Which institution became Nigeria’s central bank when it began operations in 1959?

The Central Bank of Nigeria became Nigeria’s central bank when it began operations in 1959.

The institution was established by the Central Bank of Nigeria Act of 1958 and commenced operations on 1 July 1959. Its creation gave Nigeria a national authority for currency issuance, monetary policy, and banking regulation as the country approached independence.

The Central Bank of Nigeria is headquartered in Abuja. It issues the naira, manages monetary policy, holds official foreign reserves, and promotes a sound financial system. The bank also works with deposit-taking institutions and other regulated financial entities.

It is distinct from commercial banks such as First Bank of Nigeria or United Bank for Africa. Those banks serve individual and corporate customers directly, whereas the Central Bank of Nigeria acts as the monetary authority and banker to the federal government.