Central Bank of Nigeria- Functions, Contact, History & Financial Policy.

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 Central Bank of Nigeria (CBN) was established through the CBN Act of 2007 which charged the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government, as well as the responsibility of administering the Banks and Other Financial Institutions (BOFI) Act (1991) as amended – with the aim of ensuring alignment with global standards of banking practice and financial stability through its surveillance activities, as well as the promotion of an efficient payment system.

Central Bank of Nigeria

Central Bank Of Nigeria Vision

The Central Bank has a vision to maintain Price and Financial System Stability and a mission to drive economic development through proper management of the financial sector as well as implementation of monetary and exchange rate policy. Its objectives include:

  • To act as Banker to the Federal Government, as well as provide sound economic and financial advice to facilitate monetary and price stability
  • Issue legal tender currency in Nigeria and maintain external reserves to safeguard its international value.

In addition to the above core functions, CBN has over the years performed some major developmental functions, focused on all the key sectors of the Nigerian economy (financial, agricultural and industrial sectors). Overall, these mandates are carried out by the Bank through its various departments.

Central Bank of Nigeria Monetary Policy

The legal backing for monetary policy by the Bank derives from the various statutes of the bank such as the CBN Act of 1958 as amended in CBN Decree No. 24 of 1991, CBN Decree Amendments 1993,No. 3 of 1997,No. 4 of 1997,No. 37 of 1998,No. 38 of 1998,1999 and CBN Act of 2007. Section 12 Sub-sections (1) to (5), CBN Act of 2007 (Ammended)

In order to facilitate the attainment of price stability and to support the economic policy of the Federal Government, there shall be a Committee of the Bank known as the Monetary Policy Committee (in this Act referred to as “the MPC”)

The MPC shall consist of –

  • the Governor of the Bank who shall be the Chairman
  • the four Deputy Governors of the Bank
  • two members of the Board of Directors of the Bank
  • three members appointed by the President; and
  • two members appointed by the Governor

The MPC shall have responsibility within the Bank for formulating monetary and credit policy

The appointment of a member of the MPC pursuant to sub-section 2 (d) and (e) of this section, the remuneration , filling of temporary vacancies,

qualification, tenure of office and disqualification shall be subject to the same terms as are stipulated for a Director under sections 10 and 11 of this Act.

The provisions of the Second Schedule to this Act shall have effect with respect to the proceedings of the MPC

Functions Of The Nigeria Central Bank { CBN }

The mandate of the Central Bank of Nigeria (CBN) is derived from the 1958 Act of Parliament, as amended in 19911993,1997,1998,1999 and 2007.

The CBN Act of 2007 of the Federal Republic of Nigeria charges the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government.

The objects of the CBN are as follows:

  1. ensure monetary and price stability;
  2. issue legal tender currency in Nigeria;
  3. maintain external reserves to safeguard the international value of the legal tender currency;
  4. promote a sound financial system in Nigeria; and
  5. act as Banker and provide economic and financial advice to the Federal Government.

Consequently, the Bank is charged with the responsibility of administering the Banks and Other Financial Institutions (BOFI) Act (1991) as amended, with the sole aim of ensuring high standards of banking practice and financial stability through its surveillance activities, as well as the promotion of an efficient payment system.

In addition to its core functions, CBN has over the years performed some major developmental functions, focussed on all the key sectors of the Nigerian economy (financial, agricultural and industrial sectors).

Overall, these mandates are carried out by the Bank through its various departments.

Quick CBN Information Links

Central Bank of Nigeria Contact Information

Phone: +234 700 225 5226

Email: contactcbn@cbn.gov.ng

Complaints Against Financial Institutions:

cpd@cbn.gov.ng

Authorized Dealer Enquires:

+234 9 462 37804, +234 9 462 37802

Commercial Agricultural Credit Scheme (CACS):

+234 9 46237602

Ethics & Anti-Corruption Helpline:

+234 9 462 39246 +234 9 462 36000 ethicsoffice@cbn.gov.ng anticorruptionunit@cbn.gov.ng

Forex Helpdesk:

+234 9 462 37827 +234 9 462 37831

Address Of Central Bank of Nigeria

Plot 33, Abubakar Tafawa Balewa Way Central Business District, Cadastral Zone, Abuja,

Federal Capital Territory, Nigeria P.M.B. 0187, Garki Abuja. Nigeria

They are open for business Monday through Friday except on national holidays. Official visiting days are Tuesdays and Thursdays by appointment only. Our working hours are from 8:00a.m. – 4:00p.m.

Why is the CBN the only bank that can produce the Naira?

Section 2b and Section 17 of the CBN act gives the CBN the sole right to issue currency notes and coins throughout Nigeria and neither the

Federal Government nor any state Government, Local Government, other person or authority shall issue currency notes, banknotes or coins or any document or token payable to bearer on demand being document or token which are to pass as legal tender.

Section 18 of the CBN act also gives CBN the power to print banknotes and mint coins.

Are machines for printing money available for purchase by the public?

No. The machines are only available to issuing authorities on request.

Why are there no new currencies in circulation?

Analysis of the currency in circulation showed that a large and increasing proportion of the Nigerian currency outside the commercial banking system (COB) is held by the general public who hoard a lot of the new banknotes.

How are new currencies circulated?

CBN evacuates the finished banknotes form Nigerian Security Printing & Minting (NSPM) Plc for distribution to all CBN branches. The branch further distributes the banknotes to DMBs where they are finally released to the public via withdrawals.

Why are the lower denomination banknotes scarce?

The scarcity of lower denomination could be linked to the fact that these notes are held by the public. Absence of Automated Teller Machines (ATM) dedicated to dispense lower denominations has also contributed to the dearth of lower denomination in circulation.


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