Central Bank of Nigeria Decree

Decree No 24 of 1991
Laws of the Federation of Nigeria 20th June 1991 The Federal Military government hereby decrees as follows: -

Part 1 Establishment and general provision relating to the Central Bank of Nigeria 1. a.There shall continue to be for Nigeria a body known as the Central Bank of Nigeria (hereafter in this Decree referred to as "the Bank"). b. The Bank shall continue to be a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name. c. Subject to the limitations in this decree, the Bank may acquire, hold and dispose of movable and immovable property for the purpose of its functions. 2. The principal objects of the Bank shall be to (a) issue legal tender currency in Nigeria; (b) maintain external reserves to safeguard the international value of the legal tender currency; (c) promote monetary stability and a sound financial systems in Nigeria; and (d) act as banker and financial adviser to the Federal Government. 3. The Bank shall have its head office in any location which is by law the capital of the Federal Republic of Nigeria, and may open branches in any part of Nigeria and appoint agents and correspondents abroad in accordance with the decisions of the Board.

Part II Capital and Reserve.

1 a. The authorised capital of the Bank shall be three hundred million naira. b. All the capital of the Bank shall be subscribed and held only by the Federal Government. 2 The Bank shall a in respect of each financial year, determine its operating surplus which shall be the remaining sum from its income and other receipts after meeting all current expenditures; b as approved by the Board for that year, make provision for the contribution to staff superannuation fund and for any other purpose specifically approved by the President. c The Bank shall establish a general reserve fund and shall allocate thereto at the end of each financial year one-sixth of its operating surplus for the year. d The balance of the operating surplus shall be paid to the Federal Government halfyearly.

Part III Administration

1 (1) There shall be for the Bank, a Board of Directors (hereafter in this Decree referred to as "the Board") which shall be responsible for the policy and general administration of the affairs and business of the Bank. (2) The Board shall consist of a Governor, five Deputy Governors and five Directors. 2. (1) The Governor or in his absence of the Deputy Governors nominated by him, shall be in charge of the day-to day management of the Bank and shall be answerable to the Board for his acts and decisions. (2) The provisions of subsection (1) of section 6 of this Decree shall apply in relation to the general policy pursued or intended to be pursued on any administrative matters, including staff pensions, salaries, allowances and any other similar matters.

3. (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. 4. (1) The Governor and Deputy Governors shall be persons of recognised financial experience and shall be appointed by the President by instrument under the public seal and on such terms and conditions as may be set out in their respective letters of appointment. (2) 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 5 years. (3) Notwithstanding subsection (1) or (2) of this section, the President may extend the tenure of office of the Governor, any Deputy Governor or any other Director of the Bank whose term of office has expired until a successor to such Governor, Deputy Governor or Director is appointed. 5. The Governor and the Deputy Governors shall devote the whole of their time to the service of the Bank and while holding office shall not occupy any other office or employment whether remunerated or not: Provided that the Governor or any of the Deputy Governors may by virtue of his office be appointed with the approval of the Board to (a) act as member of any commission established by the Federal Government to enquire into any matter affecting currency or banking in Nigeria; (b) become Governor, Director or member of the Board or by whatever name called, of any international bank r international monetary institution to which the Federal Government shall have interest or given support or approval; (c) become Director of any corporation in Nigeria in which the Bank may participate under paragraph (i) of subsection (1) of section 27 of this Decree. 6. (1) The five Directors of the Bank shall be appointed by the President. (2) A Director appointed pursuant to this section shall be a person of recognised standing and experience in financial or banking affairs, but whilst a Director of the

Bank, he shall not be regarded or act as a delegate on the board of any Federal, State or Local Government or of any commercial, financial, agricultural, industrial, or other interest with which he may have been connected before his appointment as a Director of the Bank. (3) A Director appointed pursuant to this section shall (a) hold office for three years and shall be eligible for re-appointment for another term of three years only; (b) be entitled to such fees and allowances as may be prescribed by rules made in that behalf by the Board and approved by the President. 7. (1) No person shall be appointed or shall remain Governor, Deputy Governor or Director of the Bank if he is (a) a member of any Federal or State legislative house; (b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Decree 1991. (2) The Governor, any Deputy Governor or any Director shall cease to hold office in the Bank if he (a) becomes of unsound mind or, owing to ill health, is incapable of carrying out his duties; (b) is convicted of any offence involving dishonesty or any other offence the maximum penalty of which exceeds imprisonment for six months; (c) is guilty of a serious misconduct in relation to his duties under this Decree; (d) is disqualified or suspended from practising his profession in Nigeria by order of a competent authority made in respect of him personally; (e) becomes bankrupt or suspends payments or compounds with his creditors. (3) The Governor or any Deputy Governor may resign his office by giving at least three months notice in writing to the President of his intention to do so; and any Director may similarly resign by giving at least one month's notice in writing to the President of his intention to do so. (4) If the Governor, any Deputy Governor or any Director of the Bank dies, resigns or otherwise vacates his office before the expiry of the term for which he has been

appointed, there shall be appointed a fit and proper person to take his place on the Board for the unexpired period of the term of appointment in the first instance (a) if the vacancy is that of the Governor or a Deputy Governor, the appointment shall be made in the manner prescribed by section 9(1) of this Decree; and (b) if the vacancy is that of any Director, the appointment shall be made in the manner prescribed by section 11(1) of this Decree. 8. (1) Meetings of the Board shall take place as often as may be required, but not less than six times in every financial year of the Bank. (2) The Governor shall preside at every meeting of the Board and in his absence, a Deputy Governor designated by him shall preside at such meeting. (3) Five members of the Board, two of whom shall be Directors other than the Governor or the Deputy Governors, shall form a quorum at any meeting. (4) Unless otherwise provided in this Decree, decisions shall be a simple majority of the votes of the members present, but in case of any equality of votes, the person presiding shall have a casting vote. 9. (1) Appointment of employees of the Bank shall only be to positions created by decisions of the Board and on such terms and conditions as may be laid down by the Board. (2) No salary, fee, wage, allowance or other remuneration paid by the Bank shall be computed by reference to the operating surplus of the Bank. (3) The salaries, fees, wages or other remuneration or allowances (including pensions and other retirement benefits) payable to or in respect of employees of the Bank, other than the Governor or Deputy Governors, shall be as stipulated, from time to time, by the Board.