His Excellency, President Muhammadu Buhari GCFR, on 13 November 2020 signed the amended Banks and Other Financial Institutions Act, 2020 (“BOFIA 2020” or “the Act”) into law. The Act repeals the erstwhile BOFIA 2004 which was originally enacted in 1991 and amended in 1997, 1998, 1999 and 2002. According to a statement from the Presidency, BOFIA 2020 will strengthen the “…regulatory and supervisory framework for the financial industry”.
The Act covers more ground than its 2004 predecessor with an expansion of the Central Bank of Nigeria (CBN)’s regulatory oversight and discretionary powers over the financial services industry. Other significant changes introduced by the Act include measures for managing failing banks and a new tribunal for the enforcement and recovery of bad bank loans. Overall, BOFIA 2020 seeks to promote a stronger, more transparent and efficient financial system in Nigeria.
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