CENTRAL BANK OF NIGERIA

The Central Bank of Nigeria Act of 1991 provides for the continuance of the
Central Bank of Nigeria (CBN) and its overall control and administration of the
monetary and banking policies of the Federal Government of Nigeria both within
and outside Nigeria. It simply establishes the Central Bank of Nigeria as the
Apex Financial Regulatory Institution in Nigeria.

Principal objects of the Central Bank

The principal objects of the Central Bank are:
(a) Issue legal tender currency in Nigeria;
(b) Maintain external reserves to safeguard the international value of the
legal tender currency;
(c) Promote monetary stability and a sound financial system in Nigeria;
and
(d) Act as banker and financial adviser to the Federal Government.
The Central Bank has powers to:
(a) Issue demand drafts;
(b) Purchase and sell gold coins or bullion;
(c) Open accounts for and accept deposits from Federal, State and local
governments and parastatals;
(d) Purchase, sell, discount and rediscount inland bills of exchange and
promissory notes;
(e) Purchase, sell, discount and rediscount treasury bills, treasury certificates
and project-tied bonds issued by State Governments, local governments
and parastatals;
(f) Purchase and sell securities of the Federal Government;
(g) Grant advances for fixed deposits not exceeding three months against
publicly issued treasury bills;
(h) Determine exchange rate of the Naira;
(i) Sole right of issuing notes and coins;
(j) Power to print notes and mint coins;
(k) Denominate currency notes and coins;
(l) Buy and sell Nigerian currency;
(m) Maintain accounts with central banks and other banks outside Nigeria
(n) Act as correspondent, banker or agent for any central bank or other
monetary authority;
(o) Promote the establishment of bank clearing systems;
(p) Grant temporary advances to commercial banks;
(q) Act as clearing house for banks to facilitate the clearing of cheques and
credit instruments;
(r) Banker to other bankers;
(s) Carry out open market operations for the purpose of maintaining
monetary stability in the Nigerian economy;
(t) Sell or place by allocation to each bank any stabilisation securities
issued;
(u) Issue and manage Federal Government loans;
(v) Act as banker to State and local governments;
(w) Power to issue directives on cash reserves; and
(x) Publish minimum re-discount rate

Prohibited Activities

The Central Bank shall not:
(a) Engage in trade or otherwise have a direct interest in any commercial,
agricultural or industrial undertaking except for the purpose of its
business, provided that all such interest so acquired shall be disposed
of at the earliest suitable time;
(b) Grant loan upon the security of any shares;
(c) Purchase, acquire or lease real property except for the provision of
business premises for the Central Bank and its agencies and residences
for the Governor, Deputy Governors and officers and other employees of
the Central Bank;
(d) Draw or accept bills payable otherwise than on demand;
(e) Pay interest on deposits except deposits in respect of cash reserve and
special deposits made by various banks to the Central Bank, to maintain
the required ratio of the deposit liabilities;
(f) Accept for discount or as security for an advance made by the Central
bills or notes signed by members of the Board or by officers and other
employees of the Bank; and
(g) Open accounts for or accept deposits from persons other than Federal,
State, local governments, institutions and corporations of all such
governments, banks and other credit or financial institutions, central
banks and other banks outside Nigeria.

Audit

The accounts of the Central Bank shall be audited by an auditor or auditors
appointed by the Board.
(a) The President may direct that the Auditor-General of the Federation to
conduct an examination of the accounts of the Central Bank.
(b) Publication of annual accounts and reports:
The Central Bank shall within two months after the close of each financial
year, transmit to the President a copy of its annual accounts certified by
the auditor.
(c) The Central Bank shall within four months from the close of each financial
year, submit to the President a report on its operations during the year.
(d) Any report required to be submitted to the President shall be published
by the Central Bank in such a manner as the Governor of Central Bank
may direct.
(e) The Board of Central Bank shall ensure that accounts submitted be
published in the Gazette.
(f) The Central bank shall publish a monthly return of its assets and
liabilities.
(g) A copy of the return shall be forwarded to the President and shall be
published in the Gazette.
(h) The gold tranche position at the International Monetary Fund shall form
part of the external reserve assets of the Bank.

Exemption from Stamp Duty

The Central Bank shall not be liable for the payment of any stamp duty under
the Stamp Duties Act in respect of its notes issued as currency.

Exemption from Income Tax

The Central Bank of Nigeria shall be exempted from the payment of tax under
the Companies Income Tax Act.

Exemption from Companies and Allied Matters Act

The provisions of the Companies and Allied Matters Act shall not apply to the
Central Bank.

Share : Facebook Twitter Google+ Digg

Jika Anda menyukai Artikel di blog ini, Silahkan klik disini untuk berlangganan gratis via email, Anda akan mendapat kiriman artikel setiap ada artikel yang terbit di Our Akuntansi