Which institution became Nigeria’s central bank under the Central Bank of Nigeria Act 1958?

The Central Bank of Nigeria became Nigeria’s central bank under the Central Bank of Nigeria Act 1958.

The institution began operations on 1 July 1959, shortly before Nigeria became independent in October 1960. Its creation replaced the fragmented monetary arrangements that had existed under the West African Currency Board, which had issued currency for several British West African territories.

The Central Bank of Nigeria issues the naira, conducts monetary policy, regulates banks, and works to maintain monetary and financial stability. Its headquarters are in Abuja, Nigeria’s federal capital. The bank is often abbreviated CBN, although that abbreviation can also refer to unrelated organizations in other countries.

The CBN is distinct from Nigerian commercial banks such as First Bank of Nigeria and United Bank for Africa. Those institutions serve customers directly, while the CBN acts as the country’s monetary authority and banker to the government.