I want to know if CBN and NCC are now revenue generating agencies. According to the 11th paragraph of the president's speech that says "In addition to NNPC, I have ordered for a complete audit of our other revenue generating agencies mainly CBN, FIRS, Customs, NCC, for better service delivery to the nation."

yes dey generate some level of secondary revenue fr d govt in form of registrayion charge, fines frm banks nd telcom coy who default regulations nd all that.

d rev dey generate dou cant b compared to dat of FIRS nd NNPC

CBN is not a Revenue Generating Agency, because i voted for change YES IT IS

adedayourt:
yes dey generate some level of secondary revenue fr d govt in form of registrayion charge, fines frm banks nd telcom coy who default regulations nd all that.

d rev dey generate dou cant b compared to dat of FIRS nd NNPC

Some level you say, which might not be that significant. I was of the thought they are just a regulators.

My brother, regulatory bodies are now revenue generating agencies. With the way buhari is going, Nigeria's reverse gear will be in full engagement under his watch.

Baba please look up and ahead more.

tamunoibiso:

Some level you say, which might not be that significant. I was of the thought they are just a regulators.

PRIMARILY A REGULATOR

den dey get som income in form of fines wen d regulated default der regulations
.

read this link nd find out eeven d fine aint minute amount

http://pulse.ng/money/cbn-apex-bank-fines-5-banks-n312m-over-regulatory-violations-id3755236.html

The thing surprise me too oooo

tamunoibiso:
I want to know if CBN and NCC are now revenue generating agencies.
According to the 11th paragraph of the president's speech that says
"In addition to NNPC, I have ordered for a
complete audit of our other revenue generating agencies mainly CBN, FIRS,
Customs, NCC, for better service delivery
to the nation."

Are you kidding me? They are

tamunoibiso:
I want to know if CBN and NCC are now revenue generating agencies.
According to the 11th paragraph of the president's speech that says
"In addition to NNPC, I have ordered for a
complete audit of our other revenue generating agencies mainly CBN, FIRS,
Customs, NCC, for better service delivery
to the nation."

so you don't know CBN is also a revenue generating agency? Smh sha.......

I don't know of CBN bt NCC yeah becus dey work mainly wt private Telecom bodies. Since our National Carrier nitel has been taken down becus of poor service delivery & corruption.

Obiagelli:

Are you kidding me? They are

That's the more reason I asked, because to me they are regulators. They don't generate money the way NCS, FIRS, NNPC do.

In 2012, CBN was the highest revenue generating agency of the FG, even more than NNPC. Before you are quick to criticize, you may want to read the links below:

http://www.businessdayonline.com/NG/index.php/banking-a-finance/49040-cbn-tops-list-of-revenue-generation-for-2012

http://www.punchng.com/opinion/viewpoint/how-cbn-makes-its-money/

fistonati:
I don't know of CBN bt NCC yeah becus dey work mainly wt private Telecom bodies. Since our National Carrier nitel has been taken down becus of poor service delivery & corruption.

The main function of NCC is to regulate and monitor all the telecom industries in Nigeria, and place sanctions to anyone that breaches its laid down procedure.

The way folks glory in their ignorance on NL is a sorry picture of the future of Nigeria.

Its not compulsory you comment on every issue. Stick to issues on which you have at least a basic knowledge in. Do you know how much CBN charges banks for processing the cash they move to CBN vaults when their own vaults are full and beyond their insurance limits? Do you know CBN also charge other fees for being the bankers bank?

Do you know how much NCC makes from fines and other regulatory fees in the communications sector? Who even told you guys audit only has to do with finance?

May God deliver the youth of this country o

APC e-goats won't seize to amaze me, if NCC and CBN are revenue generating agencies, then we can also call inec, NBS, federal universities and Immigration revenue generating agencies too.

denko:
CBN is not a Revenue Generating Agency, because i voted for change YES IT IS

Voted for change indeed

Did you just call CBN an agency?

menabadoo:
APC e-goats won't seize to amaze me, if NCC and CBN are revenue generating agencies, then we can also call inec, NBS, federal universities and Immigration revenue generating agencies too.

You're actually the goat if you do not know CBN and NCC generate money from their regulatory operations. You're also in need of a proper education if you don't know audit is not always about finance

tamunoibiso:

That's the more reason I asked, because to me they are regulators. They don't generate money the way NCS, FIRS, NNPC do.

The Cbn apart from generating what you call small revenue, in the end controls govt revenue so there can't be through restructuring without it.
The NCC these days does more revenue generation the regulation these days.

I like open minded criticism, we all learn from it

Kastonkastroll:
so you don't know CBN is also a revenue generating agency? Smh sha.......

Why smh? Am just trying to know if they are no longer regulators.

tamunoibiso:
I want to know if CBN and NCC are now revenue generating agencies.
According to the 11th paragraph of the president's speech that says
"In addition to NNPC, I have ordered for a
complete audit of our other revenue generating agencies mainly CBN, FIRS,
Customs, NCC, for better service delivery
to the nation."

