CENTRAL BANK OF NIGERIA ACT, 2007
Act · Finance
Policy date: 2007-01-01
An Act establishes the Central Bank of Nigeria as the monetary authority, granting it powers to regulate the financial system and maintain price stability. It targets the bank's management, all regulated financial institutions, and the federal government. This ensures a sound financial system and effective management of Nigeria's external reserves.
CENTRAL BANK OF NIGERIA ACT, 2007
What Is This Policy?
The principal legislation governing the Central Bank of Nigeria, establishing its mandate, independence, powers, and governance structure as Nigeria's monetary authority and financial system regulator.
Who Does It Target?
CBN management, board, and Governor All banks and financial institutions regulated by the CBN Federal Government and Ministry of Finance The Nigerian financial system and economy
What Does It Aim to Achieve?
Ensure price stability, maintain sound financial system, issue legal tender currency, act as banker to the Federal Government, and manage Nigeria's external reserves.
Key Features
CBN Independence: CBN has operational independence in pursuit of its price stability mandate. Monetary Policy: CBN sets monetary policy through the Monetary Policy Committee. Currency Issuance: CBN is the sole authority for issuing Nigerian naira notes and coins. Financial Stability: CBN regulates and supervises banks and financial institutions to maintain systemic stability.
Current Status
Rollout Stage: Active — CBN fully operational Coverage: Nigerian financial system and economy Beneficiaries: All Nigerians through price stability and financial system soundness Funding: CBN earns seigniorage and charges on financial system
How to Access
Banks and financial institutions comply with CBN regulations Members of the public may access CBN consumer protection services CBN publications and monetary policy decisions are publicly available Application method: Banking sector engagement: https://www.cbn.gov.ng. Consumer complaints: CBN Consumer Protection Department.
Important Terms
CBN Governor has security of tenure to protect operational independence CBN cannot directly finance the government deficit Foreign exchange policy is set by CBN in coordination with the Ministry of Finance
Impact & Metrics
CBN's interventions have supported financial inclusion with over 50 million Nigerians now having bank accounts, and kept inflation within manageable levels through monetary policy.
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
The Central Bank of Nigeria Act 2007 is the primary legislation governing the CBN. It derives constitutional authority from the 1999 Constitution (Second Schedule — Exclusive List on banking, currency, and foreign exchange). The Act operates alongside the Banks and Other Financial Institutions Act 2020 (BOFIA), the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, and aligns with IMF Articles of Agreement (Article IV consultations), the Basel Committee Core Principles, and the FATF standards.