ECONOMY.

DEDICATION

I dedicate this research work to almighty God. And mostly

Professor Charles Soludo and the appreciation of value of the

nation's currency.

iii

This research work, apart fiom partially fblfilling the requirement for

SOCIAL SCIENCES II course is aimed at the hope for the survival of our

economy, and the background check on the continued depreciation of the

value the nation's currency

It is divided into four chapters, Chapter one gives insight into meaning

of the nation's currency, second Chapter deals with general review of the

economy of Nigeria, stability and instability including the causes of

instability and effect to the economy.

Chapter three gives comprehensive information of the value of our

nation currency, causes of the depreciating value in the currency, also the

incisive merits and demerits.

Chapter four discusses the effect of the depreciating currency to the

economy; the positive and negative effects. It also draws this research work

to the possible solutions.

ACKNOWLEDGEMENT

I hereby express my sincere gratitude to my parent Mr. & Mrs.

Umecegukwu, my special brother and my sister, and all those who

contributed, in a special way, to the success of this term paper.

I also thank the Department of Central Bank of Nigeria, for providing

very relevant and up to date material on Depreciation of the Value of

the nation's currency, and my lecturer Mrs. Terry who directed my

effort towards the success of this term paper.

TABLE OF CONTENTS

Title

page ................................................................................................... i

. . Dedication ............................................................................................ 11

... Preface. .............................................................................................. . i i ~

Acknowledgement.. ............................................................................... .iv

Table of content.. .................................................................................... v

Chapter 1

INTRODUCTION.. ...................................................................... -1 . * I . I D e h t m n of terms.. ......................................................... 1

Chapter 2

2.1 The economy of Nigeria.. ................................................ ..3

2.2 The stability of the economy.. ........................................... ..6

2.3 The Cause of unstable economy. ...................................................... 6

2.4 The effect of unstable economy.. ....................................... .7 Chapter 3

3.1 Value of our national currency ......................................... .9

3.2 Causes of the depreciating value in the currency. ................... 10

........ 3.3 Merits & Demerits of the depreciating value in currency.. 10

Chapter 4

4.1 The effect of the depreciating currency to the economy ....... 12

4.2 The positive effects ................................................... 12

. 4.3 The negative effects ................................................... 1 3

4.4 The possible solution .................................................. 13

4.5 Summary ................................................................ 15

BIBLIOGRAPHY

CHAPTER ONE

INTRODUCTION AND DEFINATIONS OF TERMS

1.1 INTRODUCTION

The Central Bank of Nigeria (CBN) takes a number of monetary policy decisions,

including a change in the level of money supply (M2), the Minimum Rediscount Rate

(MRR), or a change in the exchange rate. The central bank defines money supply in two

ways: narrow and broad money. Narrow money (MI) is defmed to include currency

in circulation plus current account deposits with commercial banks. Broad money

measures the total volume of money supply in the economy and is defined as narrow

money plus savings and time deposits with banks including foreign denominated

deposits. There is excess money supply when the amount of money in circulation is

higher than the level of total output of the economy. When money supply exceeds the

level the economy can efficiently absorb, it dislodges the stability of the price system,

leading to inflation or higher prices of goods. In this brief, we shall examine how a

change in money supply by the CBN affects people and the economy. In subsequent

series, we shall look at the effects of an increaseldecrease in interest rate and the

effects of depreciatinglappreciating the exchange rate on the people and the economy.

When the CBN changes the level of money supply, it does so through the control of the

base money. Base money is made up of currency and coins outside the banking

system plus the deposits of banks with the central bank. If the central bank perceives

that there is too much money in circulation and prices are rising (or there is potential

pressure for prices to rise), it may reduce money supply by reducing the base money.

To reduce the base money, the central bank sells financial securities to banks and the

no-bank public so as to reduce the ability of deposit money banks to create new money.

1.2 DEFINATION OF TERMS

Without money as a medium of exchange, most economic transactions would virtually be

impossible. The second fbnction; a "continued depreciation of standard of value " or

,,accounting unit", gives a common unit by which to measure the various kinds of assets of

business and human endeavors that is loss in value.

