CHAPTER ONE
1.0 INTRODUCTION
In the past year, the Nigeria economy has witness serious micro economy problem, characterized by show in the economic activities, how capacity utilization growing unemployment level debt burden, accelerated inflation intensify exchange rate separation as well as higher perfect receiving of interest rate persistently high and government deficit financing has been identified as the major factors in the observed micro economy problems.
When we talk of micro economy policies, this deals with monetary and physical policies, but this concerned mainly on monetary policies.
Therefore, monetary policies comprises of those policies desired to influence the behaviour of micro economy preferably the basic aim of the monetary policy are not the monetary aggregate themselves, but the aggregate in the real sector of the economy such as level of output, stabilization and the economy development.
The policies are designed in an items to charge the trend of some monetary variable in particular direction so as to infuse the desire behavioral change in the monetary policies the bank role is to conduct appropriate monetary policies that is consistence with the main economy objective of achieving real growth in gross domestic product, low inflation rate and satiable balance of payment position.

This irrespective of whether the direct of indirect approach is put in place to control money and crudity.
In this regard, the CBN clatter the amount of monetary supply that is consistent with the country micro economy objective and manipulated the monetary instrument at his disposal in order to achieve the state objectives.
Monetary policy is use to influence the macro economic objective because there is a believe that this occur in relationship between the trace variable at the monetary variables.
From the above explanation monetary policy could therefore be define as a delicate action taken by monetary authorities to change the domestic stock of money supply while fiscal policy variable remain constant.
Monetary policy influences the level of aggregate income and spending in the economy by influence money supply and the cost of borrowing money from the bank.

It could also be defined as a policy employing the central bank.

It could also be defined as an instrument for achieving the objective of a general economic policy or as a tool use by the monetary authority in other to achieve state economic objectives.

1.1 AIMS AND OBJECTIVES OF THE STUDY
The main objective of the study is to identify the source of monetary policy and its impact on Nigeria financial institution.
1. It is to examine different instrument of monetary policy and how the central bank uses the instrument in control the financial institution in Nigeria.
2. We can Endeavour to discuss the tacit and document of the policy in the Nigeria financial institution and the economic as a whole.
3. To appraise the performance money policy in Nigeria.
4. We end up the work by making adequate conclusion and recommendation on our findings on better ways by which this policy can be properly implemented.

1.2 SIGNIFICANT OF THE STUDY
Presently, the business environment economy as well as banking industry as experience massive benefits from the introduction of monetary policy at an appropriate level to ensure sustainable economy growth and maintain internal and external stability.
The following people will be benefited from the significant of monetary policy in an economy.
TO THE GOVERNMENT: it enables government to control monetary supply because it rate of growth has an effect on inflation.
i. It helps government for dictating course of economy.
ii. Its an action which aimed at achieving a certain set of economy objective also an attempt to control money
TO THE PUBLIC: it brings sustainable economy growth and maintains both internal and external stability growth.
i. It gives aggregate supply of money in calculation and census interest rate.
ii. Discouragement inflation with an increase in the along the bank policy guide line.
iii. It control the supply of money in circulation whereby too much money used to purchase few goods
TO THE INVESTORS: it an encouragement to the investors as the supply of money is been control core with increase in the volume of purchasing power.

1.3 RESEARCH METHODOLOGY
This research was carried out mainly on Central Bank of Nigeria plc.

the study were conducted basically through personal interview to acquire some needed information from the staff and management of the bank(CBN).the research student academic, personal experience central bank annual resorts and statement of account, various issue was also put to use from the research work.

All these will enable the bank and researchers to carry on this write up, if the need arises.

1.4 RESEACH QUESTION
Q.1.Does your bank grants loan and advances to their customers?
Q.2.What is the type of loan given out mostly?
Q.3.Who is responsible for giving out of loan?
Q.4.Do you think that granting of loan and advances to customers have any positive effect on the economy?
Q.5.Do you think increasing the rate of granting credit facilities help in improving the economy?
Q.6.Do your bank have credit control and management?
Q.7.How efficient is the credit management and control department?

1.5 STATEMENT OF THE PROBLEM
Despite the impact which monetary policy has played in the Nigeria financial institution, a lot of problems still control the monetary policy and their client and this study therefore carried out to investigate such problem like:
1. Expansion of more commercial bank and liquidation of most financial institution in Nigeria.
2. Monetary supply is not controlled in line with the demand in the real sector which heads to a situation of disequilibrium.
3. This is adverse effect on recent banking regulation of the liquidity and profitability objective of banking too low of money supply which leads to hinder of investment.
4. There is a large non-monetized sector which hinders the success of monetary policy in such countries – people mostly live in rural areas where barter is practiced.
5. Monetary policy is also not successful in such countries because bank money comprises a small proportion of the total money supply in the country.

1.6 SCOPE OF THE STUDY
This project work is confined to reaction period of year which would enable us to analyzed the data collected properly their project is also limited to use your case study for properly understand and problem solution of Nigeria monetary policy and the impact on Nigeria institution.