Overview

The Central Bank of Nigeria Act, 2007 (Act No. 7) is a comprehensive legislation that establishes the Central Bank of Nigeria (CBN) as a body corporate with perpetual succession, sets out its objectives, governance structure, and operational framework. Key provisions include: establishment of the Bank with an initial capital of N100 billion (Section 4), appointment of a Governor and four Deputy Governors by the President (Section 8), establishment of a Monetary Policy Committee (MPC) to formulate monetary policy (Section 12), sole right to issue legal tender currency (Section 15-20), maintenance of external reserves to protect the Naira (Section 24-25), and authority to conduct banking, treasury, credit, and developmental operations (Sections 27-31). The Act also prohibits certain activities like direct equity investments (Section 34), requires publication of the monetary policy rate (Section 35), and allows advances to the Federal Government up to 15% of previous year's revenue (Section 38). It establishes a Financial Services Regulation Co-ordinating Committee (Section 43) and empowers the Bank to regulate credit bureaux (Section 57). The Act repeals the 1991 CBN Act and takes effect from 25 May 2007.

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