THE DUTIES AND OBLIGATIONS OF THE GOVERNOR OF CENTRAL BANK OF NIGERIA TO THE FINANCIAL INSTITUTIONS
Governor of Central bank are set up to regulate and formulate policies that help to guide the financial institutions. It is the aim of this research work is to find out how the governor of Central Banks; duties and obligations are examined to the financial institutions. This research work has three chapters.
Chapter one contains a general discussion of the Central bank of Nigeria & other financial institutions as seen by different people. It went further to state how central bank came into existence such as the introduction.
In otherworld, chapter two talks about the duties and obligation of governor of central bank to the financial institution. And also talks about the decision and control of governor of central bank to financial institutions.
Finally, the last institution would put the recommendation made in this research, there will not only be satisfaction in the financial institution economy service offered, but a standard increase in a financial institutions to the nations’ economy.
TABLE OF CONTENT
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEMS
1.3 THE NEED OF THE STUDY
1.4 SCOPE AND LIMITATION OF THE STUDY
1.5 RESEARCH PROPOSITION
2.1 THE DUTIES OF THE GOVERNOR
2.2 THE OBLIGATIONS OF THE GOVERNOR
2.3 THE CONTROL OF THE GOVERNOR
3.1 SUMMARY OF FINDINGS
BACKGROUND TO THER STUDY
like case in many countries, commercial banking started in Nigeria long before the central bank was established where as the first commercial bank branch was established in Nigeria as far back as 1892, it was only in 1958 (66 years) after that the central bank of Nigeria was established by the bank of Nigeria act of 1958. it started full operations on 1st July 1959.
Prior to the establishment of the central bank of Nigeria, the role of a central bank was partially performed by the British government in 1912. this body was established to perform the primary role of issuing a West African currency in all the five countries that were British Colonies.
When British gained a higher control of Nigeria and some other West African Countries, the need for monetary control arose. In 1912, the colonial government set up a committee headed by Lord Emott from England, to study “ways and means of dealing two basic necessities. One was financing the needs of the export trade of the expatriate firms in West Africa (Nwankwo 1980:1).
Following the recommendation of lord Emott committee, the West African currency Board (WACB) was established in November 1912. It was charged with following three objectives:
a. To issue a West African currency.
b. To ensure a speed convertibility of his currency with the old sliver currency before it and
c. To provide a means whereby the colonial governments share in the profits of the currency issue.
As Nigeria moved towards independence, the nationalist began to agitate for the establishment of a central bank because the West African currency board had many short coming.
These short coming are as follows:
a. The WACB could not engage in management as a full fledge central bank. In could not make its own monetary policy, and even the currency it issued is directly tied to the British pound for instance, when it receive one British pound. It issues one West African pound.
b. The board failed to train Nigerians in the art managed by foreigners.
c. It failed to invest its reserves and profits in Nigeria since it was investing its reserves and profits in Nigeria since it was investing its reserve overseas.
In 1952 and 1957, the colonial government commissioned three separate groups to advise the government on what to do which are:
a. Fisher commissions of enquiry 1953
b. world bank (I.B.R.D) 1953 and lastly
c. J.B Loynes commission – 1957
It was finally, in 1st July, 1959 that the Central Bank of Nigeria opened its doors for business. It was on that day that the first time Nigeria currency was issued.
STATEMENT OF PROBLEMS
The central bank of Nigeria, an apex financial institution, charged with the responsibility of managing cost, volume, availability and direction of money and credit with a view achieving some economic objectives by the governor exposed to some problems from other financial institutions which includes
• Too frequent change in monetary policies
• Contradiction in the monetary and fiscal policy measures.
• Inability to deal with financial stress in the economy
• Inability to stabilize the exchange rate of the naira
• Inefficient clearing and payment system.
• Laxity in supervision of mutilated currency from circulation.
From the above statement of problems, the government or as a whole has to face this problem when his duties and obligation are carried out the normal ways. And also this problem create a big problem between the governor and other financial institution in Nigeria.
THE NEED OF THE STUDY
In the study of this perspective research on this topic I chose and I wish to write on will help us to know the various role and duties, the governor of Central Bank of Nigeria play in the banking sector in other to cause and enforce the monetary policy acquainted and well arranged in the economy. In other words. The central bank of Nigeria’s governor has so many roles to play as the duties and his function in economy in order to keep a record of the transactions between the commercial banking and the government because it is the duty of the governor of central bank of Nigeria to assess the currency. Whether it is durable, aquentable, carry able and portable within the reach of the country’s economy.
However, the governor of central bank of Nigeria must play the active role in order to cause things going, by influencing the board of directors to also be hardworking for the economy for effective development in the financial institutions.
It is the objective of this study to know if the governor of central bank of Nigeria act of 1958 and central bank of Nigeria No 24 of 1991 which repeated and replaced it, if the governor does the following:
• if he issues legal tender currency to the financial institutions.
• If the maintains external resources to safeguard the international value of the legal tender currency to the financial institutions.
• If he maintains external resources to safeguard the international value of the legal tender currency.
• If promotes monetary stability and sound financial system in Nigeria.
• To know if he acts as banker and financial adviser to the foregoing objectives, the governor of central Bank of Nigeria performs all the functions that a full fledged central bank performs in other countries of the world.
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