What are the functions of the Central Bank of Nigeria?


Quick Answer

The primary function of the Central Bank of Nigeria is to maintain stability for the country's price and money, issuing legal currency and maintaining foreign reserves to ensure the international value of the domestic currency. Other functions of the CBN include the promotion of a sound financial system domestically.

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Full Answer

The CBN also functions as a financial and economic adviser to the Nigerian federal government. It serves the role of the government's banker and ensures that the Banks and Other Financial Institutions Act of 1991 is administered. As of 2015, this responsibility extends to any amendments that are made to the BOFI Act to ensure that the country's banking and financial practices are of high standards.

Another function that the CBN has performed since its inception is aiding the development of the Nigerian economy's industrial, agricultural and financial sectors. The CBN was also granted overall administrative authority over the Nigerian federal government's financial and monetary policies. This authority was granted to the CBN by the CBN Act of 2007.

The Central Bank of Nigeria received its mandate as part of a 1958 act of Parliament. As of 2015, this act has been amended six times: 1991, 1993, 1997, 1998, 1999 and 2007.

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