You’ve probably heard about the Central Bank of Nigeria and wondered about its leaders over the years. As the apex bank responsible for implementing monetary policies, regulating banks, managing exchange rates, and more, the CBN plays a pivotal role in Nigeria’s economy. Its governors shape the country’s financial landscape. But who exactly has held the position of CBN governor since Nigeria gained independence? You’re about to find out. In this article, we’ll walk through a complete list of Central Bank governors in Nigeria from 1958 up until the present day.
History of the Central Bank of Nigeria
The Central Bank of Nigeria (CBN) is Nigeria’s central bank and apex monetary authority, created by the CBN Act of 1958 and operational since July 1, 1959. The Central Bank of Nigeria (CBN) was established in 1958 to regulate Nigeria’s banking industry. The CBN replaced the West African Currency Board, which had issued currency notes in Nigeria since 1912.
On July 1, 1959, the Central Bank of Nigeria issued Nigerian currency notes and coins, while the West African Currency Board notes and coins were withdrawn. It wasn’t until July 1, 1962, that the country’s legal tender status changed to reflect its new status. Roy Pentelow Fenton was appointed the first and only expatriate Governor of Nigeria’s Central Bank. He served from July 24, 1958, to July 24, 1963.
In the 1980s and 1990s, the CBN focused on stabilizing the naira and controlling inflation. Governors like Abdulkadir Ahmed and Paul Ogum took measures like adjusting interest rates and exchange rates. By the 2000s, CBN governors began banking reforms to strengthen Nigeria’s banking sector. Governor Charles Soludo consolidated Nigeria’s 89 banks into 25 larger banks. Governor Sanusi Lamido Sanusi cracked down on non-performing loans and corporate governance issues.
The CBN Act of 2007 made it an independent body, ensuring that it carries out its functions without interference from the government.
Former CBN Governor Godwin Emefiele has focused the CBN on promoting growth in Nigeria’s real economy. The CBN has created programs to increase lending to businesses, especially in agriculture. The CBN has also restricted certain imports to boost local manufacturing and introduced the naira-settled OTC FX Futures market to improve the nation’s currency management.
Through various governors and reforms, the CBN has evolved to support Nigeria’s changing economic needs. It continues to work towards a stable financial system and strong real economy in Nigeria.
Central Bank of Nigeria (CBN) Statutory Duties and Powers
These are some of CBN statutory duties and powers:
Issuing Legal Tender
The CBN has the sole right to issue the Nigerian currency, the Naira. It regulates the volume of money in circulation to promote economic growth and stability.
Maintaining External Reserves
The CBN maintains the country’s foreign exchange reserves and allocates it to authorized dealers and end users. It also fixes the value of the Naira against other currencies.
Promoting Monetary Stability
The CBN uses monetary policy tools like interest rates to control inflation and ensure stable prices. It aims to achieve a low and stable inflation rate to spur economic growth.
Supervising Banks
The CBN regulates and supervises all banks and financial institutions in Nigeria. It sets guidelines for their operations and penalizes erring institutions to ensure a sound financial system.
Advising the Government
The CBN advises the federal government on banking and financial matters. It provides data and policy recommendations to support government economic planning and decision making.
Financial Inclusion
The CBN promotes access to financial services for underserved segments of the population. It drives initiatives to bring more people into the formal financial system.
Economic Reporting
The CBN publishes reports on key economic indicators like inflation, interest and exchange rates. It provides data and statistics for the government, businesses and the public.
Promoting Development
The CBN finances and supports programs and projects that drive economic growth and development. It provides funding for agriculture, infrastructure, education, health, and other sectors.
The CBN plays a crucial role in developing a stable financial system in Nigeria that supports the country’s economic growth. It has made progress but still faces significant challenges to fulfill its mandate. With continued reforms and independence, the CBN is poised to enhance Nigeria’s financial sector.
Central Bank of Nigeria Structure
The Central Bank of Nigeria (CBN) has a very structured organization with clear roles and responsibilities. At the top is the Board of Directors, comprised of a Governor, four Deputy Governors and five non-executive members.
The Governor, who is the chairman of the board, is responsible for the day-to-day administration and operations of the CBN. The Deputy Governors assist the Governor in overseeing core central banking functions like banking supervision, financial system stability and operations.
Departments and Directorates
There are Twenty Seven Departments in the Central Bank of Nigeria grouped in order of related performance and job descriptions. Some of the major departments include:
- Banking Supervision: Ensures banks and other financial institutions comply with rules and regulations.
- Monetary Policy: Implements strategies to achieve price stability and promotes economic growth.
- Trade and Exchange: Manages Nigeria’s foreign exchange reserves and the Naira exchange rate.
- Risk Management: Identifies and manages risks within the CBN and financial system.
- Consumer Protection: Educates consumers and addresses issues around bank charges, lending, etc.
The CBN also has several branches across all 36 states to carry out its operations nationwide. With this well-structured organization manned by qualified professionals, the CBN is poised to achieve its objectives of ensuring monetary and price stability that fosters economic development.
Where is the Central Bank of Nigeria Situated?
You’ll find the Central Bank of Nigeria headquartered in Abuja, the capital city of Nigeria. The address is; Plot 33, Abubakar Tafawa Balewa Way Central Business District, Cadastral Zone, Abuja, Federal Capital Territory, Nigeria.
