Nigeria: Revised legislation governing banks and financial institutions

Legislation in Nigeria affects the rules governing banks and financial institutions

Legislation in Nigeria affects the rules governing banks and financial institutions

Legislation in Nigeria affects the rules governing banks and financial institutions.

The legislation was enacted in November 2020 when the amended “Banks and Other Financial Institutions Act, 2020” was signed into law.

The 2020 legislation repeals the law that was originally enacted in 1991 (and subsequently amended several times) and covers more ground than the legislative predecessor with an expansion of the Central Bank of Nigeria’s regulatory oversight and discretionary powers over the financial services industry.

Other significant changes include measures for managing failing banks and a new tribunal for the enforcement and recovery of bad bank loans.

There are certain tax-related measures in the legislation (such as allowance of a tax deduction for amounts contributed to a resolution fund).

Read an April 2021 report prepared by the KPMG member firm in Nigeria 

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