CHAPTER TWO

2.1 THJ3 ECONOMY OF NIGERIA

The petroleum-based economy of Nigeria, long hobbled by political instability,

corruption, and poor macroeconomic management, is undergoing substantial economic

reform under the new civilian administration. Nigeria's former military rulers failed to

diversify the economy. The economy has overdependence on the capital-intensive oil

sector, which provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of

government revenues. The largely subsistence agricultural sector has not kept up with

rapid population growth, and Nigeria, once a large net exporter of food, now imports some

of its food products. In 2006, Nigeria successfully convinced the Paris Club to let it buy

back the bulk of its debts owed to the Paris Club for a cash payment of roughly $12 billion

(USD)~~].

Nigeria's economy is struggling to leverage the country's vast wealth in fossil fuels

in order to displace the crushing poverty that affects about 57 percent of its population.

Economists refer to the coexistence of vast natural resources wealth and extreme personal

poverty in developing countries like Nigeria as the ''resource curse". Nigeria's exports of

oil and natural gas-at a time of peak prices-have enabled the country to post

merchandise trade and current account surpluses in recent years. Reportedly, 80 percent of

Nigeria's energy revenues flow to the government, 16 percent covers operational costs,

and the remaining 4 percent go to investors. However, the World Bank has estimated that

as a result of corruption 80 percent of energy revenues benefit only 1 percent of the

population. During 2005 Nigeria achieved a milestone agreement with the Paris Club of

lending nations to eliminate all of its bilateral external debt. Under the agreement, the

lenders will forgive most of the debt, and Nigeria will pay off the remainder with a portion

of its energy revenues. Outside of the energy sector, Nigeria's economy is highly

inefficient. Moreover, human capital is underdeveloped-Nigeria ranked 15 1 out of 177

countries in the United Nations Development Index in 2004-and non-energy-related

hhstructure is inadequate.[*]

4 Investment

Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player. Profitable niche markets outside the energy sector, like specialized telecommunication providers, have developed under the government's reform program.

External trade

Nigeria's exports in 2006

In 2005 Nigeria imported about U S 2 6 billion of goods. In 2004 the leading sources of imports were China (9.4 percent), the United States (8.4 percent), the United Kingdom (7.8 percent), the Netherlands (5.9 percent), France (5.4 percent), Germany (4.8 percent), and Italy (4 percent). Principal imports were manufactured oods, machinery and f transport equipment, chemicals, and food and live animals.[

Debt

In 2008 Nigeria's external debt was an estimated US$3.3 billion.

Foreign investment

In 2007 Nigeria received a net inflow of US$5.2 billion of foreign direct investment (FDI), much of which came from Nigerians in the Diaspora. Most FDI is directed toward the energy and Banking

Economic assistance

As of October 2005, World Bank assistance to Nigeria involved 19 active projects with a total commitment value of about US$1.87 billion. Since Nigeria joined the World Bank in 1961, the World Bank has assisted it on 120 projects. In October 2005, Monetary Fund approved a two-year '>olicy support instrument" designea ro promore me growth of the non-oil sector and to reduce poverty.[21

Data

GDP: purchasing power parity - $359.4 billion (2007 est.)

GDP - real growth rate: 7% (July 2006 est.)

GDP - per capita: purchasing power parity - $2660 (2007 est.)

GDP - composition by sector: agriculhcre: 2 6.8%

industry: 48.8% services: 24.4% (2005 est.)

Inflation rate (consumer prices): 7% (2006 est.)

Labor force: 57.21 million

Labor force - by occupation: agriculture 70%, industry lo%, services 20% (1999 est.)

Unemployment rate: 2.9% NA (2005 est.)

Budget: revenues: $17 billion expenditures: $13.54 bill ion induding capital expenditures of $NA (2005 est .)

Electricity - production: 15.59 billion kwh (2003)

Electricity - consumption: 14.46 billion kwh (2003)

Electricity - exports: 40 million kwh (2003)

Oil - production: 2.35 million bbVday (July 2006 est.)

Oil - consumption: 3 10,000 bbllday (2003 est.)

Agriculture - products: cocoa, peanuts, palm oil, maize, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish

Exports: $72.16 billion f.0.b. (2005 est.)

Exports - commodities: petroleum and petroleum products 95%, cocoa, rubber

Imports: $45.95 billion f.0.b. (2005 est.)

Imports - commodities: machinery, chemicals, transport equipment, manufactured goods, food and live animals

Debt - external: $3.3 billion with London Club (2006 est.)

