Section 2: Functions.

(1) The principal functions of the Bank shall be to-
(a) provide equity capital and funds by way of loans to indigenous persons, institutions and organisations for medium and long term investments in industry and commerce at such rates and upon such terms as may be determined by the Board in accordance with the policy directed by the President;
(b) engage and participate in such other banking and commercial business as may be directed by the Minister.
(2) Without prejudice to the generality of the foregoing, the Bank shall in particular have power to-
(a) to engage in all aspects of merchant banking, particularly, confirmation of bills and financial obligations of third parties and acceptance and discounting of bills;
(b) underwrite such stocks, shares and debentures as are issued in furtherance of the policy of the Government;
(c) purchase and sell stocks and shares quoted on the Nigerian Stock Exchange;
(d) provide guarantees, including guarantees in respect of export credit and letters of credit issued by licensed banks;
(e) accept term deposits from the public, financial institutions, trust funds, the post office and such other bodies as the Board may direct; and
(f) to provide chequing facilities for its customers.
(3) Any liabilities of the Bank which may be incurred in connection with the exercise of its powers under subsection (2) (a) of this section shall be rediscountable with the Central Bank.