CBN is simply a bank owned by the FG and they generate massive revenue for the government. CBN generates revenue the same way in which commercial banks do. I'm sure this short report below will answer your question.
http://www.thenigerianvoice.com/news/103423/1/cbn-highest-revenue-generating-agency-accountant-g.html
http://www.businessdayonline.com/NG/index.php/banking-a-finance/49040-cbn-tops-list-of-revenue-generation-for-2012

As for NCC, that should be common sense, they regulate all telecoms companies and issue licenses which are paid for and renewed regularly.
http://www.thisdaylive.com/articles/ncc-targets-n54-4bn-revenue-in-2014/179112/

Obiagelli:

The Cbn apart from generating what you call small revenue, in the end controls govt revenue so there can't be through restructuring without it.
The NCC these days does more revenue generation the regulation these days.

I like open minded criticism, we all learn from it

Don't mind these juvenile delinquents pls. Of course CBN generates income. I know how much debit notes from CBN I adopted into my banks trial balance when I was in the banking sector

adedayourt:
yes dey generate some level of secondary revenue fr d govt in form of registration charge, fines frm banks nd telcom coy who default regulations nd all that.

d rev dey generate dou cant b compared to dat of FIRS nd NNPC

The CBN is not a revenue generator)( FOR GOVERNMENT). The CBN's assets are not available for government expenditure .
The CBN even makes profit but this does NOT accrue to the federation account.
CBN funds are fiscally neutral as far as government is concerned.

EmoBoy:
Did you just call CBN an agency?

The president says they are revenue generating agencies from his speech.

tamunoibiso:

The president says they are revenue generating agencies from his speech.

Excuse me, did Buhari specifically call CBN an agency?

FUNCTIONS OF CBN

The principle objectives of the bank as stipulated in the CBN Act of 1958 are as follows:

(i) The issuance of legal tender currency in Nigeria;

(ii) To maintain the external reserve and value of the legal tender in order to safeguard the international value of the currency.

(iii) To promote monetary stability and a sound financial

(iv) They serve as the banker and financial adviser to the federal government

(v) Bankers to other banks within Nigeria and abroad.


The basic functions performed by CBN can be broadly categorized into three:

(1) Traditional function;

(2) Regulatory functions, and

(3) Developmental functions.


TRADITIONAL FUNCTIONS OF THE CENTRAL BANK OF NIGERIA

(i) ISSUANCE AND DISTRIBUTION OF CURRENCY

It is the responsibility of the central bank of a country to issue and distribute the legal tender currency (notes and coins) of the country. This is one of the earliest and primary functions of central banks. In modern times the law of each country makes it mandatory for the central bank to serve as a bank of issue. In England, the currency and bank notes Act 1954 restricted the right to issue notes to the department of the bank of England, the same restriction is obtained in Nigeria. The central bank of Nigeria Decree No. 24 of 1991 section 17 specifically stated, “neither the federal government nor other person or authority shall issue currency notes, tokens payable to bearer on demand being documents or token which are likely to pass as legal tender”. It is important that the right to issue currency notes to harmonize in the central bank because it helps to ensure the homogeneity of the currency.

(ii) BANKER AND FINANCIAL ADVISER TO THE GOVERNMENT

The central bank keeps major accounts of the government and manages the account of government and its agencies. As a government bank it also ensure that money is available to finance the government budget deficits. It can do this through the issue of government debt instrument, and also granting of ways and means advance to the government. Meanwhile central bank of each country relates with the central bank of other countries to enhance international settlements of financial claims. It also represents the government in such international financial organistion like the international monetary fund, international bank for reconstruction and development, and bank of international settlement.

The keeping of accounts of the government at all levels also places the central banks at a voltage position to advise the government on financial matters. The central bank assists the government in the preparation of the national budget. The central bank also grants major loans to the government in period of crisis such as economic depression or war. It also advice the government on how and when to borrow.

(iii) BANKER TO THE OTHER BANKS AND FINANCIAL INSTITUTION

Central bank acts as the banker to the commercial banks. The central bank for a country keep banks’ account for commercial and merchant banks and other financial institutions operating within the country including foreign banks. They also maintain accounts for the central banks of other countries and for international financial institutions such as the bank for international settlement and the international monetary fund.

Under this function they maintain two types of accounts for deposit account for bank. The first is the statutory deposit account. These are those accounts that the law compels banks to maintain with the bank such as deposit to meet the minimum cash requirement. Second type of deposit is operational deposit. Banks keep enough money in their accounts with the central bank to enable them make inter-bank settlements. Such inter-bank settlements or in making payments to other banks for purchase of securities or foreign exchange transactions.

(iv) LENDER OF LAST RESORT

This function of central bank is an extension of its function as the banker’s bank. However, it is treated as a separate function because of its unique importance. This lender of last resort means that when a bank is faced with a shortage liquid fund, after it has tried all other sources of fund without success it can always apply to obtain loan from central bank as a lender of last resort.

The phase “lender of last resort” was popularized in 1873 by Walter Bagehot in his publication titled “Lombard Street” then Britain. Bagehot argued in his publication that the bank of England should be ready to lend and lend without stint (period) as a lender of last resort so as to rescuer the ailing banks.

