Central Bank of Nigeria — Key Facts
| Full Name | Central Bank of Nigeria (CBN) |
| Founded | 1958 |
| Headquarters | Abuja, Nigeria |
| Currency Issued | Nigerian Naira (NGN) |
| Owner | Federal Government of Nigeria |
| Governor | Olayemi Cardoso (as of 2023) |
The Central Bank of Nigeria (CBN) is the apex monetary institution of Africa’s largest economy. As the sole issuer of the Nigerian naira, the CBN is responsible for monetary policy, financial system stability, and the management of Nigeria’s foreign exchange reserves. The naira (NGN) has experienced significant volatility over the years, reflecting both domestic economic pressures and global commodity price swings, given Nigeria’s heavy dependence on oil exports.
Who Owns the Central Bank of Nigeria?
The Central Bank of Nigeria is owned by the Federal Government of Nigeria. Unlike commercial banks, the CBN is not a privately owned entity — it operates as a government institution under the CBN Act of 2007. The President of Nigeria appoints the CBN Governor, subject to Senate confirmation, for a five-year term. The current CBN Governor is Olayemi Cardoso, appointed in 2023 by President Bola Tinubu.
History and Background
The CBN was established in 1958, two years before Nigerian independence, and began full operations in July 1959. It was created to provide a stable currency, manage monetary policy, and regulate the banking sector. Over the decades, the CBN has navigated multiple economic crises, currency devaluations, and structural adjustments. The naira was introduced in 1973, replacing the Nigerian pound at a rate of 2 naira to 1 pound.
The Nigerian Naira — Recent Performance
The naira has faced considerable depreciation pressure, particularly since Nigeria’s oil revenues declined and foreign exchange controls created a gap between official and parallel market rates. In 2023, Nigeria unified its exchange rate system, allowing the naira to float more freely, which led to a sharp devaluation but also reduced black-market premiums. The CBN continues to manage monetary policy aimed at controlling inflation and supporting long-term economic growth.
CBN’s Key Functions
The Central Bank of Nigeria issues the naira, sets the monetary policy rate (MPR), manages foreign exchange reserves, regulates and supervises banks and financial institutions, and acts as the banker to the federal government. The CBN also implements policies to promote financial inclusion across Nigeria’s large unbanked population.
