Central Bank of Nigeria

The Central Bank of Nigeria (CBN) was established by the Central Bank of Nigeria Act of 1958 and commenced operations on 1 July 1959.

The principal objectives of the bank as stipulated in the CBN Act of 1958 are as follow:

• The issuance of legal tender currency in Nigeria;
• To maintain the external reserve and value of the legal tender in order to safeguard the international value of the currency;
• To promote monetary stability and a sound financial system;
• They serve as the banker and financial adviser to the Federal Government;
• Bankers to other banks within Nigeria and abroad. 

To achieve the above objectives, CBN undertakes the following functions as stated in the Act. The basic functions performed by CBN can be broadly categorized into three:

• Traditional functions;
• Regulatory functions, and
• Developmental functions.