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Senate Passes Bill To Re-Enact BOFIA

The Senate has passed the bill to re-enact Banks and Other Financial Institutions Act (BOFIA) CAP B3 Laws of the Federation of Nigeria 2004 (Amendment), 2020.

The bill will give the Central Bank of Nigeria (CBN) the powers to the license, supervise and revoke licenses of financial institutions but will only become law if also passed by the House of Representatives and assented to by President Muhammdu Buhari.

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

Senate Passes Bill To Re-Enact BOFIA

Supported by the Nigeria Deposit Insurance Corporation (NDIC), the Chartered Institute of Bankers of Nigeria (CIBN) and other stakeholders, the CBN also pushed 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.

Wednesday’s passage of the Bill, after a clause by clause consideration by the Senate at its plenary, followed 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).

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