:: Central Bank of Nigeria : Monetary Policy Mandate

MPC Mandate

The legal backing for monetary policy by the Bank derives from the various statutes of the bank such as the Central Bank of Nigeria Act of 1958 as amended in CBN Decree No. 24 of 1991, CBN Decree 1993 (Amendment), CBN Decree No. 3 of 1997 (Amendment), CBN Decree No. 4 of 1997 (Amendment), CBN Decree No. 37 of 1998 (Amendment), CBN Decree No. 38 of 1998 (Amendment) and CBN Decree 1999 (Amendment) .

The conduct of Monetary Policy in Nigeria and all activities of the Central Bank of Nigeria relate with the core mandate of the bank and therefore are best understood from this perspective. Consequently, in pursuance of its functions in compliance with the core mandate, the CBN undertakes monetary policy in order to:

Maintain Nigeria’s external reserves to safeguard the international value of the legal currency.

Promote and maintenance of monetary stability and a sound and efficient financial system in Nigeria.

Act as banker and financial adviser to the Federal Government; and

Act as lender of last resort to banks.

Facts : 1/1/1995

National Clearing System Re-Visited:In January 1995, a revised clearing rule became operational to facilitate effective clearing of financial instruments and shorten the period of clearing. Consequently, inter-state cheque clearing time was reduced from 21 days to 15 days, while intra-state clearing has been reduced from 12 days to 9 days.

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