On January 18, 2024, FAAN had announced the relocation of its headquarters from Abuja to Lagos. CBN also has branches across all 36 states in Nigeria. These branch offices mainly carry out the bank’s operations like banking supervision, currency management and development finance activities across Nigeria. The branch network ensures the CBN efficiently discharges its mandate of ensuring price and financial stability at a national level.
So in summary, while the CBN headquarters remains in Abuja for now, its presence across Nigeria through physical branch offices enhances its effectiveness in implementing policies and overseeing banking operations nationwide. The headquarters building in Abuja stands as an iconic symbol of the central bank’s prestige and significance in Nigeria’s economy.
List of Central Bank Governors in Nigeria From 1958 Till Date
The Central Bank of Nigeria (CBN) is Nigeria’s apex bank that controls and regulates the banking industry. It was established in 1958 to replace the West African Currency Board (WACB). The CBN is responsible for developing monetary policies, controlling inflation, and stabilizing exchange rates to ensure a healthy economy.
The CBN has been led by 14 governors since its inception. Each governor shaped the policies and economy during their tenure. Some pursued progressive reforms while others faced major economic challenges.
| GOVERNOR | PREVIOUS POSITION | TERM START | TERM END |
|---|---|---|---|
| Roy Pentelow Fenton | 24 July 1958 | 24 July 1963 | |
| Aliyu Mai-Bornu | Deputy Governor, CBN | 25 July 1963 | 22 June 1967 |
| Clement Nyong Isong | Advisor International Monetary Fund | 15 August 1967 | 22 September 1975 |
| Adamu Ciroma | 24 September 1975 | 28 June 1977 | |
| Ola Vincent | Deputy Governor, CBN | 28 June 1977 | 28 June 1982 |
| Abdulkadir Ahmed | Deputy Governor, CBN | 28 June 1982 | 30 September 1993 |
| Paul Agbai Ogwuma | CEO, Union Bank of Nigeria | 1 October 1993 | 29 May 1999 |
| Joseph Oladele Sanusi | CEO First Bank of Nigeria | 29 May 1999 | 29 May 2004 |
| Charles Chukwuma Soludo | Chief Executive, National Planning Commission | 29 May 2004 | 29 May 2009 |
| Sanusi Lamido Aminu Sanusi | CEO, First Bank of Nigeria | 3 June 2009 | 20 February 2014 |
| Sarah Alade (Acting) | Deputy Governor, Central Bank of Nigeria | 20 February 2014 | 3 June 2014 |
| Godwin Emefiele | Chief Executive Officer, Zenith Bank | 3 June 2014 | 9 June 2023 |
| Folashodun Adebisi Shonubi (Acting) | Deputy Governor, Central Bank of Nigeria | 9 June 2023 | 15 September 2023 |
| Olayemi Cardoso | Chairman CitiBank Nigeria and Commissioner for Economic Planning and Budget of Lagos State | 15 September 2023 | Incumbent |
The current CBN Governor Olayemi Cardoso continued the progress of establishing the CBN as the regulator of Nigeria’s economy. He has worked to curb inflation, stabilize the exchange rate, increase economic growth and diversify the economy beyond oil exports.
Frequently Asked Questions
As with any position of power, the role of CBN Governor often brings up many questions. Here are some of the most frequently asked ones:
How is the CBN Governor selected?
The CBN Governor is appointed by the President of Nigeria, based on recommendations from the Finance Minister and Senate approval. The appointment is for a term of five years, which can be renewed.
What are the qualifications to become CBN Governor?
The Governor must be a citizen of Nigeria, have extensive experience in banking, finance or business administration. Strong leadership abilities, integrity and sound judgment are also required.
What major roles does the CBN play in Nigeria’s economy?
The CBN plays several major roles in Nigeria’s economy:
- Issues legal tender, regulates money supply and promotes price stability
- Acts as banker and financial adviser to the government
- Promotes a sound financial system and regulates financial institutions
- Acts as lender of last resort to banks
- Manages foreign exchange reserves and the value of the Naira
Does the CBN Governor have any restrictions?
Yes, the Governor cannot hold any other paid employment during their time in office. They are also prohibited from having any interest in any bank or financial institution. This avoids any conflict of interest in their role regulating Nigeria’s banking system.
What is the salary of a CBN Governor?
The CBN Governor receives a very competitive salary and benefits. According to reports, the current salary is over ₦80 million annually, not including other substantial allowances and benefits.
Can a CBN Governor be removed from office?
Yes, the President has the power to remove the Governor from office. This can happen for reasons like inability to perform their duties, misconduct, or if the Governor is declared bankrupt. The removal process requires approval from two-thirds of the Nigerian Senate.
How independent is the CBN from political influence?
The CBN is designed to be independent from political influence in its operations. However, the President still appoints the Governor and board members, who shape the bank’s policies.
Conclusion
So there you have it, a rundown of all the governors who have led Nigeria’s central bank over the years, from independence up to the present day. It’s been quite a journey spanning more than six decades, with leaders who guided the bank through some extremely challenging times. Whether they faced global financial crises, unstable oil prices, or local economic turbulence, these men shaped Nigeria’s monetary policy and financial sector in ways that still reverberate today.
As the bank continues to evolve in the 21st century, it will be fascinating to see who steps up next to take the helm and put their own stamp on this critical institution. For now, we can look back with intrigue on the diverse leaders who have filled those governor shoes so far. What new chapters will the next ones write in the ongoing story of the Central Bank of Nigeria? Only time will tell.