Before the establishment of central bank of Nigeria, the West Africa currency Board (WACB) which was founded in 1912 had been in existence and has been issuing out legal tender currency. It was however linked automatically to the British system and could not engage in monetary management neither where Nigeria trained to the act of monetary management. In other to eliminate this deficiency and thereby promote the growth of money and capital market, to central bank of Nigeria was established in 1958 and it commence business on 1^st July 1959 with an initial capital outlay of #3 million which was subscribed to and wholly paid up for by the federal government of Nigeria.