Economic aid - recipient: rPvlF $250 million (1998)

Exchange rates: Naira (NGN) per US$1 - 117.5 (2007), 120 (2006), 128 (2005), 132.89 (2004), 129.22 (2003), 120.58 (2002), 1 1 1.23 (200 1)

External Reserves: $59 billion (2008)

2.1 STABIJJ'I'Y OF THE ECONOMY

Professor Chukwuma Soludo, the Chairman, Central Bank of Nigeria on Tuesday

August 14,2007 launched the strategic plan for the re-denomination of the nation's

currency. The two key components of the plan are: (a) the Naira will revert to its pre-

1986 level of about one Naira, twenty-five Kobo to one United states (US) dollar

m1.25 = US $1); and (b) the highest denomination, which is N1,000.00 now, will be

N20.00 as fiom August next year.

Citing Germany and other Latin American countries as well as Ghana as models where

such a policy was introduced and successfi~l, the CBN Chairman stated that the

Nigerian economy stands to reap tremendous benefits from the proposed plan,

especially in the short-run and medium term. Proponents of the proposed policy

identify the following as some of the key advantages: (a) the easy exchange of

currencies or the convertibility of the Naira, and/or the dollarization of the domestic

economy; (b) stable and reliable exchange rate regime in the long-run; (c) expansion of

scope of activities on the capital side of foreign trade balance sheet, the balance of

payments (BOP); (d) reduce the cost of printing and minting of Naira and coins in the

long-run as fewer denominations would now be available; (e) reduce the cumbersome

nature of handling currency notes by encouraging sophisticated means of payments

such as plastic money (for example Visa card, Mastercard, Fast cash and other local

credit cards) and wire/electronic transfers; and (f) promote exports (especially of non-

oil exports) as Nigerian goods would become cheaper and attractive to foreigners.

2.2 THE CAUSES OF UNSTABLE ECONOMY

The fluctuation of economic activity in Nigeria business cycle since independent era is disturbing the economic long term growth trend. The cycle involvement and shift over time between periods of relatively rapid growth of output (recovery and prosperity), and periods of relative stagnation or decline (contraction or recession) is an endangered economic crisis of great concern. These fluctuations are often measured using the real gross domestic product. Despite being named cycles, these fluctuations in economic growth and decline do not follow a purely mechanical or predictable periodic pattern. The economist refers to this menace as an economic crisis; meaning a sharp transition to a

7 recession. The nation has observed a significant decline in economic activity spread across the economy, lasting more than a few months, with simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. We have observed sharply rising prices (inflation) as well as stagflation

Starting in 1949, a major feature of Nigeria 's economy in the 1980s, as in the 1970s, was its dependence on petroleum, which accounted for 87 percent of export receipts and 77 percent of the federal government's current revenue in 1988. Falling oil output and prices contributed to another noteworthy aspect of the economy in the 1980s- which could be summed up as an economic depression. The decline in per capita real gross national product, which persisted until oil prices began to rise in 1990. Indeed, GNP per capita per year decreased 4.8 percent f?om 19 Nigeria's ~Iassification by the World Bank as a Ic for the first time since the annual World Development Keport was instituted m rr /a. in 1989 the World Bank also declared Nigeria poor enough to be eligible (along with countries such as Bangladesh, Ethiopia, Chad, and Mali) for concessional aid fiom an affiliate, the International Development Association (IDA).The economic collapse in the late 1970s and early 1980s contributed to substantial discontent and conflict between ethnic communities and nationalities, adding to the political pressure to expel more than 2 million illegal workers (mostly from Ghana, Niger, Cameroon, and Chad) in early 1983 and May 1985.The lower spending of the 1980s was partly the result ofthe structural adjustment program (SAP) in effect from 1986 to 1990, first mooted by the International Monetary Fund and carried out under the auspices of the World Bank, which emphasized privatization, market prices, and reduced government expenditures. This program was based on the principle that, as GDP per capita falls; people demand relatively fewer social goods (produced in the government sector) and relatively more private goods, which tend to be essential items such as food, clothing, and shelter

2.3 THE EFFECT OF UNSTABLE ECONOMY

On the recommendation of the World Bank, Nigeria began to liberalize its financial sector in 1986. Contrary to the prediction of fmancial repression theory, savings and investment decline in the wake of banking deregulation. By 1995, the Nigerian fmancial system was in a state of collapse.