Central bank normally performs this function be re-discounting of first class bills, through their discount window operation abilities. It can also decide to do this indirectly through the discount houses.

(v) CLEARING AND COLLECTION OF CHEQUES AND OTHER INSTRUMENT

In each country the central banks operates a clearing house. Cheques of commercial banks and other negotiable instrument are cleared (settled) through the clearing house. This function of the central bank also arose out of its function as the bank’s banks since all the banks operating within the system maintain operational deposit accounts at the central bank. It becomes convenient for inter-bank settlements to be made through mere book entries in the record books of the central banks. In early stage of banking history, inter-banks settlements were done directly between the banks, and it was too cumbersome and inconvenient. If for instance, there ate fifty commercial banks operating within a locality and several cheques are received by one bank. It will take that bank much time and money to go to all these banks one by one.

The central bank has come to make everything easy and simple. It has come to bridge the gap between banks by providing a clearing house where the entire bank’s come together on each working day. Each bank represents the cheque of other banks paid in by its customers to the payee (bank). Therefore, the clearing function has become a very important function of central bank.

2.4 THE ROLE OF CENTRAL BANK IN ECONOMIC DEVELOPMENT

Central bank plays very important role in the economic development of a country e.g. developing countries like Nigeria is by the paucity or inadequate supply of capital, central bank helps to provide the much needed capital required for industry development. They act as link between those who need capital and those willing to save and make the money available to investor.

Central bank provides large credit facilities and diver voluntary saving into productive channels. In addition, they offer technical advice to industrialists by way of feasibility studies to ensure that investments are made in the right direction.

Again, central bank finance foreign trade. They provide advance loan and credit facilities to importers, and exporters who do not have immediate cash to pay their creditors. The central bank plays special role in promoting stable economic growth. They act as a watch-dog of the economy making funds available to the government anticipation of revenue, helping to float development stock and managing public debts. It also controls excessive credit during time of inflation and expands credit during time of recession in order to maintain a stable domestic price levels. It is also guarantees that credit is extended to the agricultural sectors, contributes to the equity capital of development banks, and advices the government on policies related to economic development. The central banks also maintain the external value of the currency, negotiates for external loans for development purchases on behalf of the government.

The central banks control inflation. They control this by reducing the supply of money in economy. This can be done through reducing its lending rate to banks. (The bank rate). This will also make to reduce their own lending and discount rate thereby encouraging the Central Bank to stabilize economic development.

Alternatively, the Central Bank reduces the supply of money by selling securities in the open market. As the public and banks pay for such securities, money supply is reduced. This reduces inflation but creates unemployment.

So, to leave the supply of money uncontrolled will lead to inflation and create distortion in the economy. By controlling the supply of money, the Central Bank helps the government to achieve its economic goal which include:

Achievement of full employment or a reduction in the level of unemployment.
Maintenance of price level stability (or a reduction in rate of inflation)
To achieve economic growth.
Achievement of balance of payment equilibrium and exchange rate stability.

FOR MORE INFO
http://articlesng.com/central-bank-nigeria-objectives-functions/

tamunoibiso:

That's the more reason I asked, because to me they are regulators. They don't generate money the way NCS, FIRS, NNPC do.

Why not Google...

They are revenue Agencies but not major revenue earners for govt

theV0ice:


Don't mind these juvenile delinquents pls. Of course CBN generates income. I know how much debit notes from CBN I adopted into my banks trial balance when I was in the banking sector

True, i hope she sincerely wanted to learn from this thread

EmoBoy:

Excuse me, did Buhari specifically call CBN an agency?

Below is the 11th paragraph of President Buhari's speech
In addition to NNPC, I have ordered for a complete audit of our other revenue generating agencies mainly CBN, FIRS, Customs, NCC, for better service delivery to the nation. Prudent housekeeping is needed now more than ever in view of the sharp decline in world market oil prices. It is a challenge we have to face squarely. But what counts is not so much what accrues but how we manage our resources that is important. We have seen in the last few years how huge resources were mismanaged, squandered and wasted. The new APC government is embarking on a clean up, introducing prudence and probity in public financing.

tamunoibiso:

Why smh? Am just trying to know if they are no longer regulators.

Regulations of other financial institutions and monitoring the nation's economy are just the major jobs of the CBN, but the central bank also generates revenue for the nation by selling currencies of different kinds to mainstream banks, private sectors(persons), the CBN also receive fines and other incentives from financial institutions breaking one banking law or another... There are just many ways the CBN generates revenue for the nation which I don't have the time to mention.

Lol, even the NPF kinda generates revenue for the nation...

Bevista:
In 2012, CBN was the highest revenue generating agency of the FG, even more than NNPC. Before you are quick to criticize, you may want to read the links below:

http://www.businessdayonline.com/NG/index.php/banking-a-finance/49040-cbn-tops-list-of-revenue-generation-for-2012

http://www.punchng.com/opinion/viewpoint/how-cbn-makes-its-money/

The ediotic saTANoids are deliberately ignoring your post.