The updated act for the banking and financial sector in Nigeria
The Banks and Other Financial Institutions Act 2020 (BOFIA) assented on November 13 by President Buhari would explicitly expand the jurisdiction of the Central Bank of Nigeria, CBN.
The CBN who solely administers monetary policy and control money supply has also acquired new roles to revoke licenses of policy breakers.
Along with an existing mandate to maintain low inflation and stable GDP growth, BOFIA 2020 authorizes the CBN to shut down bank branches for lapses.
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BOFIA Act for Banking and Financial Institutions in Nigeria
BOFIA 2020 closes the gaps in the Banks and Other Financial Institutions Act Cap B3 Laws. It enables weakening financial institutions with instruments that will help maintain monetary stability.
The credit tribunal established by BOFIA 2020 will facilitate bank credit but could make it difficult for the Asset Management Corporation of Nigeria (AMCON) to carry out its functions in debt recovery.
The gaps within the regulations and sanctioning of banks for oversight are covered by the new act which also says the extent of sanctioning.
Banks will not just get a fine for non-compliance, there will be imprisonment of up to 5 years. BOFIA 2020 also hikes the fines by millions for all kinds of policy infringement entitled to a fine.
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With regards to bank customers, BOFIA 2020 will develop the financial sector from what it was the last 20 years.
The Senior Special Assistant to the President, Garba Shehu, signed BOFIA 2020.
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