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30-520: The Central Bank of Nigeria Act 1958 (No 24) or CBN Act established the Central Bank of Nigeria . The bank commenced operations on July 1, 1959. The Central Bank of Nigeria Act 1958 was repealed by section 54(2) Archived 2018-07-02 at the Wayback Machine of the Central Bank of Nigeria Decree 1991 . It in turn was replaced by the Central Bank of Nigeria Act 2007 . This article relating to

60-614: A banking business in Nigeria, with specific procedures. The act prohibits anyone from operating a banking business in Nigeria without such a license. Additionally, the BOFIA empowers the Governor of the CBN to issue regulations, guidelines and policies to banks, specialized banks, and other financial institutions in Nigeria.  And to appoint officers to supervise and examine these institutions according to

90-608: A few banks had failed. To curtail further failures and to prepare for indigenous control, in 1958, a bill for the establishment of the Central Bank of Nigeria was presented to the House of Representatives of Nigeria . The Central Bank of Nigeria Act No. 24, 1958 was published as chapter 30 of the 1958 edition of the Laws of Nigeria and Lagos. It was fully implemented on 1 July 1959, when the Central Bank of Nigeria came into full operation and remained

120-604: A step towards introducing a separate currency with a flexible exchange rate against sterling, while no such plan was considered for British West Africa. With the exception of Jamaica where special low denomination coins were issued in place of the British copper coins, due to local superstitions surrounding the use of copper coinage for church collections, authorities in London did not replace any sterling coins with local issues for any other British colony . The British West African pound

150-739: Is a leading member of the Alliance for Financial Inclusion . It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the Maya Declaration during the 2011 Global Policy Forum held in Mexico. The CBN has ensured that all banks in Nigeria have uniform year-ends. The various commercial banks include Access Bank Plc, Citibank Nigeria Plc, Diamond Bank Plc, First Bank of Nigeria Plc, Guaranty Trust Bank Plc, Zenith Bank plc, Wema Bank, Stanbic IBTC Bank, Fidelity Bank, United Bank for Africa etc. In 2009,

180-508: Is a standard library at the Headquarters and all other branches, it has information resources like journals , magazines , books of various fields of study can be used and the library is open for students, researchers and staff. In 1948, an inquiry under the leadership of G.D Paton was established by the colonial administration to investigate banking practices in Nigeria . Prior to the inquiry,

210-445: Is not a cryptocurrency per se but effectively build on the blockchain technology and available through the mobile applications eNaira Speed Wallet and eNaira Speed Merchant Wallet. At its launching by President Muhammadu Buhari on 25 October, the platform was joined by 33 banks and ₦500m worth of eNaira was minted. The introduction of the eNaira came a few months after the government had banned all cryptocurrencies. In June 2023,

240-507: The British West African pounds that were circulating in Nigeria. The Central Bank of Nigeria is known for the blue color of its office building at different branches of the country. The CBN's early 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

270-602: The World Economic Forum . On 14 June 2023, the Naira fell 23% in a day, to a rate of ₦600 to US$ 1, as the central bank abandoned its currency peg and allowed the naira to trade freely. The Senate of the Federal Republic of Nigeria confirmed the nomination of Dr Olayemi Cardoso as the 12th Governor of the Central Bank of Nigeria on 26 September 2023. The Central Bank of Nigeria (Establishment) Act 2007 affirms

300-502: The law of Nigeria is a stub . You can help Misplaced Pages by expanding it . Central Bank of Nigeria The Central Bank of Nigeria (CBN) is the central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced operations on 1 July 1959. The major regulatory objectives of the bank as stated in the CBN Act are to: maintain the external reserves of

330-597: The CBN fired the CEOs and executive directors of 5 Nigerian banks ( Afribank , FinBank Nigeria , Intercontinental Bank , Oceanic Bank and Union Bank of Nigeria ) for mismanagement of loans and over-reliance on the CBN. In 2014, the President Goodluck Jonathan suspended the governor of the CBN Sanusi Lamido Sanusi on grounds of financial recklessness. In April 2021, the Central Bank of Nigeria fired

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360-833: The Gambia . A distinctive set of sterling coinage for use in British West Africa was authorized by a series of Orders in Council beginning with the Nigeria Coinage Order, 1906, and in 1912, the authorities in London set up the West African Currency Board . The circumstance prompting this move was a tendency for standard sterling coins shipped to the West African territories to leave the region and return to circulation in

390-468: The UK, causing a local dearth of coinage. A unique British West African variety of sterling coinage would not be accepted in the shops of Britain and so would remain in circulation locally. In 1910, Australia commenced issuing its own distinctive varieties of sterling coinage, but the reasons for doing so were quite different from those relating to British West Africa. Australian authorities issued local coinage as

420-438: The affairs of the three major expatriate commercial banks in order to forestall any bias against indigenous borrowers and consumers. By 1976, the federal government had acquired 40% of equity in the three largest commercial banks. The bank's slow reaction to curtail inflation by financing huge deficits of the federal government has been one of the sore points in the history of the central bank. Coupled with its failure to control