The paper locates the main failure of Nigeria's financial deregulation in the political and institutional setting of reform. The institutional mechanisms needed to supervise and regulate banking under the new system were absent while private sector banking capacities were weak. Moreover, fmancial liberalization was quickly captured by a clientalist state as a means of reallocating rents to strategic constituents. An additional

8 precipitating factor was macroeconomic instability. The paper points to the importance of incorporating political and institutional variables into any model of financial reform or transformation.

CHAPTER THREE

3.1 VALUE OF OUR NATIONAL CURRENNCY

Nation's currency remains one of its symbols of power and authority. Just as the national flag, every country's currency is expected to be highly revered and respected by the citizenry.

This is pertinent because in all societies, money has always served as a medium of exchange, a store of value, and a standard of value. It is a medium that usually facilitates trade and economic transactions between nations, individuals and organizations.

However, while in some countries, currency abuse attracts a jail term, the situation in Nigeria is different, as people treat the naira with almost gross disdain.The various forms of currency abuse identified in the 2007 Central Bank of Nigeria (CBN) Act include squeezing, spraying at parties, cutting, writing on the notes, matching or stepping on them, among other foms of abuse. CBN authorities are pointing fingers at the transporters, market women, religious

organizations and some fun loving money bags who relish in spraying crisp notes at

parties.

With the benefit of hindsight, and experience, the Central Bank of Nigeria has

acknowledged that the nation's currency, (the naira) has been severely abused and battered

physically or in terms of its value by various group of users within the country.

Top on the categories of users known to have engaged in what the CBN Act 2007, now

recognizes as an offence punishable with fines and jail term are numerous church

organizations, transporters, market women, traders, as well as several influential people in

the society who, delight in spraying the notes on entertainers and celebrants at parties and

other social events. Similarly, environmental factors that have contributed to dirty notes in

the country could be the high humidity and dust in various locations where businesses are

conducted.

Notwithstanding, economy experts, including the Central Bank of Nigeria have argued

that one of the reasons people handle the nation's currency with less respect than is

desirable was mass illiteracy among majority of Nigerians, especially the business

community.

3.2 CAUSES OF TKE DEPRRECIATING VALUE IN THE CURRENCY

The proposal by the governor of the Central Bank of Nigeria th;

would be redenominated next year was seen as a logical outcome of th I

financial position; it therefore came as a shock when Abuja announced ~ t s suspension.

What lay behind the move? Neil Ford and Anver Versi report. Following on ftom

Nigeria's deep-seated banking reforms and landmark debt repayment deal in 2006, the

Central Bank of Nigeria (CBN) announced in August that it would make the Naira hlly

convertible from 1 January 2009. The decision should have provided more reassurance

that the country's economic recovery is well on track. However, the revelation was

overshadowed by Abuja's decision, which came out of the blue, to block a plan to re-

denominate the Naira by August 2008. At present, the value of the Naira is heaviIy

regulated by the CBN, which sets a fixed exchange rate and limits exchanges with foreign

currencies. Many African currencies are subject to the same controls and regulations in

order to protect what are perceived to be vulnerable economies. In many ways, such

regulation mirrors the same tight controls that many Afiican governments impose on fuel

prices: it is easy to see why it is done but tight control is a sign of economic weakness

rather than strength. The CBN currently sells foreign currency by auction and Nigerian

businesses are required to apply for dollars for a trade transaction, lengthening the process

and adding unnecessary red tape. As a result, making the Naira hl ly convertible could

enable much greater and more flexible flows of money in and out of the country.

3.3 MERITS & DEMEEUTS OF THE DEPRECIATION

a) Nigerian importslexport

b) Short and long-term capital flows abroad by Nigeria businesses as against short and long-term capital in-flows from foreign businesses and investors.

c) Other public and private payments fiom Nigeria to other countries as against other pubIic and private payments fiom abroad to Nigeria.

