Central Bank, Capital Market, Development, Corporate financing.


Central banks, especially in Third World countries, play a major role in the growth and development process. Although the structures, functions and powers of central bank vary from country to country, depending on the economic, political, social and other environmental realities prevailing in society, the primary role of any central bank is the promotion of monetary stability and a sound financial system. In performing this role, a central bank necessarily undertakes some functions which include the issue of legal tender currency, maintenance of the value of the national currency, enhancement of funds mobilization, facilitation of competitive efficiency among banks and other financial institutions within the system and promotion of active money and capital, the Central Bank of Nigeria has not been an exception. This paper examines the Bank's role in capital market development in Nigeria. In what follows, a background to the establishment of the CBN and the Nigerian Capital Market is given. The experience of other countries about measures to activate the capital market is examined, while the role of the CBN in capital market development is discussed. A brief review of the Nigerian Capital Market vis-a-vis other emerging markets is given. The paper ends with a contemplation on future challenges and some concluding remarks.

Author Bio

The author is the Governor of Central Bank of Nigeria.

Publication Title

CBN Bullion






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