450-430: The banking industry was largely uncontrolled. The G.D. Paton report, an offshoot of the inquiry became the cornerstone of the first banking legislation in the country: the banking ordinance of 1952. The ordinance was designed to prevent non-viable banks from mushrooming and to ensure orderly commercial banking. The banking ordinance triggered rapid growth in the industry, and with growth also came disappointment. By 1958,

480-445: The burgeoning trade arrears in 1983, the country was left with huge trade debts totaling $ 6 billion. Governors of the Central Bank since independence: The Central Bank was instrumental in the growth and financial credibility of Nigerian commercial banks by making sure that all the financial banks operating in the country had a capital base (required reserves). This helped to ensure that bank customers just did not bear losses alone, in

510-410: The country; promote monetary stability and a sound financial environment, and act as a banker of last resort and financial adviser to the federal government. The central bank's role as lender of last resort and adviser to the federal government has sometimes pushed it into murky political controversies. After the end of colonial rule, the desire of the government to become proactive in the development of

540-424: The demands of the federal budget . 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 . By the end of 1979, most of the banks did not adhere to their credit limits and favoured a loose interpretation of CBN's guidelines. The central bank did not effectively curtail

570-550: The dictates of the governor. Also, Section 5 of the BOFIA empowers the CBN to revoke the license of any bank for stipulated reasons. British West African pound In the 19th century, the pound sterling became the currency of the British West African territories, and standard issue British coinage circulated. The West African territories in question were Nigeria , the Gold Coast (now Ghana ), Sierra Leone and

600-457: The economy became visible, especially after the end of the Nigerian civil war , the bank followed the government's desire and took a determined effort to supplement any show shortfalls, credit allocations to the real sector. The bank became involved in lending directly to consumers, contravening its original intention to work through commercial banks in activities involving consumer lending. However,

630-424: The establishment of a body known as the Central Bank of Nigeria. The act also states the fundamental objects of the bank, which include the sole power to issue notes and coins, maintain an external reserve for Nigeria, and generally supervise the entire banking system in Nigeria. The Banks and Other Financial Institutions Act, 2020 , empowers the Governor of the CBN to issue a license to anyone wanting to start

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660-403: The event of bank failures. However, this policy led to the failure of some Nigerian commercial banks; some banks could not meet the new capital base requirements, which was 25,000,000,000.00 Naira at the time. Those banks that could not meet the new capital base requirements had to fold up, while some that could not come up with the money on their own, had to merge with other banks in order to raise

690-454: The money. This policy helped solidify the commercial banks of Nigeria and made it impossible for individuals or organizations without financial stability to operate a bank in the country. Today Nigeria has one of the most advanced financial sectors in Africa, with most of its commercial banks having branches in other countries. The Central Bank is active in promoting financial inclusion policy and

720-465: The policy was an offspring of the indigenization policy at the time. Nevertheless, the government through the central bank has been actively involved in building the nation's money and equity centres, forming securities regulatory boards, and introducing treasury instruments into the capital market. The bank has thirty-six branches each in the 36 states of the federation and the headquarters in FCT. The Library

750-659: The president of CBN, Godwin Emefilele was arrested by the Nigerian State Security Service and removed from his position at the CBN following a previous arrest attempt in December 2022 for "financing terrorism, fraudulent activities, and economic crimes of national security dimension." This was after claims that Emefiele was waging a war on cash under a directive from the International Monetary Fund and

780-408: The prevalence of short term loan maturities. Most loans given out by commercial banks were usually set within a year. The major policy to balance this distortion in the credit market was to create a new Bank of Commerce and industry, a universal bank. However, the new bank did not fulfill its mission. Another policy of the bank in concert with the intentions of the government was direct involvement in

810-599: The primary statute governing the CBN until its repeal by the Central Bank of Nigeria Act No.24, 1991. In April 1960, the Bank issued its first treasury bills . In May 1961, the Bank launched the Lagos Bankers Clearing House, which provided licensed banks a framework in which to exchange and clear checks rapidly. By 1 July 1961, the Bank had completed issuing all denominations of new Nigerian notes and coins and redeemed all of

840-645: The whole board of the First Bank of Nigeria which was in a «grave financial condition». In July 2021, CBN announced that it had ended the sales of foreign exchange (forex) to bureau de change operators. Following the announcement, all forex sales were to go directly to commercial banks. That same month the Bank’s governor, Godwin Emefiele, said that Nigeria would launch its own cryptocurrency, called "e-naira," in October, which

870-580: Was also adopted by Liberia in 1907, replacing the Liberian dollar , although it was not served by the West African Currency Board. Liberia changed to the US dollar in 1943. Togo and Cameroon adopted the West African currency in 1914 and 1916 respectively when British and French troops took over those colonies from Germany as part of World War I . Beginning in 1958, the British West African pound

900-541: Was replaced by local currencies in the individual territories. The replacements were: In 1907, aluminium 1 ⁄ 10 d and cupro-nickel 1d coins were introduced. Both coins were holed. In 1908, cupro-nickel replaced aluminium in the 1 ⁄ 10 d and, in 1911, holed, cupro-nickel 1 ⁄ 2 d coins were introduced. In 1913, silver 3d and 6d, 1/– and 2/– were introduced. In 1920, brass replaced silver in these denominations. In 1938, larger, cupro-nickel 3d coins were introduced, with nickel-brass replacing brass in

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