We have wrongly assumed in the prevailing logic that all economies are equally

developed, with same education and technology level, with equally developed capital and

financial markets, efficiency, productivity level, real income levels, etc.; hence all

11 economies are required to compete by the same rule. To put it simple, the conventional

theory that draws its logic from the argument that when a country's currency exchange

rate, due to a deficit in exportlimport and capital in- and outflow, has to depreciate to

balance out the imbalance in trade, with local products becoming cheaper and

consequently leading to higher demands of locally produced products and to growth

neglects the specific domestic factors, such as the social conditions, the structure of

industries, structure of importkxport items, income disparities, other specific geographic

and environmental factors, etc., that are essential for economic growth. Empirical

observations have shown that, in fact, because these important domestic factors are

neglected, devaluations have had the contrary effect. There is no known developing

country where devaluation has actually lead to sustainable growth and creation of wealth

for the masses. Instead, they have often lead to a series of problems that have sooner or

later lead to the next devaluation, starting off a spiral of economic decline.

CHAPTER FOUR

4.1 THE EFFECT OF TRE DEPRECLATING CURRENCY TO TME ECONOMY

The dynamics of money and exchange presents four possible scenarios: Scenario 1 : Nominal value of money remains constant (or unchanged); and price (and price level) of good orland service remains unchanged between two or more periods.

Scenario 2: Nominal value of money remains constant (or unchanged); while price (and price level) of good or/and service changes (increases or decreases) between two or more periods.

Scenario 3: Nominal value of money changes (increases or decreases); while price (and price level) of good or/and service remains constant (or unchanged) between two or more periods.

Scenario 4: Nominal value of money changes (increases or decreases); and price (and price level) of good or/and service changes (increases or decreases) as well between two or more periods.

Scenario 3 describes the situation Nigeria will face once the proposed plan comes into force come 2008. The effect of changes or otherwise in nominal value of money is change in the price of goodslservices or (and price level) on the real value of money and its repercussion on trade can be analyzed as follows:

Under scenario 3, the effect on the real value of money could be of two forms as. The fmt possibility, which results from a fiftyfold (or 5,000 per cent) increase in the nominal value, is an increase in the time value of money indicating an appreciation of the purchasing power from N1,000.00 worth of good o r h d service in August 2007 to N50,000.00 worth of good/service in August, 2008.

4.2 THE POSITM EFFJWTS

Government's ability to change the import-dependent consumption pattern of

Nigerians: central to the successfid implementation of the proposed policy is the

reorientation of the consumption habits and pattern of Nigerians in favour of locally

manufactured goods and services. This is important as the theory of consumer

preference tells us, if near or perfect substitutes to imported commodities are not made

13 available at reasonable rate, Nigerians would be willing to pay higher prices in order

to maintain their tastes and protect the joy/satisfaction they derive from the imported

goods and services rather make do with substandard ones produced in the country. By

the way, an important question to ask is, is it possible to fundamentally change

people's taste, consumption pattern within the present context in the short run or even

within the medium term? The answer may not be far from no.

4.4 THE NEGATIVE EFFECT

It therefore appear that the CBN is in a hurry to accomplish within a short term

what has taken other countries careful planning, commitment and decades to establish.

We have demonstrated elsewhere that the Nigerian economy has in the last eight years

performed appreciably well especially in the area of macro economy, but poorly in the

socioeconomic sphere and ecological department. To transform Nigeria into a

formidable economic engine room in the sub-region, what is required at the moment is

the consolidation of the gains of the current reform Progamme and the urgent need to

address the problems of those departments that the implementation of its national

economic empowerment and development strategy (NEEDS) seemed to have done

poorly in the last seven years. To this end, the

steps to diversify the economy through the sys

agricuItura1 sector, and designing an industrial ~ U I U , ~ WIIILII ~ L . c > G l l l p l l ~ 3 1 J "11

reinvigorating the manufacturing sector as the hub of the economy. In line with this

thrust, the strategy should be the promotion of linkages between the various sectors of

the economy, so that the objective of meeting up with the needs of local markets will

be at the same time be at the core of objective of creating; iobs and wealth, and the

reduction of poverty; (b) government should pay

of old and provision of more infrastructure, espec

generation and distribution; human capital developmt;nr; wmuaru nmlirl ra~11it1t.s iulu

services; and water supply.

