BACKGROUND TO THER STUDY
like case in many countries, commercial banking started in Nigeria long before the central bank was established where as the first commercial bank branch was established in Nigeria as far back as 1892, it was only in 1958 (66 years) after that the central bank of Nigeria was established by the bank of Nigeria act of 1958. it started full operations on 1st July 1959.
Prior to the establishment of the central bank of Nigeria, the role of a central bank was partially performed by the British government in 1912. this body was established to perform the primary role of issuing a West African currency in all the five countries that were British Colonies.
When British gained a higher control of Nigeria and some other West African Countries, the need for monetary control arose. In 1912, the colonial government set up a committee headed by Lord Emott from England, to study “ways and means of dealing two basic necessities. One was financing the needs of the export trade of the expatriate firms in West Africa (Nwankwo 1980:1).
Following the recommendation of lord Emott committee, the West African currency Board (WACB) was established in November 1912. It was charged with following three objectives:
a.To issue a West African currency.
b.To ensure a speed convertibility of his currency with the old sliver currency before it and
c.To provide a means whereby the colonial governments share in the profits of the currency issue.
As Nigeria moved towards independence, the nationalist began to agitate for the establishment of a central bank because the West African currency board had many short coming.
These short coming are as follows:
a.The WACB could not engage in management as a full fledge central bank. In could not make its own monetary policy, and even the currency it issued is directly tied to the British pound for instance, when it receive one British pound. It issues one West African pound.
b.The board failed to train Nigerians in the art managed by foreigners.
c.It failed to invest its reserves and profits in Nigeria since it was investing its reserves and profits in Nigeria since it was investing its reserve overseas.
In 1952 and 1957, the colonial government commissioned three separate groups to advise the government on what to do which are:
a.Fisher commissions of enquiry 1953
b.world bank (I.B.R.D) 1953 and lastly
c.J.B Loynes commission – 1957
It was finally, in 1st July, 1959 that the Central Bank of Nigeria opened its doors for business. It was on that day that the first time Nigeria currency was issued.
TABLE OF CONTENT
1.1BACKGROUND OF THE STUDY1
1.2STATEMENT OF THE PROBLEMS4
1.3THE NEED OF THE STUDY5
1.4SCOPE AND LIMITATION OF THE STUDY6
2.1THE DUTIES OF THE GOVERNOR8
2.2THE OBLIGATIONS OF THE GOVERNOR10
2.3THE CONTROL OF THE GOVERNOR12
3.1SUMMARY OF FINDINGS14
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