Economic and Financial Review


Central Bank of Nigeria


External Sector, Nigeria, Second Quarter


The paper reviews the evolution of the Nigerian financial system and articulates some of its current problems and challenges for the future, especially in the light of the liberalised trade and exchange regime initiated under the Structural Adjustment Programme (SAP). The paper examines the evolution of the major institutions in the financial system in the context of the changing pattern of economic and regulatory environment in which they operate. It observes that the financial system has undergone substantial changes since 1960 in terms of number and variety of financial intermediaries, the depth and breadth of instruments, as well as the structure of capital and ownership. It identifies the major factors which have influenced the development of the financial system to include the attainment of political independence, the establishment of the Central Bank of Nigeria (CBN), the Nigerian Civil War, the oil boom and its eventual collapse, variations in government financial requirements and the changing views of the monetary authorities about the proper role of the banking system in the national economy.

Author Bio

The author is a Chief Research Officer in the Central Bank of Nigeria.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Oke, Ben Akin (1989). The Evolution of the Nigerian Financial System: Problems, Challenges and Prospects. CBN Economic and Financial Review. 27(2), 35-45.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.