The CBN Decrees & Acts of Nigeria (1991 - 2007)
August 31, 2007 | posted by Nigerian Muse (Archives)



 STAR INFORMATION: The CBN Decrees & Acts of Nigeria (1991 - 2007)
"That the World May Know"


 
AUGUST 28, 2007

 

Dear Compatriots:


The following can be regarded as the fountain of the CBN decrees and acts:

http://www.nigeria-law.org/CentralBankOfNigeriaDecree.htm
Central Bank of Nigeria Decree No 24 of 1991  (signed 20th June, 1991)


QUOTE

8. (1) The Governor shall keep the President informed of the monetary and banking policy pursued or intended to be pursued by the Bank.
(2) The President after due consideration may, in writing, direct the Bank as to the monetary and banking policy pursued or intended to be pursued and the directive shall be binding on the Board which shall forthwith take all steps necessary or expedient to give effect thereto...............................


19. (1) Currency notes and coins issued by the Bank shall be -
(a) in such denominations of the naira or fractions thereof as shall be approved by the President on the recommendation of the Board;
(b) of such forms and designs and bear such devices as shall be approved by the President on the recommendation of the Board.
(2) The standard weights and composition of coins issued by the Bank and the amount of remedy and variation shall be determined by the President on the recommendation of the Board.

20. (1) Currency notes issued by the Bank shall be legal tender in Nigeria at their face value for the payment of any amount.
(2) Coins issued by the Bank shall, if such coins have not been tampered with, be legal tender in Nigeria at their face value up to -
(a) an amount not exceeding forty naira in the case of coins of denomination of 10k or less;
(b) an amount not exceeding one hundred naira in the case of coins of denomination above 10k but not more than 50k;
(c) an amount not exceeding two hundred naira in the case of coins of denomination above 50k but not more than N1.
(3) Notwithstanding subsections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any notes of coins with respect to which a notice has been given under this subsection, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this Decree, shall be redeemed by the Bank upon demand.
(4) It shall be an offence punishable under the provisions of subsection (1) and (2) of section 1 of the Counterfeit (Special Provisions) Decree 1984 for any person to falsify, make or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria.

--- other materials deleted....

UNQUOTE




There have been three amendments

1.   Decree No. 79 of 1993, cited as the Central Bank of Nigeria (Amendment) Decree 1993 and made at Abuja on the 25th day of August 1993.
2.    Decree No 37 of 1998.
3.    Decree No 41 of 1999  (passed by Senate 02/02/05)


But there is a completely New CBN Act


CBN Act of 2007  [Signed into law May 25, 2007 by President Obasanjo]


[This section is retained WORD FOR WORD from the original 1991 Decree]:

19 (1)The currency notes and coins issued by the Bank shall be—
(a) in such denominations of the Naira or fractions thereof as shall  be approved by the President on recommendation of the Board; and
(b) of such forms and designs and bear such devices as shall be approved by the President on the recommendation of the Board.
(2) The standard weights and composition of coins issued by the Bank and the amount of remedy and variation shall be determined by the president on the recommendation of the Board. ........................


But NM could not find the full text of the CBN Act of 2007 anywhere - at least not on the www.nass.gov.ng site, eg.

    http://www.nass.gov.ng/index.php?option=com_docman&Itemid=55
    Papers and Downloads

or on the CBN website www.cenbank.org

But there are some references below for your reading pleasure.

Enjoy


NM



From the CBN


http://www.cenbank.org/out/publications/pressrelease/gov/2007/pr3-7-07.pdf

Highlights of the New Central Bank of Nigeria (CBN) Act, 2007

"The CBN proposed a number of measures for strengthening the CBN Acts. The Bill was deliberated upon by the Federal Executive Council and following their approval was forwarded to the National Assembly (NASS).The Act was thereafter assented to by the immediate past President."

"1. AUTONOMY OF THE BANK (SECTION 1)
The operational autonomy of the Bank
expressed in line with international best
not only facilitate the achievement of
also engender stakeholder confidence......

5. COMPOSITION OF THE BOARD { SECTION
The membership of the Board has been expanded
Accountant-General of the Federation.

