CBN - Central Bank Of Nigeria
The Central Bank of Nigeria (CBN) was founded by the CBN Act in 1958 and started its activities on July 1, 1958.
Objectives
The principal normative objectives of the bank are written in the CBN Act of 1958. Among them, it is necessary to note support for external currency reserves, activity as a banker of last resort and financial consultant to the federal government and contribution to monetary and credit stability and a sound financial environment.
Bank policy
After the end of the Nigerian civil war, the willingness of government to develop the economy appeared. Bowing to the demands of the government, the bank directed its efforts to address shortfalls in credit distribution to the real sector.
Immediately, the bank began to participate in crediting to consumers. Although at first it differed from the initial intentions to carry out transactions through commercial banks in consumer finance.
Nonetheless, bank policy was a hereditary indigenisation policy during those years. With the help of the central bank, CBN undertakes the printing of money, securities regulation and the implementation of treasury instruments into the capital market.
