The Duties and Obligations of the Governor of Central Bank of Nigeria to the Financial Institutions

THE DUTIES AND OBLIGATIONS OF THE GOVERNOR OF CENTRAL BANK OF NIGERIA TO THE FINANCIAL INSTITUTIONS

The governor of central bank of Nigeria has some duties in which he performs in order to meet the finance needs of other financial institutions which are as followings:

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1. the central bank of Nigeria’s governor ensures the promotion of monetary stability and sound financial structure in the economy. The governor always emphasizes on the promotion and static financial structures within the economy of the country and the other financial institutions in the annual biannual reports on monetary policy and evaluate financial sector policies.
2. The governor ensure the annual, biannual reports on monetary policy an evaluate financial sector policies.

• He monitors and control inflation nary growth of the government appraise and monitors GDP growth, interest rates, foreign reserves through the review of government budget.

1. The governor also ensure high standard of ethical values in the banking systems by excessive borrowing loans. And over spending.
2. The government also confirms the appointment of staff and directors of respective departments and the various functions in each of the respective department.
3. He also maintain financial statements, internal the overall interest of the economy to other various financial institution in the same context of the country.

• He also recommends and gives approval on licensing of commercial banks in the economy.
• The government ensures the high standard of ethical value in banking system by controlling excessive borrowing loans and over spending.

1. Lastly, he also safeguards the international value of Nigerians currency in order not to cause inflation to naira in the economy.

THE OBLIGATIONS OF THE GOVERNOR

The governor also has some obligations to carryout to ensure balance of payment to the financial institutions. The obligations which he observes are as follows:

1. The governors of central bank of Nigeria identify the objectives and targets. Most of the objectives and targets. Most of the objectives and banking policies are as follows:

Reducing pressure are as follows

a.           Reducing pressure on the external sector.

1. Promoting price stability
2. Stabilizing the naira exchange rate.
3. Stimulating economic growth.
   2. POLICY FORMATION – Monetary policy stimulated side by side with baking policy, relies on the techniques of financial programming which seeks to ensure some consistencies among the economic sectors. The monetary programmes starts with comprehensive review of recent economic performance, the current and anticipated problems.
   3. He ensure the promotion and implementation of fiscal and monetary policy of government. They motivate the laws order that must be obeyed by the government.
   4. He also advises the government on economic matters control and regulates legal tender.
   5. Implementation of budgets of economic growth and development to other financial institutions with the government.
   6. He ensures efficiency and effectiveness of the central bank of Nigeria roles is macro economic policy.
   7. He also ensure conceptual frame work of monetary and king system control such as:
4. Relevance and rational: despite the continuing debate on the transmission mechanism of money in the economy system, it is generally adhere that under normal circumstances , changes in the money stock would influence interest rates as well as without and prices in the short run.
   8. He controls techniques of the C.B.N governor. The control of monetary and banking system by the CBN is carried out in partnership with the federal government which has the overall authority over the system of transaction of monetary policy of the government and the financial institutions in the country or economy.
   9. Lastly, he ensures a promoting and rapid sustainable rate of economic development on the countries economy.

THE CONTROL OF THE GOVERNOR

The governor is the chief executive of the bank.  He is responsible for the day – to day running of bank,. He works with a committee known as the executive committee. It is next to two to the board of directors. This committee is responsible for the day to day administration of the central bank. It handles the actual formulation of key policies for the bank, but its decision on key issues are subject to further deliberation and consideration by the boards of directors. The governor of the central bank heads this committee. Its membership includes the five deputy governors responsible for the five key areas of the bank’s operation. These are general administration, domestic monetary and banking policy, domestic operations, management services, and internal operations.

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