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:
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Central Bank of Nigeria (CBN)
Empowered by the Central Bank of Nigeria Act and the Bank and Other Financial Institution Act, to oversee the activities of banks and other financial institutions in Nigeria. As a financial regulatory body, the Central Bank of Nigeria controls and manipulates the national money supply to facilitate a sound financial system in the country. As a regulator of financial institutions such as banks, the Central Bank directs the Nigerian Deposit Insurance Corporation (NDIC) to step in when banks are falling to effect control. The Central Bank safeguards the international value of the Naira, ensures monetary and price stability, and also acts as a bank and financial advisor to the Federal Government of Nigeria.
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Security and Exchange Commission (SEC)
This is the main regulatory body that is in charge of the capital market under the supervisory oversight of the Federal Ministry of Finance. The Security and Exchange Commission maintains surveillance over the Nigerian Stock Exchange with the protection of the market against insider trading abuses and ensuring the orderly and equitable dealings in securities, are chief among the roles of the commission.
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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.
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Financial Reporting Council of Nigeria (FRCN)
Endowed with the authorization of the Financial Reporting Council of Nigeria Act of 2011 to perform several financial regulatory functions that include; investors and stakeholders interest protection by ensuring adherence to acceptable corporate practices in the public and private sectors of the Nigerian economy; development of accounting and financial precepts to guide the preparation of financial statements of public interest, as well as the review of financial statement and reports of financial corporations and entities. Also, the Financial Reporting Council of Nigeria acts as an advisor to the Federal Government on matters pertaining to accounting and financial standards.
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Nigerian Deposit Insurance Corporation (NDIC)
Essentially, this corporation was established by the Central Bank of Nigeria to ensure that the banking sector and other financial institutions are safe and sound by ensuring deposit liabilities of licensed banks and other financial establishments in Nigeria in the event of failure of these financial institutions.
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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.
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Federal Mortgage Bank of Nigeria (FMBN)
The Federal Mortgage Bank of Nigeria is essentially the apex mortgage bank in Nigeria charged with meeting the housing needs of the citizens of Nigeria. FMBN develops and establishes mortgage institutions to the reach of the citizens of Nigeria on federal, state, or local levels. It is also charged with the licensing of secondary mortgage institutions and ensures adherence to guidelines by engaging in monitoring and regulation of the mortgage industry.
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Federal Inland Revenue Service (FIRS)
The Federal Inland Revenue Service is accountable for all matters relating to tax and revenue appraisal and collection from individuals and corporate bodies that accrue to the Federal Government of Nigeria and associated agencies. The Federal Inland Revenue Service reviews administration on tax regimes for the objective of economic development and gathers information to put forward policies and practices best for better tax regime administration. Also, the FIRS is charged with the eradication of tax-related offenses by enforcement of adherence in accordance with tax laws. Issuance of identification to taxable individuals is yet another role of the FIRS.
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Financial Services Regulation Coordinating Committee(FSRCC)
Vested with power by the Central Bank of Nigeria, the Financial Services Regulation Coordinating Committee is charged with the commission to foster the regulatory and supervisory activities in the Nigerian financial sectors by handling matters of common problems and concerns to regulating and supervisory bodies.
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National Insurance Commission
Established as a statutory agency under the constitution of the country as with compliance with the Insurance Act of 2003 and the National Insurance Act of 1999, to regulate and supervise the activities of the Nigerian insurance sector. The National Insurance Commission approves rates for premiums as well as the rates of commissions in all categories of insurance business. The National Insurance Commission regulates transactions between the insurers and the insured in Nigeria and outside the country. Furthermore, the National Insurance Company advises the Federal Government of Nigeria on all insurance matters and also ensures that the insureds’ interests are protected.
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National Pension Commission (PENCOM)
The National Pension Commission is responsible for all sorts of establishments that manage the pension funds of able working men and women with the intention of providing a steady income stream at retirement. PENCOM carries out this responsibility by enforcement of codes, guidelines, and regulations directed in accordance with the Pension Reform Act. These sets of rules and codes promote elevated ethical standards among the institutions that engage in the business.