-- -

following are recommended: (a) urgent

ternatic modernization of the ,,I:*.. ..,l.:,1, ,I,,,, ,,,l..,,:, *,

-" more attention to the modernization

:ially but not limited, to electricity ----A- -A--J--A L--l&L c--:l:&:-- --.I

4.5 THE POSSIBLE SOLUTIONS

(1) Domestic demand can be provided for at rather affordable price levels that can help

stimulate growth,

(2) The more refineries that a . available the higher the number of qualitative

empIoyment opportunities the sector and relating industries can offer,

(3) Import of refmed oil shall be substituted reducing pressure on the currency,

(4) Increase in export volume of finished products with foreign exchange earnings and

eventual appreciation of the Naira

(5) There shall be spill-over effects on related and affiliated industries. Now, for the

refineries to fimction they shall require chemicals and other inputs. It is to be expected that

those companies to take charge of logistics and distribution of the refined product shall

locate near the refineries. Because of the eventual high demands of chemicals that may be

required, some chemical producing companies are likely to be attracted to invest and

produce locally. Such chemical companies are likely to produce for the refineries and

other chemical related industries.

15 SUMMARY

Developed economies and perpetually to the detriment of the developing countries. For

globalization to yield those desirable results for all, the disparities in our present system

must first of all be addressed. Should the discussion continue to neglect the weaknesses of

the present system in supposing that all economies are equal and must compete by the

same conditions and rule, in this case, globalization without any control and social

balances shall not be in the interest of developing countries. Some laws that protect local

production, market and capital movement must continue to be in place. Removing these

laws that regulate our capital flow with other economies prematurely because they are

trendy would be tantamount to economic suicide. I suppose that the fmt step to a

successful concept of globalization is the "countrylisation", which means the objective of

any such policy shall be to liberalize and deregulate the economy,

monopolies within a country, encouraging those wanting, to participate In local Investment

and production to do so without any discrimination. 1

substitution through local productions must be given

other vital infrastructure are to be upgraded, ernphasi

' . I t this development phase, import

priority, te1ec;ornmunication .. . and

s laid on education quality Ad

having the banking system re-organized. The second J J I ~ L ~ ~ G MIUUIU vc UIF IG~IUIIQILLLILIUII,

in the case of Nigeria, say for example "West Africa" or the whole of "Africa". These

countries should compete fieely with one another in an open market without any

hindrance or discrimination. I am afiaid, we would have to first of a11 learn to walk and

train before we can want to filly participate and expect to win at a competition to

determine the fastest athletes in the world at a game where the winner takes it all. It is

: only after such a phase of regionalization can we discuss globalization that can be

beneficial to all.

BIBLIOGRAPHY

Awoyomi, B., (1989), "Structural adjustment, risk aversion and currency in Nigeria," Rural Development in Nigeria, 3,8247. Buren, R., (1998), Apica south of the sahara, 27th (Ed.), (Europa Publication Ltd., New York).

Beveridge, W. A. and M. R. Kelly, (1 %O), 'TiscaI content of finance program supported by stand-by arrangement in the upper credit tranches, 1969-78," IMF StafPapers 27,205-249.

Connors, Thomas A., (1979), "The apparent effects of recent lPvlF stabilization programs," Inter~rafional Financial Discussion Papers, No. 1 3 5 (U. S. Board of Governors ofthe Federal Reserve System, International Finance Division, Washington, T), C.).

Donovan, Donald J., (1 98 I), 'Real responses associated with exchange rate action in selected upper credit tranche stabilization programs," IMF StafPapers 2 8, 698-727.

.- Donovan, Donald J., (1982), "Macroeconomic performance and adjustment undw Amdsupported

, . J < m s : the experience of the seventies," IMF SbafPapers 29, -203.

f?oT&tein, M. and P. Montriel, (1 986), "Evaluating fund stabil!a~nn aalpilms with multi-country data: some methodological pitfalls," I . ' d ' * , * ~ e 3 3 304-334.

Gylfason, T., (1 987), "Credit policy and economic activity in deMoeb@ caudtries with IMF stabilization programs," Studies in International Finance, No. 60 ( P r i n m University, Princeton).

Harrison, Fidel E., (1993), "Struchu?tl re-adjustment in Nigeria," American Jozanal of Economics and Sociology, 52, 193-207.

Henkel, R, (1976), Test of significance (Sage, Beverley Hills). Igbedioh, S. 0. and J. B. I. Aderiye, (1994), "Increase in food prices and food consumption pattern in some university students in Makurdi, Nigeria," Ecology of currency and money power, 3 1 , 2 19-226.

KaJisa, K., M. Mardia and D. Boughton, (1997), ''Transformation versus stagnation in the central bank of Nigeria : a comparison between Malaysia and Nigeria," Stagpaper No. 97-5 (East Lansing: Michigan State University).