Buhari Assents Banks And Other Financial Institutions Act 2020
President Muhammadu Buhari has signed the Banks and Other Financial Institutions Act 2020, a legislation that will improve the resilience of Nigerian financial system.
The Presidency disclosed on Friday in a monitored tweet that he made the approval on Thursday.
Advertisement
“This monumental piece of legislation is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy,” the Senior Special Assistant to the President, Garba Shehu, said in a separate statement on Friday.
Buhari in the tweet noted the BOFI Act repeals the extant Banks and Other Financial Institutions Act 1991 as amended.
He said, “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 new law updates the enabling law in response to developments and significant evolution in the financial sector over the last two decades.
Advertisement
The Presidency said the law will increase the appetite of banks and other financial institutions to channel much-needed credit to the real sector to support economic recovery and promote sustainable growth.
The BOFI Act prohibits financial organisations from operating in Nigeria if they are not licensed by the regulators.
The Act also empowers a tribunal for the enforcement and recovery of eligible loans and the fast resolution of loan related cases.
TWEET
