## Nigeria: Publication of Financial Sector Assessment Program Documentation––Technical Note on Strengthening Monetary and Liquidity Management

_IMF Staff Country Reports, October 24, 2013_

## Source details

**Canonical URL:** [Nigeria: Publication of Financial Sector Assessment Program Documentation––Technical Note on Strengthening Monetary and Liquidity Management](https://www.imf.org/en/publications/cr/issues/2016/12/31/nigeria-publication-of-financial-sector-assessment-program-documentationtechnical-note-on-41010)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/nigeria-publication-of-financial-sector-assessment-program-documentationtechnical-note-on-41010/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/nigeria-publication-of-financial-sector-assessment-program-documentationtechnical-note-on-41010/index.json)
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## Bibliographic details
- Published: October 24, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484320464.002

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### Summary and key findings
- This Technical Note focuses on strengthening of monetary and liquidity management in Nigeria.
- The Central Bank of Nigeria (CBN) has robust institutional framework in place to design and implement monetary policy.
- The CBN has also sufficient instruments for short-term liquidity management.
- The Monetary Policy Rate (MPR) corridor serves as a signaling device for the monetary policy stance.
- Although use of the overnight facilities is at the banks’ discretion, the CBN is able to use repo operations and outright transactions to manage day-to-day liquidity and guide short-term interest rates toward the MPR.

### Institutional framework and tools
- Institutional assessment: CBN possesses a robust institutional framework for monetary policy design and implementation.
- Liquidity instruments: Sufficient instruments exist for short-term liquidity management, including overnight facilities (bank-discretionary), repo operations, and outright transactions.
- Policy signaling: The Monetary Policy Rate (MPR) corridor is used as a signaling device for the monetary policy stance.

### Operational practices
- Overnight facilities: Use is at banks’ discretion.
- Open market operations: The CBN uses repo operations and outright transactions to manage day-to-day liquidity and guide short-term interest rates toward the MPR.

### Subjects and keywords covered
- Subjects: Asset and liability management, Banking, Currency markets, Financial markets, Foreign exchange, Foreign exchange sales, Liquidity, Liquidity forecasting, Liquidity management.
- Keywords: bank, CBN bill, CBN concern, CBN need, CBN transaction, CR, Currency markets, Foreign exchange sales, interest rate, intervention policy, ISCR, Liquidity, Liquidity forecasting, Liquidity management, market, market participant, rate.

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## Content in this bundle

- **Cr13315**
  - [Cr13315 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr13315.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/nigeria-publication-of-financial-sector-assessment-program-documentationtechnical-note-on-41010_