President Muhammadu Buhari, has signed into law the new Banks and Other Financial Institutions Act (BOFIA 2020). The new law automatically annuls the existing Banks and Other Financial Institutions Act 1991 as-amended.
Announcing this on his official Twitter account today, President Buhari said that, “Yesterday, November 12, 2020, I assented to the Banks and Other Financial Institutions Act 2020, which repeals the extant Banks and Other Financial Institutions Act 1991 as-amended.
He further stated that, “The BOFI Act 2020 is a historic and significant achievement that will enhance the soundness and resilience of Nigeria’s financial system. It is also yet another indication of effective and productive collaboration between the Executive and Legislative arms of Government.”
The Banks and Other Financial Institutions Act 2020 (BOFI Act 2020) updates the enabling law in response to significant evolution in the financial sector over the last 2 decades.
The Presidency of Nigeria on its twitter handle explains that the new BOFIA “Will increase the appetite of banks & other financial institutions to channel much needed credit to the real sector to support economic recovery & growth”.
“Furthermore, it strengthens the regulatory and supervisory framework for the financial industry and provides additional tools for managing failing institutions and systemic distress to preserve financial stability amongst others.” It added.
The Presidency also added added that the Central Bank of Nigeria will hold structured engagements with stakeholders across various sectors of the economy on critical aspects of the Act in the coming months.