Nigeria Central Bank

[Admin]

Statement of CBN Core Mandate
The mandate of the Central Bank of Nigeria (CBN) is derived from the 1958 Act of Parliament, as amended in 1991, 1993,1997,1998,1999 and 2007.

The CBN Act of 2007 of the Federal Republic of Nigeria charges the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government.

The objects of the CBN are as follows:

1. ensure monetary and price stability;
2. issue legal tender currency in Nigeria;
3. maintain external reserves to safeguard the international value of the legal tender currency;
4. promote a sound financial system in Nigeria; and
5. act as Banker and provide economic and financial advice to the Federal Government.

Consequently, the Bank is charged with the responsibility of administering the Banks and Other Financial Institutions Act (BOFIA), 2020, with the sole aim of ensuring high standards of banking practice and financial stability through its surveillance activities, as well as the promotion of an efficient payment system.

In addition to its core functions, CBN has over the years performed some major developmental functions, focussed on all the key sectors of the Nigerian economy (financial, agricultural and industrial sectors). Overall, these mandates are carried out by the Bank through its various departments.


Minor fire outbreak at the Jos branch of Central bank of Nigeria, promptly contained today, April 21, 2020.


Contact Central bank with the information below.
Phone: +234 700 225 5226

Toll free line: +234 800 225 5226

Email: contactcbn@cbn.gov.ng

Complaints Against Financial Institutions:
cpd@cbn.gov.ng

Authorized Dealer Enquires:
+234 9 462 37804, +234 9 462 37802

Commercial Agricultural Credit Scheme (CACS):
+234 9 46237602

Ethics & Anti-Corruption Helpline:
+234 9 462 39246 +234 9 462 36000 ethicsoffice@cbn.gov.ng anticorruptionunit@cbn.gov.ng

Forex Helpdesk:
+234 9 462 37827 +234 9 462 37831

Address
Central Bank of Nigeria
Plot 33,
Abubakar Tafawa Balewa Way
Central Business District,
Cadastral Zone,
Abuja,
Federal Capital Territory,
Nigeria
P.M.B. 0187,
Garki Abuja.
Nigeria
We are open for business Monday through Friday except on national holidays. Official visiting days are Tuesdays and Thursdays by appointment only. Our working hours are from 8:00a.m. - 4:00p.m.

 

[Adewale Stock]

CBN has forced their debtors to pay back and one of them is OTUDEKO witg a debt of over N100b.

CBN gave him a deadline to pay back and that is why he is doing some SELL-OFF to meet the deadline and pay off FBNH..

 

[Admin]

Conduct of Fiscal Policy
MPC Mandate of the CBN | Fiscal Policy | Committees | Calendar of Meetings | Educational | FAQ's | Policy Decisions | Policy Communiques | Intl. Economic Cooperations | Monetary Policy Review | Policy Measures | Understanding Monetary Policy Series | Monetary, Credit, Foreign Trade and Exchange policy Guidelines | Monetary Policy Committee Reforms | AfCFTA


THE AMENDED AND SUPPLEMENTARY BUDGETS OF 2010

The 2010 Appropriation Bill was passed by the National Assembly and assented to by Mr. President in April 2010. In the light of prevailing revenue realities and some unanticipated expenditure items such as the wage increases awarded to civil servants, university lecturers, and medical personnel, Power Holding Company of Nigeria (PHCN) arrears of monetisation and additional funding for Independent National Electoral Commission (INEC), there was a need to review the 2010 Appropriation and this resulted in two Supplementary Budgets. Following a series of consultations between the Executive and Legislature, the amended budget as passed by the National Assembly (NASS) in May 2010 stood at N4,427 billion. It was based on an oil benchmark price of US$60.0 per barrel in line with the oil-price based fiscal rule, oil production of 2.25 million barrels per day and an exchange rate of N150.0/US$. The first and second supplementary budgets appropriated were N644.75 billion and N87.72 billion, respectively. Therefore, the aggregate expenditure approved in the 2010 Budgets amounted to N5,160 billion, of which N1,765 billion and N2,669 billion were allocated to capital expenditure and recurrent expenditure, respectively.


2010 Budget Performance:

Revenue
Oil prices averaged US$81 per barrel with oil production of 2.462mbpd for the year, resulting in gross oil revenue of N5,396 billion or 10 per cent above the budgeted revenue of N4,902 billion while FGN retained Revenue of N2,960 billion was realised, compared with N3,180 billion projected, representing a shortfall of N221.15 billion or 6.95 per cent as at end-December 2010.

