International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VI, June 2022 | ISSN 2454–6186
Dr. Onwudinjo Louis Ejike
Department of Agricultural Extension and Management, Enugu State Polytechnic, Iwollo, Enugu State Nigeria.
Abstract: This study critically appraised the Central Bank of Nigeria (CBN) (Amendment) Act of 2007 with a view of preferring suggestions for stronger central banking in Africa. The Act was critically reviewed and compared with major central banks in the World. Findings revealed amongst others that independence of the CBN is the greatest innovation brought about by the Act, but the independency has not influenced the development of the country’s economy. Secondly, the Act did not include other developmental functions of modern central banking, but retained monetary policy as a key role of the bank. Thirdly, the Act provides that the qualifications of the would-be governor or deputy governor of CBN shall be persons of only financial experience. On these, some recommendations were proffered which include amongst others that the independence of central banks in Africa should be enshrined in African Union Charter; that Central banking should be insulated from partisan politics; that central bank governors, and their deputies should be elected, and not appointed; that there is need for proper coordination between the fiscal and monetary authorities in an economy; that merit rather than any other considerations should be the basis of appointment of central bank governors; that economists should govern central banks in Africa; that central banking roles in Africa should go beyond monetary stability to include other developmental functions like job creation; that Central banks in Africa should bring down both lending and inflation rates to single digits and also maintain a competitive exchange rate system .
I. INTRODUCTION
The central bank is usually a government-owned bank that helps to control and supervise the entire monetary and financial system of a country. The central banks are known by distinct names in different countries of the world. For instance, “there is the Federal Reserve System for the United States of America, the Bank of England, the European Central Bank, the Bank of Japan, the Peoples Bank of China, the Australian Government Bank, the Reserve Bank of India, the Central Bank of Nigeria amongst others. The Risk Bank of Sweden is the oldest central bank in the world, and came into existence in 1668 when a private-owned bank was converted into a state bank. But, the Bank of England established in 1694 was considered as an ideal apex bank at inception, and by the middle of the 19th century, it was performing practically all the characteristics functions of modern central bank” (Cauvery et al, 2013).