UNIVERSITY OF BENIN, BENIN CITY.

FACULTY OF MANAGEMENT SCIENCE

DEPARTMENT OF BANKING AND FINANCE

PRESENTATION ON:
THE SUPPORTIVE FRAMEWORK FOR BANK REGULATION AND
SUPERVISION IN NIGERIA.

MSc FINANCE
2021/2022 SESSION

REG NO: pg2021_572942

COURSE CODE: FIN 815

COURSE TITLE: REGULATION OF FINANCIAL INSTITUTION

BY: AGHA-AIGUOKHIAN SACHEAL OGBE

SUBMITTED TO: DR. J. OBAYAGBONA

MAY, 2023.
Financial regulatory bodies are empowered by Acts and charged with the supervision and
regulation of financial institutions to certain regulations， constraints， and guidelines geared
towards the maintenance of the integrity and stability of the system. These regulating bodies
thrive to maintain confidence and enhancement the stability of the financial system.
Furthermore， consumers of the services of financial institutions are protected by these
financial regulatory bodies by maintaining an appropriate degree of consumer protection.

This is a list of financial regulatory bodies in Nigeria:

THE CENTRAL BANK OF NIGERIA

The Central Bank of Nigeria (CBN) as we all know, is the highest regulatory authority of the
financial system in Nigeria. The nation’s apex bank was founded by the Central Bank of Nigeria
Act of 1958 and it commenced operations the following year on July 1, 1959. The CBN is
saddled with many responsibilities as touching the country’s financial sector, some of which
include promoting monetary stability and a sound financial system in Nigeria, being the banker
and financial advisor to the Federal Government, as well as being the banker of last resort to
the every other bank in the country, especially the commercial banks. The CBN also allows for
the growth and development of financial institutions. Enabling laws made in 1991, gave the
CBN more flexibility in regulating and overseeing the banking sector and licensing finance
companies which previously operated outside any regulatory framework.

SECURITIES AND EXCHANGE COMMISSION (SEC)

The Securities and Exchange Commission (SEC), Nigeria is the apex regulatory institution of the
Nigerian capital market supervised by the Federal Ministry of Finance. The main function of the
Securities and Exchange Commission (SEC) is to regulate the investment and securities business
in Nigeria, maintaining surveillance over it with the mandate of ensuring orderly and equitable
dealings in securities, and protecting the Nigerian Stock Market against insider trading abuses.
NIGERIAN STOCK EXCHANGE COMMISSION(NSE)

Originally existed as Lagos Stock Exchange from September 15， 1960， but assumed the
name of Nigerian Stock Exchange in 1977. The Nigerian Stock Exchange provides financial
regulator functions in terms of inducement of foreign investment into the country by providing
foreign brokers of any nationality the opportunity to enlist as brokers on the Nigerian Stock
Exchange (NSE). Also， the commission promotes transparency and trust in the capital market.

FINANCIAL REPORTING COUNCIL OF NIGERIA (FRC)

The Financial Reporting Council (FRC) of Nigeria is a federal government agency that was
established by the Financial Reporting Council of Nigeria Act, No. 6, 2011. It is a federal
government Parastatal under the supervision of the Federal Ministry of Industry, Trade and
Investment. The FRC is responsible for, among other things, developing and publishing
accounting and financial reporting standards to be observed in the preparation of financial
statements of public entities in Nigeria and for related matters.

NIGERIAN DEPOSIT INSURANCE CORPORATION (NDIC)

The Nigerian Deposit Insurance Corporation (NDIC), is a financial regulatory body in the country
that compliments the regulatory and supervisory role of the Central Bank of Nigeria (CBN). That
said, the NDIC is independent of the CBN and reports to Federal Ministry of Finance. The NDIC
was established in the year 1989 and it was set up to provide deposit insurance and related
services for banks in order to promote confidence in the banking industry. This federal
government agency is empowered to examine the books and affairs of insured banks and other
deposit-taking financial institutions.
MONETARY POLICY COMMITTEE (MPC)

Established by the Central Bank of Nigeria to foster and facilitate the accomplishment of price
stability in the economy. The evaluation of economic and monetary conditions in the economy
and the determination of the degree of daily liquidity through the Nigerian apex bank， as well
as designing strategies to close the liquidity gap， are among the functions of the MPC. The
Monetary Policy Committee is responsible for communicating policy decisions relating to
finance to the public to assure the credibility of the transmission mechanisms of monetary
policy.

FEDERAL MORTGAGE BANK OF NIGERIA (FMBN)

The Federal Mortgage Bank of Nigeria (FMBN) took over the assets and liabilities of the
Nigerian Building Society. This top financial regulatory body in Nigeria provides banking and
advisory services, and undertakes research activities pertaining to housing all over the
federation. Following the adoption of the National Housing Policy in 1990, The FMBN is
empowered to licence and regulate primary mortgage institutions in Nigeria and act as the apex
regulatory body for the mortgage finance industry. The financing function of the Federal
Mortgage Bank of Nigeria was carved out and transferred to the Federal Mortgage Finance,
while the FMBN retains its regulatory role. The Federal Mortgage Bank of Nigeria (FMBN) is
under the control of the CBN.

FEDERAL INLAND REVENUE SERVICE (FIRS)

The Federal Inland Revenue Service (FIRS) is the top financial regulatory agency in Nigeria that
is charged with the responsibility of assessing, collecting and accounting for tax and other
revenues accruing to the Federal Government of Nigeria. The FIRS in simple terms, is
responsible for collecting taxes from individual businesses as well as corporate bodies on behalf
of the federal government. It is also their responsibility to eradicate of tax-related offenses by
enforcing adherence in accordance with tax laws.

FINANCIAL SERVICES REGULATION COORDINATING COMMITTEE (FSRCC)

The Financial Services Regulation Coordinating Committee (FSRCC) is an inter-agency body set-
up to deal with matters of common interest and concern to the various regulatory and
supervisory authorities in the financial services industry in Nigeria.

NATIONAL INSURANCE COMMISSION (NAICOM)

The National Insurance Commission (NAICOM) regulates the practices and operations
of Insurance companies in Nigeria. The National Insurance Commission (NAICOM) was
established in 1997 by the National Insurance Commission Act 1997 with responsibility for
ensuring the effective administration, supervision, regulation and control of insurance business
in Nigeria and protection of insurance policyholders, beneficiaries and other stakeholders in the
insurance sector in the country.

NATIONAL PENSION COMMISSION (PENCOM)

The National Pension Commission (PENCOM) is the last but not the least financial regulatory
body in Nigeria. This federal government agency is charged with the responsibility of regulating
the activities of all pension companies in Nigeria that are responsible for managing the pension
funds of working class men and women in the country with the aim of providing a steady
income stream for them when they eventually retire. PENCOM is empowered by the Pension
Reform Act which is a set of rules and codes that promote elevated ethical standards among
the various institutions that operate in this line of business.