REGION F – AFRICA
THE SINKING OF THE TITANIC
(April 14-15, 1912 – North Atlantic Ocean)
The Central Bank
ROTHSCHILD OWNED & CONTROLLED CENTRAL BANK
The Official Story
THE 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 July 1, 1959.
The major regulatory objectives of the bank as stated in the CBN Act are to: maintain the external reserves of 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 regulatory waters. After the end of imperial rule the desire of the government to become pro-active in the development of 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, 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 centers, 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.
Statutory Duties and Powers
The Central Bank of Nigeria (Establishment) Act 2007 affirms 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 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 the dictates of the governor. Also, Section 5 of the BOFIA empowers the CBN to revoke the license of any bank for stipulated reasons.