Central bank of Nigerian started operation

Analyze the question: The question asks for the year the Central Bank of Nigeria (CBN) began operations.

Concept: Before the CBN, Nigeria's currency and banking were managed by the West African Currency Board (WACB). The Central Bank of Nigeria Act was passed in 1958, which established the bank legally. However, passing a law and actually starting work are different things.

Step-by-step solution:

1. The CBN Act was passed by the Nigerian parliament in 1958, creating the bank legally.
2. The bank formally opened and began operations on 1 July 1959.
3. The first Governor was Mr. Roy Pearce Fenton, an Englishman.
4. In 1960, the bank began issuing Nigerian currency notes and coins. The Nigerian pound was introduced in 1958 and the notes were issued from 1959 (the first notes came in 1959 and coins in 1959/1960).
5. In 1973, the naira replaced the pound. That is a separate event, not the start of the CBN.

The question asks when it started operation, so the answer is 1959.

Correct answer: B. 1959

Exam tip: Remember the sequence 58-59-73:

• 1958: the CBN Act was passed
• 1959: the CBN started operation
• 1973: the naira was introduced (decimal currency)

Watch the wording. "Established" or "Act passed" points to 1958, while "started operation" points to 1959.