News

Senate passes BOFIA

Published

4 years ago

July 23, 2020

The Senate yesterday, passed the Banks and Other Financial Institutions Act (BOFIA) and gave the Central Bank of Nigeria (CBN) powers to license, supervise and revoke licenses of financial institutions.

However, for the BOFIA) CAP B3 Laws of the Federation of Nigeria 2004 (Amendment) Bill, 2020, passed by the Senate to become Law, it has to be similarly passed by the House of Representatives; after which the Reports will be harmonised and forwarded to the President for assent..

The CBN, in its presentation at the public hearing, pushed for a review of the framework for managing failing institutions, a restriction remedy for successful action against revocation of licences in line with international standards and the creation of a Credit Tribunal.

The CBN, was backed by the Nigeria Deposit Insurance Corporation (NDIC), the Chartered Institute of Bankers of Nigeria (CIBN) and other stakeholders.

The apex bank also made a case for enhancement of regulatory measures for single obligor limits, transfer of significant holdings and the strengthening of the sanctions regime to make it more deterrent.

Yesterday’s passage of the Bill, followed a clause by clause consideration by the Senate at its Plenary, followed by the public hearing by the Senate Committee on Banking, Insurance and Other Financial Institutions.

The Senate considered the opinions of stakeholders in the industry such as the Central Bank of Nigeria (CBN), the Federal Ministry of Finance, Body of Bank CEOs and the Nigeria Deposit Insurance Company (NDIC).

Others at the hearing were the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), the Chartered Institute of Bankers of Nigeria (CIBN), the Nigeria Labour Congress (NLC), the Financial Correspondents Association of Nigeria (FICAN), the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFE).