Presented to the Nigerian Universities Accounting Students Association (NUASA) during Educational Tour to CBN Sokoto
Branch on July 20, 2016.
ORGANISATIONAL AND OPERATIONAL STRUCTURE
OF THE CENTRAL BANK OF NIGERIA
Baba N. Ya’aba Central Bank of Nigeria
Sokoto Branch
Introduction
Branch Operations Department
CBN Sokoto Branch
Leaving Above-board: CBN Accounting Framework
Next Line of Reasoning
Concluding Remark
Outline of the Presentation
Introduction
A draft legislation for the establishment of CBN was signed in
March 1958 but the implementation of the Act began in July
1, 1959 when CBN became fully operational.
The CBN Act of 1958 was at various times amended - 1991,
1993,1997,1998,1999 and 2007.
The CBN Act of 2007 is the latest legal framework with which
CBN derives her power.
History of Central Bank of Nigeria
The statutory mandates of the CBN in line with the provisions
of the CBN Act of 2007 are:
E
nsure monetary and price stability;
Issue legal tender currency in Nigeria;
Maintain external reserves to safeguard the international
value of the legal tender currency;
Promote a sound financial system in Nigeria; and
Act as Banker and provide economic and financial advice to
the FGN.
Mission
“To be proactive in providing a stable framework for the economic
development of Nigeria, through effective, efficient, and transparent
implementation of monetary and exchange rate policy, and management of
the financial sector.”
Vision
“be the model central bank delivering price and financial system stability
and promoting sustainable economic development.”
Core Values
Meritocracy
Leadership
Learning
Customer Focus
Mission, Vision & Core Values
The Branch Operations Department
The Branch Operations Dep’t is saddled with two major
responsibilities:
a)
Management of branch operations nation-wide; and
b)
Management of customer relationship
There are thirty seven branches of the CBN including Abuja. The Corporate Headquarters of the Bank is also located in Abuja.
CBN
–
Sokoto Branch
The branch is headed by a Branch Controller in person of
ALHAJI MUHAMMAD LAWAL IDRIS
It is divided into various offices. Prominent among which are:
a) Branch Controller’s Office b) Branch Support Office
c) Currency Management Office
d) Information Technology Support Office e) Facility Management Office
f) Development Finance Office g) Security Office
h) Statistics Office
Leaving Above-board: CBN Accounting Framework
The national accounting, although not completely jettisoned, the framework has been adapted to IFRS
The Bank has adopted Basel II Accord and making frantic effort to migrate to Basel III
The CBN minimum CAR requirement is above the international convention
– 15.0 per cent for banks with international authorisation and Systemically Important Banks (SIBs) and 10.0 per cent for other banks as against 8.0
per cent provided for by the BCBS.
Tier 2 capital is limited to 33.3 per cent of Tier 1 after making deductions for goodwill, deferred tax asset (DTA) and other intangible assets but before
deductions of investments. This is to ensure that the capital held by each bank is
commensurate with the bank’s overall risk profile.
Adopted the Financial Soundness Indicators (FSIs) of the IMF and it is
the only country that report FSIs on quarterly basis.
Introduce a Single obligor limit of 20% of
the bank’s
shareholders fund
unimpaired by losses.
Introduction of Credit Risk Management System (CRMS) Database and
urges all banks to provide evidence that a search has been conducted
on the borrower in the
CBN’s before granting of facility.
Introduction of Nigerian Uniform Bank Account Number (NUBAN) and
Bank Verification Number (BVN).
Next Line of Reasoning
All loans irrespective of whether they are short- or long-term should be accorded the same loan loss provisioning standards.
Loans that are due but not paid after 90 days attract 25.0 per cent provisioning, 50.0 per cent for 180 days, and 100.0 per cent for 360 days.
Small and Medium Enterprises (SMEs) and Agricultural Financing (both short- term) will now attract provisioning of 25.0 per cent if such facilities fall between 90 days to one year; 50.0 per cent for one year to one and half years; 75.0 per cent for one and half years to two years and 100.0 per cent for facilities above two years.
Banks desirous of lending to SME and Agricultural Financing for long-term
would have to make provisions of 50.0 per cent for within one year facility; 75.0 per cent for 2-3 years; and 100.0 per cent above 3 years.
