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MPC Mandate

The legal backing for monetary policy by the Bank derives from the various statutes of the bank such as the CBN Act of 1958 as amended in CBN Decree No. 24 of 1991, CBN Decree Amendments 1993,No. 3 of 1997,No. 4 of 1997,No. 37 of 1998,No. 38 of 1998,1999 and CBN Act of 2007.
Section 12 Sub-sections (1) to (5), CBN Act of 2007 (Ammended)
In order to facilitate the attainment of price stability and to support the economic policy of the Federal Government, there shall be a Committee of the Bank known as the Monetary Policy Committee (in this Act referred to as "the MPC")

the Governor of the Bank who shall be the Chairman
the four Deputy Governors of the Bank
two members of the Board of Directors of the Bank
three members appointed by the President; and
two members appointed by the Governor

MPC Committee

The MPC shall have responsibility within the Bank for formulating monetary and credit policy

The appointment of a member of the MPC pursuant to sub-section 2 (d) and (e) of this section, the remuneration , filling of temporary vacancies,

qualification, tenure of office and disqualification shall be subject to the same terms as are stipulated for a Director under sections 10 and 11 of this Act.

The provisions of the Second Schedule to this Act shall have effect with respect to the proceedings of the MPC

CURRENCY

Issue System

Naira notes and coins are printed/minted by the Nigerian Security Printing and Minting Plc (NSPM) Plc and other overseas printing/minting companies and issued by the Central Bank of Nigeria (CBN). At the currency printing works of the NSPM Plc, quality is meticulously controlled throughout every process of currency production. This guarantees that every note issued meets the required standard. The CBN maintains an office called Mint Inspectorate in the premises of the NSPM Plc to maintain security and quality of Naira notes and coins.

Currency is issued to deposit money banks through the branches of the CBN, and old notes retrieved through the same channel. Currency deposited in the CBN by the banks are processed and sorted to fit and unfit notes in line with the clean note policy. The clean notes are re-issued while the dirty notes are destroyed.

Legal Tender

Security Features

History of Nigerian Currency

Currency in Circulation

Currency in Circulation (₦ m)

N 2,055,946 - in 10/31/2019
N 2,005,600 - in 9/30/2019
N 2,018,840 - in 8/30/2019
Note.: The above figures the last 12 captured months figures and are in millions of Naira.

Look up other Dates

DEVELOPMENT FINANCE

Development Financing

Development financing is one of the requirements for sustainable economic growth in any economy. The supply of finance to various sectors of the economy will promote the growth of the economy in a holistic manner and this, will make development, welfare improvement to proceed at a faster rate.

The Central Bank of Nigeria development finance initiatives involve the formulation and implementation of various policies, innovation of appropriate products and creation of enabling environment for financial institutions to deliver services in an effective, efficient and sustainable manner. The initiatives are mainly targeted at agricultural sector, rural development and micro, small and medium enterprises.

Financial Inclusion

Financial inclusion has continued to assume increasing recognition across the globe among policy makers, researchers and development oriented agencies. Its importance derives from the promise it holds as a tool for economic development, particularly in the areas of poverty reduction, employment generation, wealth creation and improving welfare and general standard of living.

A survey conducted in Nigeria in 2008 by a development finance organization, the Enhancing Financial Innovation and Access revealed that about 53.0% of adults were excluded from financial services. The global pursuit of financial inclusion as a vehicle for economic development had a positive effect in Nigeria as the exclusion rate reduced from 53.0 % in 2008 to 46.3 % in 2010.

PAYMENTS SYSTEM

Payments System

The payments system plays a very crucial role in any economy, being the channel through which financial resources flow from one segment of the economy to the other. It, therefore, represents the major foundation of the modern market economy. Essentially, there are three pivotal roles for the payments system, namely: the Monetary Policy role, the financial stability role and the overall economic role.

The Nigerian Payments System witnessed remarkable achievements in the recent past, with the introduction of a number of initiatives under the Payments System Vision 2020

Payments System Initiatives

Implementation of Bank Verification Number (BVN) Scheme to address issues associated with the absence of unique identifier of bank customers across the industry
Issuance of Guidelines on International Money Transfer services in Nigeria
Issuance of revised Guidelines for card issuance and usage in Nigeria
Implementation of industry e-reference portal
Abolished fees on cash deposit above the cash-less policy threshold.

RESERVE MANAGEMENT

Liberalization & Development of The Foreign Exchange Market

Since the introduction of Whole Sale Dutch Auction System (WDAS) on February 20, 2006, the liberalized Foreign Exchange Market witnessed unprecedented stability most of which include the following:

Unification of exchange rates between the Official and Inter-bank Markets and resolution of the multiple currency problems.
Facilitation of greater market determination of exchange rates for the Naira vis-a-vis other currencies

Gains with WDAS included :

Parallel market appreciation first time in 20 years.
Convergence of official and inter-bank rates, thus unifying the two.
Revision of the Foreign Exchange Manual
Sale of Foreign Exchange to Bureaux-de-Change operators in an effort to increase access of foreign exchange to small end-users, bridge the supply gap and develop the local Bureaux-de-Change (BDCs)

FINANCIAL STABILITY

Supervision Framework

The supervisory function of CBN is structured into four departments:

1. Financial Policy and Regulation Department
2. Banking Supervision Department
3. Other Financial Institutions Supervision Department
4. Consumer Protection Department

Financial Policy and Regulation department develops and implements policies & regulations aimed at ensuring financial system stability. It also licenses & grants approvals for banks and other financial institutions.

Banking Supervision Department carries out the supervision of Deposit money banks and Discount houses while Other Financial Institutions Supervision Department supervises other financial institutions.

Supervision Publications

Supervision Circulars & Guidelines

FSRCC

The CBN in April 1994 undertook to facilitate a formal framework for the co-ordination of regulatory and supervisory activities in the Nigerian financial sector by establishing the Financial Services Coordinating Committee (FSCC) to address more effectively, through consultations and regular inter-agency meetings, issues of common concern to regulatory and supervisory bodies.

On 27th May, 1994, the name of the Committee was changed to Financial Services Regulation Coordinating Committee (FSRCC). The Committee was accorded legal status by the 1998 amendment to Section 38 of the CBN Act 1991 and formally inaugurated by the Governor of the CBN in May 1999. http://www.fsrcc.gov.ng/

MPC Mandate

MPC Committee

Issue System

Currency in Circulation

Development Financing

Financial Inclusion

Payments System

Payments System Initiatives

Liberalization & Development of The Foreign Exchange Market

Gains with WDAS included :

Supervision Framework

FSRCC

Annual Reports

Other Publications

Other Publications

Statistical Reports

CBN Economic Reports

14th Seminar For Finance Correspondents & Business Editors

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