Functions of CENTRAL BANK OF NIGERIA

CENTRAL BANK OF NIGERIA

The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1958. The major regulatory objectives of the bank as stated in the Act is to;

maintain the external reserves of the country, promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government.

The central bank’s role as lender of the last resort and adviser to the federal government has sometimes pushed it into murky regulatory waters. Earlier, the CBN’s functions were mainly to act as the government’s agency for the control and supervision of the banking sector, to monitor the balance of payments according to the demands of the federal government and to tailor monetary policy along the demands of the federal budget.

The central bank’s initial lack of financial competence over the finance ministry led to the deferment of major economic decisions to the finance ministry. A key instrument of the bank was to initiate credit limit legislation for bank lending. The initiative was geared to make credit available to neglected national areas such as agriculture and manufacturing.

Today, the Central Bank of Nigeria has grown to become one of the most popular and trusted banks in the country with people of all races and financial backgrounds turning to it for all types of financial services.

There are however some scams that have used the name of the bank to defraud bankers. The bank is in no way associated with such scams and the necessary measures are taken against those that are caught.