6. APPOINTMENT AND QUALIFICATION OF THE MEMBERS OF THE
BOARD (SECTIONS 8, 10 & 11)
In order to facilitate the achievement of its mandate, the
appointment of the Governor, the Deputy Governors and nonexecutive
directors is now subject to confirmation by the Senate
while the removal of the Governor is also subject to Senate
confirmation.
The Governor is also required to appear before the National
Assembly periodically to present a report on the activities of the
Bank.....

13. FURNISHING OF ANNUAL ACCOUNTS AND RETURNS TO THE
NATIONAL ASSEMBLY {SECTION 50}
The Bank is now required to furnish the National Assembly with
its annual accounts and financial statements....."



Also see:

 

http://www.cenbank.org/OUT/SPEECHES/2007/Govadd14-5-07.pdf

Soludo Speaks on Obasanjo Legacy and the Challenge Ahead.

Prof Chukwuma C. Soludo, CFR, on the 10th of May 2007 spoke on the Obasanjo Legacy and the Challenge ahead at the Nigeria Development Forum. His paper titled "From a Pariah, Failed State to an Emerging Market Economy: The Obasanjo Legacy and the Challenge Ahead
 

----

And

 

http://www.cenbank.org/out/speeches/2006/Govadd%204-12-06.pdf 

New Framework for Monetary Policy Implementation In Nigeria

The Governor, Professor Chukwuma C. Soludo last Monday, December 4,2006 unveiled the new Monetary Policy Framework at a briefing attended by the Chief Executives of deposit money banks and Media Practictitioners.

Publication Date Fri, 8 Dec 2006
  


SOME NEWSPAPER SUMMARIES


THE NATION

New Act Empowers CBN To Regulate Operations Of Credit Agencies
 9th Jul 2007

The Central Bank of Nigeria (CBN) is now to licence and regulate activities of credit bureaux, going by provisions of the new CBN Act 2007.

Credit bureaux are new agencies being established to monitor credit worthiness of bank customers in the country. Their essence is to check incidence of loan defaults.

Under the new dispensation, banks are to exchange and share information on credit worthiness of customers seeking loans through these credit bureaux.

Although the Bankers' Committee had long played with the idea of establishing one credit bureau and had set up structures to facilitate its establishment, the committee was silent on the governance of its operations.

But with the enactment of new CBN Act 2007, more than one credit bureau can be established and all of them are to operate under the purview of the CBN.

So far, only one credit bureau, called Credit Reference Company, has been established in the country.

The company was formed by nine Nigerian banks in partnership with Accenture and the International Finance Corporation.

The new CBN Act 2007 gives express powers to the CBN to licence and regulate activities in these new organisations, saying that the appointment of CBN as the regulator was to enhance transparency in credit transactions in banks as well as enhance operations of the credit bureaux.

"This will enhance transparency in credit transactions of banks by making it mandatory for them to obtain credit information about prospective borrowers," it said.

The Act said that the apex bank had also been empowered to develop efficient and robust systems of transactions settlement including electronic payment, adding that this was in furtherance of the objective of promoting sound financial system in addition to facilitating cheque clearance.

It also empowered the apex bank to partner with regulatory agencies of banks in foreign countries on information exchange in relation to supervision of conglomerates and off-shore banks.

The Act provides for confidential treatment of shared information between the CBN and its foreign partners, saying that the assurance of confidentiality would make it easy for CBN to enlist co-operation of foreign supervisory authorities.

Operators have commended the decision of the government in bringing the operations of credit bureaux under strict supervision and said that it would help check abuses.

Mr. Mike Falade, a Lagos-based financial expert, commended the establishment of these agencies and said that their establishment would enhance the stability of the banking sector by putting an end to prevalent abuses in the system.
 



 

Senate Now to Ratify Appointment, Removal of CBN Gov

Lagos, Jun 27, 2007 (This Day/All Africa Global Media via COMTEX) --

All future appointments and removal of the Governor of the Central Bank of Nigeria (CBN) would have to be subjected to confirmation by the Senate.

