I think for me, that was a low point. The credibility for this institution was eroded. For an institution this important to be subjected to that is b… - Sarah Alade

Nigeria’s economic recession can be traced to a number of global and domestic factors. They include slump in commodity prices, general slowdown in economic activity in developing countries, over dependency on oil, lack of diversification of the revenue base, consumption-led growth, militancy in the Niger-Delta region, insurgency in the North East and unutilized excess liquidity in the banking system.

In recent years, academics and policymakers have shown increasing interest in the independence of central banks with respect to the formulation of monetary policy. In the European Union, this interest was realized in the Maastricht Treaty, which gave the European Central Bank complete autonomy in conducting the monetary policy without political intrusion. Most empirical studies support central banks’ autonomy in the conduct of day-to-day monetary policy operations devoid of political pressure. This enables them to deliver better inflation outcomes, without compromising economic growth. The CBN Act of 2007 bestows independency on the Bank.

Financial illiteracy results in poor financial inclusion. Non-financial inclusion becomes a threat to the survival of the Nigerian financial sector as most adults and young Nigerians are financially excluded from the formal financial sector. A high percentage of adult Nigerians don’t have bank accounts, and this in the long run becomes a big headache for central banking.