CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Countries all over the world have organized agencies established in order to monitor and ensure stability in the economy. These agencies are provided with the necessary facilities with which to achieve this laudable objective. Their ability to achieve their desired goal depends on the level of development in that country. Record shows that the so called developed countries of the world have been able to achieve about 70% of the Macro economic objectives of full employment, price stability, favourable balance of payment among others. This is because their agencies have succeeded in implementing their economic policy measures efficiently and effectively. The developing nations where Nigeria belongs are still below 50% in the actualization of the aforementioned objectives while the underdeveloped countries are still winking in the dark.
In Nigeria, the Central Bank of Nigeria, State Board of Internal Revenue, Nigeria customs Service and others are the agencies instituted to implement the policy measures for the attainment of macroeconomic objectives. These agencies have not totally succeeded in implementing the policy measures in the interest of the populace. This is attributable to the country’s state of development which affects the functioning of these agencies.
The Central Bank of Nigeria is at the forefront of the policy formulation. She assesses the economy with a view of identifying the economic problems. These problems are communicated to the Minister of Finance who in collaboration with the Apex bank determines how to resolve the identified problem. The fiscal policies are administered by the ministry of finance and when formulated are not just implemented but subjected to the approval of the National Assembly before actual implementation. The monetary policies on the other hand are formulated and implemented by the Central Bank of Nigeria.
According to George (1994: P. 222), the economy of any country regardless of its structure is regulated by certain policies developed by the government. Economic and social policies are some of them but the economic policies mentioned above are more fundamental and crucial because it serves as a foundation for the success of the other policies of the government. These policies require a functional agency for its success in an economy.
These agencies are as old as the policy measures themselves. Mule (1970: P. 369) observed that “Fiscal policy as an effective tool for economic reconstruction and development has been in existence before the second world war” after the war, many economists advocated theories in order to increase economic prosperity because of the adverse effect of the war. Early in the twentieth Century, Lord Maynard keyness put forward an articulated and constructive solution to solving economic problems.
Therefore, it is clear from the fore going that these stabilization measures are monitored and directed by the established agencies that are as old as the policy measures themselves. This implied that these agencies have been in charge of the upswings and downswings the nation has been experiencing before now. Hence, it is the focus of this work to assess the efficiency and effectiveness of these agencies in implementing the policy measures with a view to identifying those factors that contributed to their success or failure in the Nigerian economy as the case may be.
1.2 STATEMENT OF THE PROBLEM
Because the Nigerian economy is bestowed with acute episode of inflation, unemployment and price instability, life have been difficult and unbearable for the citizen. As a result, many have been relocating to the shores of these developed counties where they will be well catered for. Also, investors who prefer a “safe haven” for their investment have been committing their excess fund in these countries for investment purposes.
All these are as a result of the ability of these agencies to create a conducive atmosphere for the Nigerian populace by manipulating the appropriate policy instrument. A number of problems are encountered by these agencies in implementing the policy measure.
Some of which are: