NDIC, NESI Make List of 15 Companies Owned or Invested in by CBN and Types of Services They Provide

• The Central Bank of Nigeria is the apex regulatory authority of the banking system in the country
• It was established by the Central Bank of Nigeria Act of 1958, as repealed by the Central Bank of Nigeria Act No. 7 of 2007
• Aside from its primary functions, which include issuing legal tender currency in Nigeria, there are companies in which the CBN has investments or which it owns outrightly

The Central Bank of Nigeria recently released its 2022 financial report after 7 years of waiting, and there were interesting numbers.

Apart from recording a profit of over N100 billion, the report also disclosed that the central bank owes JP Morgan and Goldman Sachs a combined sum of $7.5 billion, among other liabilities.

Also, in the report, the CBN revealed the performance of its various subsidiaries.

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These subsidiaries include Nigerian Security Printing and Minting Plc(NSPM), Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending Plc (NIRSAL), Nigerian Electricity Supply Industry Stabilization Strategy Limited (NESI).

Other companies CBN has investments in include Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), Nigeria Interbank Settlement System (NIBSS), FMDQ-OTC Plc, Bank of Industry (BOI), Bank of Agriculture (BOA).

National Economic Reconstruction Fund (NERFUND) , Nigeria Commodity Exchange (NCX), Africa Finance corporation, Nigerian export Import Bank, Agricultural credit guarantee scheme fund and Nirsal Microfinance bank complete the list.

Here is what the companies do and CBN's level of investment

NSPM

The CBN owns 89.52% of the share capital of Nigerian Security Printing and Minting Plc.

The principal objective of NSPM is the production of Nigerian currency notes and coins together with security documents & products for other businesses.

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NSPM also manufactures and is involved in the importation of printing ink, as well as the provision of technical services.

NIRSAL

CBN holds 100% of the share capital in Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending Plc (NIRSAL).

The CBN set up the subsidiary to spark the agricultural industrialization process through increased production and processing of the greater part of the farm produce/output in the country to boost economic earnings across the value chain.

NESI

The apex bank holds 99.99% of the share capital in Nigerian Electricity Supply Industry Stabilization Strategy Limited (NESI).

The subsidiary is engaged in promoting the long-term sustainability and efficiency of the Nigerian Electricity Supply Industry.

This is achieved through the initiation and encouragement of programs, as well as the creation of mechanisms and processes that are fundamental to the growth and bankability of the industry.

CBN ownership percentage in other companies

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• Nigeria Deposit Insurance Corporation (NDIC): 60%
• AMCON: 50%
• Nigeria Interbank Settlement System (NIBSS): 3.6%
• FMDQ-OTC Plc: 15.4%
• Bank of Industry (BOI): 5.2%
• Bank of Agriculture (BOA): 14%
• National Economic Reconstruction Fund (NERFUND): 3.6%
• Nigeria Commodity Exchange (NCX): 59.7%
• Africa Finance Corporation: 42.4%
• Nigerian Export-Import Bank: 50%
• Agricultural Credit Guarantee Scheme Fund: 40%
• Nirsal Microfinance Bank: 40%

Over N29bn spent printing new naira notes and throwing away old ones

Meanwhile, in another report, Legit.ng revealed that the CBN had provided a breakdown of its financial performance and expenses undertaken during the 12 months of 2022.

Part of the expenses recorded is the over N29 billion spent on printing naira notes and disposing of the bad ones.

The CBN destroys unfit banknotes regularly under strict security and with the authorisation of Section 18(d) of the CBN Act 2007.

Source: Legit.ng