International Development

Nigeria is an active member of a number of multilateral and regional organisations such as the IMF, World Bank, NEPAD, ECOWAS, e.t.c. It also has Bilateral Agreements and Memorandum Of Understanding (MoU) with some countries on economic and other issues. The Central Bank of Nigeria is an important agency of government in the conduct of economic policies and economic diplomacy between Nigeria and other countries. This page seeks to explain economic developments in the international scene that could impact on the Nigerian economy and monetary policy formulation.

The International Monetary Fund
The International Monetary Fund, was established in December, 1945 by the United States of America, and a group of forty four (44) governments based on a framework of economic cooperation. The IMF focuses mainly on Nigeria’s macroeconomic policies. Read more on the International Monetary Fund (IMF).

The World Bank
The World Bank is made up of one hundred and eighty-four (184) member countries of which Nigeria is a member. The Bank and the International Monetary Fund (IMF) introduced Poverty Reduction Strategy Paper (PRSP) as a condition for lending to developing countries, in order to ensure that the living standards of the poor are lifted by public expenditure. Read more on the World Bank.

The Association of African Central Banks
The Association of African Central Banks was established following the recommendations of the first Meeting of Governors of African Central Banks which was held in Addis Ababa from 15 to 22 February 1965. The objective of the Association is to promote co-operation in the monetary, banking and financial sphere in the African region and to assist in the formulation of guidelines along which future agreements between African countries can proceed in these areas. Read more on the Association of African Central Banks (AACB).

African Development Bank (ADB) Group
African Development Bank (ADB) Group is a regional multilateral development bank established in 1964, but commenced operations in 1967. It is owned by 77 nations from Africa, North and South America, Europe and Asia. The objectives of the ADB Group are to mobilize resources for economic and social development of African countries. The Group comprises the African Development Bank, African Development Fund (ADF) and the Nigerian Trust Fund (NTF). Read more on the African Development Bank (ADB) Group.

The Economic Community of West African States (ECOWAS)
The Economic Community of West African States (ECOWAS) was established on May 28, 1975 and is made up of Sixteen (16) countries. The major objective of ECOWAS is to establish a common market and create a monetary union. Its mission is to promote economic integration in “all fields of economic activity, particularly industry, transport, telecommunications, energy, agriculture, natural resources, commerce, monetary and financial questions, social and cultural matters. Read more on ECOWAS.

  • The West African Monetary Zone (WAMZ)
    The West African Monetary Zone (WAMZ) was proposed by Nigeria and Ghana, on December 15, 2000, as a second monetary zone in the ECOWAS to fast track the monetary integration of Nigeria, Ghana, the Gambia, Sierra Leone, Liberia and Guinea (a French speaking country). The major objective is to facilitate rapidly the achievement of a WAMZ monetary union with a common central bank and a single currency for eventual merger with the Francophone countries who already have, in existence a West African Monetary Union known as UEMOA. Read more on WAMZ.
  • The West African Monetary Institute (WAMI)
    The West African Monetary Institute (WAMI) is saddled with the responsibility of facilitating the realization of the single monetary union of the WAMZ. Read more on WAMI.
  • The West African Monetary Agency (WAMA)
    The West African Monetary Agency (WAMA) is an autonomous specialized agency of the Economic Community of West African States (ECOWAS). Read more on WAMA.
  • The West African Institute for Financial & Economic Management (WAIFEM)
    The West African Institute for Financial and Economic Management (WAIFEM) was established on July 22, 1996 by the constituent central banks of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone became operational in January 1997. The principal objective of the Institute is to build capacity for macroeconomic and financial management in the countries of its member central banks. Read more on WAIFEM.

The New Economic Partnership for African Development (NEPAD)
The New Economic Partnership for African Development (NEPAD) is a continental idea conceived by Nigeria and the Republic of South Africa, and adopted by African leaders at the African Union summit in Lusaka, Zambia, in July 2000.
The goal of NEPAD is to eradicate poverty in Africa and to place African countries both individually and collectively on a path to sustainable growth and development to halt the marginalization of Africa in the globalization process.

    NEPAD's primary objectives are:
  • To eradicate poverty,
  • To place African countries, both individually and collectively, on a path of sustainable growth and development,
  • To halt the marginalisation of Africa in the globalisation process and enhance its full and beneficial integration into the global economy,
  • To accelerate the empowerment of women.

    • One of the goals identified by NEPAD is the implementation of prudent financial and economic management policies, such as stringent public financial management and tight monetary policies as vital for the achievement of sustainable growth and development in Africa. Some of the policies of the Central Bank of Nigeria touch directly on poverty eradication and so bear on NEPAD’s goal of acceleration of the eradication of poverty and inequality on the continent. Read more on NEPAD.

    Bilateral Economic Cooperation
    The Monetary Policy Department inter-faces with the central banks of other countries such as Bank of Ghana, Reserve Bank of South Africa, Bank of England, Reserve Bank of New York and the Central Bank of Luxembourg, amongst others to share and exchange experiences on Monetary Policy management with emphasis on exchange rate and liquidity management. Read more on bilateral economic cooperation.

    Visit the AFDB website - https://www.afdb.org/
    Visit the AACB website - https://www.aacb.org
    Visit the World Bank Website - https://www.worldbank.org
    Visit the WAIFEM website - https://www.waifem.org/
    Visit the ECOWAS website - https://www.ecowas.int/
    Visit the WAMI website - https://www.wami-imao.org/
    Visit the WAMA website - https://www.wama-amao.org/
    Visit the NEPAD website - https://www.nepad.org/
    Visit the IMF website - https://www.imf.org