Section 46: Prohibition against CBN in its relation with Government agencies and parastatals.

(1) The Central Bank of Nigeria in its relations with Government agencies and parastatals shall be subject to the following prohibitions :
(a) purchasing fresh issues of government securities on the date of its primary issue in the market, except in the circumstances under subsection (2) of this section;
(b) exchanging on a temporary basis, the debt securities of any Government in the Federation for federal public debt securities and forward purchase or sale of such securities when the final result is similar to an exchange ; or
(c) granting guarantees on behalf of any Government in the Federation.
(2) The Central Bank of Nigeria may only underwrite securities issued by the Federal Government, which are rolled-over to refinance maturing securities.
(3) The underwriting permitted under subsection (2) of this section shall be offset through a public auction at market-determined rate.