According to the new CBN Act 2007, signed into law May 25, 2007 by former President Oludsegun Obasanjo, the appointment of deputy governors and non-executive directors for the apex bank would also go through Senate confirmation.

Also in the Act is a provision that anyone who marches, hawks, mutilates or sprays the nation's currency, the naira, during social occasions would be deemed to have committed an offense and shall be liable to six months imprisonment and or a fine of N50,000.

The new Act, exclusively obtained by THISDAY yesterday, was gazetted early this month. It also expressed the autonomy of the CBN, recognising it as an "independent" institution, with full financial independence, as well as in the execution of its mandate.

The Act, which repeals the CBN Act 1991, states in part: "The Governor and Deputy-Governors shall be persons of recognised financial experience and shall be appointed by the President subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment. He may, under the circumstances specified in the Act, be removed from office by the President, provided that removal is supported by two-thirds of the Senate".

"The Governor and Deputy Governors shall be appointed in the first instance for a term of five years and shall each be eligible for re-appointment for another term not exceeding five years. Provided that, of the first Deputy Governors to be so appointed, one shall in the first instance be appointed for three years and two shall in the first instance be appointed for four years," the Act reads in part.

On the appointment of the five directors of the apex bank, the new Act states that "the five Directors of the Bank shall be appointed by the President subject to confirmation by the Senate and in appointing the five external Directors of the Bank, the President shall have due regard to a fair representation of the financial, agricultural, industrial and commercial interests and the principle of Federal Character."

The new Act also spelt out punishment for anybody that refuses mutilated or refuses to accept the Naira.

"A person who refuses to accept the Naira as a means of payment is guilty of an offence and liable on conviction to a fine of N50,000 or 6 months imprisonment: Provided that the Bank shall have powers to prescribe the circumstances and conditions under which other currencies may be used as medium of exchange in Nigeria.

"A person shall, who tampers with a coin or note issued by the Bank, be guilty of an offence and shall on conviction be liable to imprisonment for a term not less than six months or to fine not less than N50,000 or both such fine and imprisonment.

"A coin or note shall be deemed to have been tampered with if the coin or note has been impaired, diminished or lightened otherwise than by fair wear and tear or has been defaced by stumping, engraving, mutilating, piercing, stapling, writing, tearing, soiling, squeezing or any other form of deliberate and willful abuse whether the coin or note has not been thereby diminished or lightened.

"For the avoidance of doubt, spraying of, dancing or matching on the Naira or any note issued by the Bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note, shall be punishable under Sub-section (1) of this section," the Act also reads.

Commenting on the independence of the CBN, the Act stated that, "In order to facilitate the achievement of its mandate under this Act and the Banks and Other Financial Institutions Act, and in line with the objective of promoting stability and continuity in economic management, the Bank shall be an independent body in the discharge of its functions. Subject to the limitations in this Act, the Bank may acquire, hold and dispose of movable and immovable property for the purpose of its functions."

The new Act, which now requires the CBN to furnish the National Assembly with its annual accounts and financial statements, also gives the banking watchdog greater flexibility in the selection of instruments and assets in which to invest the nation's external reserve.

The new Act also requires the CBN to ensure monetary and price stability and to act as economic and financial adviser to the Federal Government while it raised the apex bank's authorised capital from N300 million to N100 billion and extended membership of the board to include Accountant-General of the Federation.

Due to the various weaknesses of the CBN Act 1991 (with its various amendments), the Federal Executive Council deliberated on various amendments in three special sessions last year with a view to repealing the existing Act and re-enact a new law that would not only put the Bank in tune with international best practices but also strengthen its capacity to effectively and efficiently deliver on its core mandates.

Consequently, an extensively revised CBN Bill was sent to the National Assembly in late 2006, as well as the Bank and Other Financial Institutions Act (BOFIA).

After long delays and scrutiny, the National Assembly finally passed the CBN Act early last Month, and former President Obas-anjo assented to it and the Act was gazetted.


Copyright (C) 2007 PR Newswire. All rights reserved

News Provided by COMTEX


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