SOAS Research Online

Abstract

The purpose of this Thesis is to investigate whether there is real need for the selected anglophone African countries: Nigeria, Kenya, Tanzania and Zambia, to have a central bank in their countries and whether they should be autonomous institutions or arms of governments and whether in their role as the apex banking institutions these banks as well as the applicable laws have effectively promoted economic stability and growth or reverse. The thesis, in its ten chapters, surveys the historical development of money in Africa; developments in banking and central banking before and after the advent of colonialism sin these countries. It examined the legal structures of these banks; traced the sources of their organic and subsidiary laws and identified the objectives of legislation as seen by the nationalists of these countries before political independence. The thesis also sought to establish whether government representation on the boards; subordination of these banks to governments; political appointments of the governors and board members had impeded or enhanced economic development in the countries; and whether the lack of functional qualifications of board members and the use or lack of use of the implied powers of the boards had any impact on the performances of the banks. The service, developmental, monetary management and other functions of central banks and their performances in these functions were critically examined. The broad conclusion is that a monetary authority be it an association of commercial banks as in Hong Kong, is necessary and desirable in an economy but the pattern of organisation of central banking in advanced countries is not well adapted to the needs and circumstances of the countries surveyed. Many far-reaching reforms have been proposed which would match the level of development of these countries and ultimately conduce, it is hoped, to progressive economic growth. The Central Bank of Nigeria was the model.