The FGN's share of oil revenue was short by N188.6 billion or 12.96 per cent of the budget of N1,456 billion at N1,267 billion. Its aggregate share of VAT, CIT and Custom Duties fell short of N530.1 billion target by 1.70 per cent with N521.05 billion realised as at end-December 2010. Non-oil revenue collection showed that CIT, performed above budget by 12.63 per cent, while Customs collection fell by 22.74 per cent. FGN's aggregate share of VAT, CIT and Customs Duties fell short by N9.05 billion or 1.70 per cent of the budgeted N530.1 billion to N521.05 billion as at end-December 2010.

Expenditure
Of the 2010 budget total expenditure of N5,160 billion, actual expenditure stood at N4,050 billion or 78.48 per cent. Actual aggregate expenditure including recurrent releases were on track for personnel cost, overheads, statutory transfers and debt service charges amounting to N3,163.19 billion in 2010, compared with the amended 2010 budget of N3,395.21 billion.

Of the N1,765 billion earmarked for capital expenditure, only N956.11 billion was released and cash-backed. Of the N956.11 billion released and cash-backed, Government utilised N935.61 billion which put the average capital utilization at 97.86 per cent as at end-March 2011, compared to 70.42 recorded as at end-December, 2010.

The total level of deficit (financing) was 6.06 per cent of GDP in 2010. The major concern with respect to the budget performance was the inefficiency in government spending and increased wage bill from N857.04 billion in 2009 to N1,381 billion in 2010.<

THE 2011 AMENDED BUDGET

The 2011 Budget witnessed a long delay in passing by the National Assembly (NASS). Its total aggregate expenditure as finally amended by the NASS in May 2011 stood at N4,485.6 billion. Of which capital expenditure, statutory transfers and recurrent expenditure were N1,148 billion, N417.6 billion and N2,920 billion, respectively. The total level of deficit financing was estimated at 2.96 per cent of GDP. Oil production was projected at 2.3 million barrels per day.

2011 Budget Performance:

Revenue
The 2011 Elections, the subsequent inauguration of a new Administration in May 2011 and the passage of the 2011 Amendment Budget in same month all affected the implementation of the budget in 2011. The implementation of the 2011 Budget indicates that revenue performance improved during the year over the level in 2010.

Oil prices averaged US$114.07 per barrel while actual oil production recorded 2.40 mbpd for the year 2012. This resulted in actual gross oil revenue of N8,848.62 billion or 29.83 per cent exceeding the 2011 budget estimate of N6,815.63 billion. On the other hand, non-oil revenue of N1,139.01 billion was; however, lower than the 2011 budget estimate of N1,298.33 billion by N159.32 billion or 12.27 per cent.

The actual Federal Government retained revenue in 2011 stood at N3,140.64 billion indicating a short fall of N252.69 billion or 7.45 per cent when compared with the 2011 budget estimate of N3,393.20 billion. The sources of Federal Government revenue were: FGN share of the Federation Account Allocation Committee (FAAC) N2,792.51 billion or 88.92 per cent, FGN Independent Revenue N182.49 billion or 5.81 per cent, FGN share of VAT N87.29 billion or 2.78 per cent, External Creditor Funding N41.66 billion or 1.33 per cent, 2010 Unspent Balance N19.76 billion or 0.63 per cent, Plea Bargain N8.70 billion or 0.28 per cent and FGN Balance of Special Accounts N8.23 billion or 0.26 per cent.

Expenditure
The actual aggregate expenditure of the Federal Government in 2011 stood at N4,299.16 billion. The breakdown of FGN expenditure in the period showed the following: Recurrent (non-debt) Expenditure (N2,527.26 billion), Capital Expenditure (N809.96 billion), Statutory Transfer (N326.27 billion) and Debt Service (N527.07 billion). The implementation of the capital budget had been slow and inefficient, and had been extended to March, 2012.

The overall budget deficit for the period stood at N1,158.52 billion. This indicated that the Federal government's total expenditure exceeded its revenue in the review period.
2006 | 2007 | 2008 | 2009 |
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[Admin]

Why is the CBN the only bank that can produce the Naira?
Section 2b and Section 17 of the CBN act gives the CBN the sole right to issue currency notes and coins throughout Nigeria and neither the Federal Government nor any state Government, Local Government, other person or authority shall issue currency notes, banknotes or coins or any document or token payable to bearer on demand being document or token which are to pass as legal tender. Section 18 of the CBN act also gives CBN the power to print banknotes and mint coins.

Are machines for printing money available for purchase by the public?
No. The machines are only available to issuing authorities on request.

What Department of the CBN is responsible for the printing of money?
Currency Operations Department.

What is the purpose of printing polymer notes?
To extend the life span of the banknotes as the polymer notes lasts three times longer than the paper banknotes.

How long does the polymer note last?
18 to 24 months.

Where can one change currency notes?
Deposit Money banks (DMBs) and CBN.

