CBN stands for Central Bank of Nigeria. It is the central monetary authority responsible for regulating and controlling the monetary and financial system in Nigeria. The CBN was established in 1958 under the CBN Act and operates with the primary mandate of maintaining price stability, promoting sustainable economic growth, and fostering a stable financial system in Nigeria.
As the central bank, the CBN has various roles and functions. It formulates and implements monetary policies aimed at achieving price stability, controlling inflation rates, and maintaining a stable exchange rate. It also supervises and regulates financial institutions including commercial banks, microfinance banks, and other deposit-taking institutions to ensure their soundness and stability.
Furthermore, the CBN acts as the banker and financial advisor to the Nigerian government, managing public debt, and issuing and redeeming government securities. It holds and manages the country's external reserves and plays a pivotal role in managing the foreign exchange market.
In addition to its regulatory functions, the CBN also promotes financial inclusion and economic development by fostering the growth of microfinance institutions, implementing financial literacy programs, and providing consumer protection measures in the financial sector.
The CBN plays a critical role in maintaining Nigeria's economic stability and fostering sustainable economic growth by formulating and implementing sound monetary policies, regulating the financial system, and providing various financial services to the government and the public.
