A Critical Evaluation of the Central Bank of Nigeria?s Interventions in a Depressed Economy

• Author(s): Thomas Effiok Raymond
• Paper ID: 1712439
• Page: 2298-2305
• Published Date: 01-12-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 5 November-2025

Abstract

This research explores how the Central Bank of Nigeria (CBN) deals with economic depression and the impacts of its interventions on monetary policy, credit support, exchange rate and regulation interventions. The motivation for this research stems from the recurrent depressed periods of Nigeria?s economy, with Nigeria?s economy currently growing, but its GDP growth rate remains low while unemployment remains high and there are liquidity problems with inflation. The research employs a conceptual and analytical review approach and brings together recent literature on policy analysis and institutional policy documents published from the year 2015 to the year 2025. The findings indicate the CBN interventions have stabilized the banking industry, increased liquidity, and provided intermediated credit to important sectors, thus giving CBN a measure of relief on a short-term basis. CBN?s intervention programs, like the Anchor Borrowers' and SMEs sponsored credit programs have been positive. CBN also promotes and encourages positive monetary policy activities like the CBN prescribes to the banks in the economy and the CBN based its policies on a positive rate of growth. The changes in policy on monetary policies routing the direction of the economy and the changes of the (Cash Reserve Ratio) which the CBN reserves to interventions to promote a positive outcome. The CBN positive outcomes in the economy promote interventions to a lesser extent with the liquidity complexities of the economy in place. CBN has positive outcomes to a lesser extent with the complexities of the liquidity in the economy. The CBN has positive outcomes with interventions in CBN has to a lesser extent the economic complexities. CBN has the positive outcomes with monetary interventions. The exchange of monetary CBN outcome policies have positive outcome on monetary policies economic outcomes. The findings indicate that while CBN interventions are pivotal in stabilizing the economy in the short run, recovery from the current the economic crisis hinges on restructuring command economics, and on CBN reforms that strengthen synergy and coordination with fiscal authorities. Other recommendations include improving monetary policy transmission and coordination, increasing credit market access, regulatory and policy transparency, and supervisory frameworks. The CBN?s role in Nigeria?s economic recovery from CBN interventions are vital in alleviating the depressions, and losing the economic endurance capacity due to further systemic reforms need to intervene and curb economic depression.

Keywords

Economy, Depressed Economy, Monetary Policies, Liquidity and Economy Recovery

Citations

IRE Journals:
Thomas Effiok Raymond "A Critical Evaluation of the Central Bank of Nigeria?s Interventions in a Depressed Economy" Iconic Research And Engineering Journals Volume 9 Issue 5 2025 Page 2298-2305 https://doi.org/10.64388/IREV9I5-1712439

IEEE:
Thomas Effiok Raymond "A Critical Evaluation of the Central Bank of Nigeria?s Interventions in a Depressed Economy" Iconic Research And Engineering Journals, 9(5) https://doi.org/10.64388/IREV9I5-1712439