A Concise Legal Assessment of the Independence of the Central Bank in Nigeria


The independence of central bank in any given state is a canonical example of financial and economic governance reform, proposed to improve monetary policy and standardize state economy, through inflation control strategy, exchange rate control, statistical dispersion, commercial banks deposits insurance and capitalization control amongst several other administrative and governance initiatives. The central bank of Nigeria has undoubtedly made significant impact on the economic development of the Nigeria state and the robust development of the Nigerian banking industry; although not without some major constraints against the performance of its statutory functions. The enabling laws of the bank, rather than enhance its autonomy and independence, has merely succeeded in rubbing off its supposed independence, thereby changing its operational status. This paper presents a concise assessment of the independence of the Nigerian Central Bank. It further seeks to ascertain the degree of its independence, with reference to the global practice, drawing a comparison of the Nigerian Central Bank and the Bundesbank of Germany. It argues that the CBN does not have a de facto independence, and thereafter concludes that there would be a regularize monetary regime and financial stability in Nigeria if the Central Bank of Nigeria becomes truly independent in the practical sense of the word.