Can coins be deposited in the Banks?
Yes.

How are new currencies circulated?
CBN evacuates the finished banknotes form Nigerian Security Printing & Minting (NSPM) Plc for distribution to all CBN branches. The branch further distributes the banknotes to DMBs where they are finally released to the public via withdrawals.

Why are there no new currencies in circulation?
Analysis of the currency in circulation showed that a large and increasing proportion of the Nigerian currency outside the commercial banking system (COB) is held by the general public who hoard a lot of the new banknotes.

Why are the lower denomination banknotes scarce?
The scarcity of lower denomination could be linked to the fact that these notes are held by the public. Absence of Automated Teller Machines (ATM) dedicated to dispense lower denominations has also contributed to the dearth of lower denomination in circulation.

Why are there huge numbers of dirty One Hundred Naira notes in circulation?
Handling habits of the general public such as, squeezing, staining, spraying etc. greatly contributes to soiling of the banknotes.

In view of the fact that our politicians and leaders abuse the naira at rallies and public events, how do we expect the people to treat the naira with care?
CBN constantly sensitizes the general public, politicians and leaders through public enlightenment campaigns through the print and electronic media on how to properly handle the naira. Further sensitization campaigns are arranged to engage politicians, leaders and other respected elders to make them change champions of the Bank’s Clean Notes Policy. This would enable the public follow suit.

Can an individual bring a different currency other than the Naira to the museum for exchange?
No. However, Currency Museum receives donations of artefacts and currencies from other countries for display.

Does CBN collect old currencies as donations for the Museum?
Yes.

How does the Central Bank of Nigeria know the accurate amount of currency in circulation (CIC) and how correct is the information on the site concerning currency in circulation?
Currency in circulation can be defined as ‘currency outside the vaults of Central Bank, that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks. The Central Bank of Nigeria employs what is referred to as the "accounting/statistical/withdrawals & deposits approach" to compute the CIC in Nigeria. This approach involves tracking the movements in CIC on a transaction by transaction basis. That is, for every withdrawal made by a DMB at one of CBN’s Branches, an increase in CIC is recorded, and for every Deposit made by a DMB at one of CBN’s Branches, a decrease is in CIC is recorded. The transactions listed above are all recorded in the Central Bank’s Currency In Circulation account, and the balance on the account at any point in time represents the country’s Currency in Circulation. The accuracy of the CIC figure reported on the Bank’s website is a function of the postings made into the CIC account of the Bank at the 37 Branches across the country. The Bank however operates a robust reconciliation/call-over system which serves to highlight erroneous or non-impacted postings made into the CIC account in order to have them resolved within the shortest possible time. This ensures that the CIC figure reported by the Bank at any point is free from material error.

What are the factors considered before new currencies are printed?
The factors include; inflation rate, Gross Domestic Product (GDP), buffer stock, replacement rate from currency disposed among others.

Are counterfeit notes processed money by the CBN with printing errors?
No: Banknotes with printing errors are termed imperfect notes or irregular notes and are identified and disposed while counterfeit notes are fake notes produced by fraudsters using high resolution photocopiers.

Can members of the public report incidences involving fake currency to CBN?
Yes. Reports should be submitted to the Director, Currency Operations Department or the nearest CBN Branch.

What will be the implication, when counterfeiters have the full knowledge of all the security features of the Naira Notes?
It is unlikely for counterfeiters to have full knowledge of all security features as the banknotes are constantly upgraded with state of the art security features to stay ahead of counterfeiters.

Are commercial banks equipped to identify the security features on the naira notes?
Yes, commercial banks use technologies like ultra violet light, microscopic lenses etc. to distinguish between genuine and counterfeit notes.

 

[Adewale Stock]

Banks are perhaps the biggest winners of the Central Bank of Nigeria (CBN)’s move on Tuesday to hike interest rates for the first time since 2016.

With the CBN raising interest rates by 150 basis points to 13 percent to combat accelerating inflation, the yield on government securities, which banks hold a good chunk of, is expected to rise, increasing their profitability and boosting investor sentiment towards their stocks.

“Banks are in the money with this decision,” said Omotola Abimbola, an analyst at Lagos-based investment bank, Chapel Hill Denham.



“Their stocks are expected to rise as the CBN looks set to begin the process of interest rate normalisation,” Abimbola said.

Banks have seen a subdued financial performance since last year due to the low interest rate environment which curbed their profitability. That has dampened investor sentiment towards bank stocks, causing them to underperform the market.

While Nigerian stocks have emerged the best performers in Africa this year with a return of 24 percent since the beginning of 2022, bank stocks have only managed a 6.17 percent return in the same period, nearly four times less than the average return of the market.