Document Type

Annual Report

Publication Title

Central Bank Nigeria Annual Report and Statement of Accounts.


The Report, as in the past, reviews the operations of the Central Bank of Nigeria in its efforts at discharging its mandate for the fiscal year 2001. The major objectives of monetary policy for 2001 were outlined in the Bank's Monetary Policy Circular No. 35, which aimed to maintain internal and external balance, contribute to sustainable output growth and poverty reduction, and focus on the banking system, rate, rate regime, viability, and stability. Key policy targets included growth in broad money, narrow money, aggregate bank credit, growth in bank credit to the government, private sector, inflation rate, and GDP growth. The Bank also provided guarantees for agricultural loans under the Agricultural Credit Guarantee Scheme (ACGS), supervised the recovery of outstanding balances on the Small and Medium Enterprises loan scheme (SME II), and launched the Small and Medium Industries Equity Investment Scheme (SMIEIS). The Bank also collaborated with other agencies in economic research and financial matters and improved the quality and dissemination of financial information in the economy. The Central Bank of Nigeria (CBN) implemented a flexible interest rate policy in 2001, gradually increasing the Minimum Rediscount Rate (MRR) to influence interest rate changes. The bank also focused on surveillance activities over banks and non-bank financial institutions, enhancing the efficiency of the payments and clearing system. The issuance of the N500 bank note in April 2001 and the encouragement of currency sorting machines by deposit money banks further strengthened the bank's policy. The bank also encouraged the use of e-money and automation of the clearing system. The external sector policy in 2001 aimed to maintain a stable exchange rate and achieve balance of payments viability. Measures included the retention of the IFEM, allowing oil and oil service companies to sell foreign exchange for domestic expenses to any bank, and the use of Form 'M' for import transactions. The bank also supported economic growth and development by fostering credit accessibility for farmers and small and medium-sized enterprises through agricultural credit guarantees, supervision of credit facilities, and the facilitation of the Small and Medium Industries Equity Investment Scheme.

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