There are many instrument traded in the money market of Nigeria. Money market instrument are those instrument used in the market to mobilize fund in the market from the surplus sector of the economy to the deficit sector with a giving interest rate (Noko, 2011). Infact, government trade mainly on three instruments which include; Treasury bills commercial banks were the first types of banks to appear on the Nigeria financial scene. 

African Banking Corporation, an expatriate bank from South Africa was first commercial bank to open office in Nigeria. Its operational problems necessitated the closure and take over by banks of British West Africa, now first bank, which was established in 1894. the bank and other financial institution degree (BOFID ) of 1991 defined commercial banks as any bank in Nigeria whose business includes acceptance of deposits, which can be drawn by cheque. The function in mobilization of funds, financial intermediation, credit extension, safe – keeping of depositors and customers valuable properties, agent of economic development etc.
            However, merchant bank which provides wholesale banking to the public and other bank came into Nigeria with establishment of Philip Hill Nigeria limited. As wholesale banks they are mainly concentrated in large cities where economic activities are in high scale. Other functions of the bank includes; debt factoring, equipment leasing, investment advisory & brokerage acceptance and negotiable bill of exchange, portfolio management etc. Development banks on the other hand were set up by government to facilitate the provision of funds for development purpose to the general public. Thus, they accelerate economic growth & to facilitate trade between parties that do not which to expose each other credit risk. It is a certificate to the bank of the exporter by the bank of importers stating that the bill on the note will be paid at maturity. Promissory note which is one of the earliest type of bill. It is a written promise on the part of businessman to pay another a certain sum of money at an agreed future date. However, niter bank term market is a market instrument exclusively for commercial banks which borrow and lend funds for a period of over fourteen days and up to ninety days without any collateral.
            Stabilization securities are special securities which the CBN sells compulsory to banks at interest rate and such conditions that it deems fit for mopping up excess liquidity off banks. It is an instrument reserved for use by the central bank. It was authorized by law when first used in 1976 and il later phased out; reintroduced in 1993 and further issue stopped in 1998. All these instrument used in the money market, although a good number of instrument were not mentioned here.
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