Central Bank of Nigeria
To be one of the most efficient and effective world’s Central Banks in promoting and sustaining economic development.
To be proactive in providing a stable framework for the economic development of Nigeria through the effective, efficient and transparent implementation of monetary and exchange rate policy and management of the financial sector.
Statements of CBN Mandate
The mandate of the Central Bank of Nigeria (CBN) is derived from the Act that sets it up. The initial one was the 1958 Act of Parliament which was severally amended before it was jettisoned and replaced by the CENTRAL BANK OF NIGERIA Decree No. 24 of 1991 (as amended in 1993, 1997, 1998 and 1999). The decree, (now an Act of the National Assembly of the Federal Republic of Nigeria) makes provision for the continuance of the CBN with a Board of Directors consisting of the Governor, four deputy governors and five non- executive directors and charges the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government, both within and outside Nigeria.
The statutory mandates of the CBN as in the Act are as follows:
1. To issue legal tender currency
2. To maintain external reserves
3. To safeguard the international value of the legal tender currency
4. To promote monetary stability and a sound financial system in Nigeria
5. To act as banker and financial adviser to the Federal Government.
Core Mandate Of The CBN
The core mandates of the Central Bank of Nigeria (CBN) derive from the provisions of the CBN Decree No. 24, 1991 as amended. The mandates are mainly:
– Issuance of legal tender currency notes and coins in Nigeria;
-Maintenance of Nigeria’s external reserve to safeguard the international value of the legal tender currency;
-Promotion and maintenance of monetary stability and a sound and efficient financial system in Nigeria; and
-Acting as banker and financial adviser to the Federal Government.
The Bank is also charged with responsibility of supervising and regulating banks and other financial institutions, subject to the BOFID Decree No. 25, 1991, as amended, which aims at ensuring high standards of banking practice and sustaining financial stability. The CBN accomplishes this task through the supervision and surveillance of the financial system and promotion of an efficient clearing and payment system. The surveillance of banks enhances competition, while prudential regulations promote stronger balance sheets and higher quality of bank portfolios.
The execution of CBN’s core mandate involves a review of developments in the economy in the preceding year and setting objectives and targets for the current year.