Banks and Other Financial Institutions Act [BOFIA] 2020

BOFIA 2020

EXPLANATORY NOTE

This Act, among other things, regulates banking and business of other financial institutions by prohibiting the carrying on of such businesses in Nigeria except under licence and by a company incorporated in Nigeria. Adequate provisions have been made regarding the proper regulation and supervision of such institutions by the Central Bank of Nigeria.

[Commencement. NOVEMBER 13, 2020]
ENACTED by the National Assembly of the Federal Republic of Nigeria as follows:

CHAPTER A- BANKS

(Section 1- 14) Part I – Licensing and Operation of Banks

Section 1 BOFIA 2020Functions, Powers and Duties of the Central Bank of Nigeria

Section 2 BOFIA 2020Banking Business

Section 3 BOFIA 2020Application for grant of Licence

Section 4 BOFIA 2020Investment and release of prescribed Minimum Share Capital

Section 5 BOFIA 2020Power to Revoke or vary conditions of Licence

Section 6 BOFIA 2020Opening and closing of branches

Section 7 BOFIA 2020Restructuring, reorganization, merger and disposal, etc. of Banks

Section 8 BOFIA 2020Operations of Foreign Banks in Nigeria and Offshore Banking

Section 9 BOFIA 2020Minimum paidup share capital of banks and compliance with the minimum paidup share capital requirement

Section 10 BOFIA 2020Shareholder’s Voting Rights to be Proportional to Shareholding

Section 11 BOFIA 2020Restriction of legal proceedings in respect of shares held in the name of another

Section 12 BOFIA 2020Revocation of Banking licence

Section 13 BOFIA 2020Minimum capital ratio

Section 14 BOFIA 2020Minimum holding of cash reserves, specified liquid assets, special deposits and stabilisation securities

(Section 15-22) Part II – Duties of Bank

Section 15 BOFIA 2020Maintenance of reserve fund

Section 16 BOFIA 2020Restriction of dividend

Section 17 BOFIA 2020Disclosure of interest by Directors, Managers and Officers

Section 18 BOFIA 2020Prohibition of interlocking directorship, etc.

Section 19 BOFIA 2020Restrictions on certain banking activities

Section 20 BOFIA 2020Acquisition of share in small and medium scale industries, etc.

Section 21 BOFIA 2020Restriction on operations of merchant banks

Section 22 BOFIA 2020Display of information

SEE ALSO  Section 34-42 BOFIA 2020

(Section 23-33) Part III – Book and Records of Account

Section 23 BOFIA 2020Proper books and records of account

Section 24 BOFIA 2020Returns by banks

Section 25 BOFIA 2020Publication of consolidated statements

Section 26 BOFIA 2020Publication of consolidated statements

Section 27 BOFIA 2020Contents and form of accounts

Section 28 BOFIA 2020Appointment, power and report of approved auditor

Section 29 BOFIA 2020Relationship with Specialised banks and finance houses

Section 30 BOFIA 2020Conduct Supervision and Competition

Section 31 BOFIA 2020Appointment of Directors with supervisory functions and other examiners

Section 32 BOFIA 2020Examination and report thereon

Section 33 BOFIA 2020Special Examination

(Section 34-42) Part IV – Failing Banks and Rescue Tools

Section 34 BOFIA 2020Intervention Powers in Failing Bank

Section 35 BOFIA 2020Application to the Federal High Court for winding up

Section 36 BOFIA 2020Cooperation, etc with Bank in Banking Crisis

Section 37 BOFIA 2020Bail-in of a Failing Bank, Specialised Bank or Other Financial Institution

Section 38 BOFIA 2020Bail–in Certificate

Section 39 BOFIA 2020Moratorium and regulations on Bail-In eligible instruments

Section 40 BOFIA 2020Termination of rights

Section 41 BOFIA 2020Asset separation tool

Section 42 BOFIA 2020Sale of business tool

(Section 43-48) Part V -General and Supplement

Section 43 BOFIA 2020Restriction on the use of certain names

Section 44 BOFIA 2020General restriction on advertisement

Section 45 BOFIA 2020Closure of bank during a strike, an epidemic or pandemic

Section 46 BOFIA 2020Prohibition of the receipt of commissions etc by staff of banks

Section 47 BOFIA 2020Disqualification and Exclusion of Certain Individuals from Management of Banks

Section 48 BOFIA 2020Offences by Companies, etc. and by servants and agents

(Section 49-56) – Part VI – Miscellaneous Matters

Section 49 BOFIA 2020Offences by Directors and Managers of banks

Section 50 BOFIA 2020Penalties for offences not otherwise provided for

Section 51 BOFIA 2020Protection against adverse claims

Section 52 BOFIA 2020Jurisdiction of the Federal High Court

Section 53 BOFIA 2020 Application of Companies and Allied Matters Act, etc.

Section 54 BOFIA 2020Netting

Section 55 BOFIA 2020Priority of deposit liabilities

Section 56 BOFIA 2020Power to make regulations

CHAPTER B — SPECIALISED BANKS AND OTHER FINANCIAL INSTITUTIONS

(Section 57-62) – Part VII— Establishment of Specialised Banks and Other Financial Institutions

Section 57 BOFIA 2020Prohibition of Unlicensed Financial Institutions

Section 58 BOFIA 2020Application for licence

Section 59 BOFIA 2020Failure to comply with conditions of licence, etc.

Section 60 BOFIA 2020Supervisory power of the Bank over other financial institutions and specialised banks

SEE ALSO  Section 74-84 BOFIA 2020

Section 61 BOFIA 2020Application of Chapter A

Section 62 BOFIA 2020Management and control of failing specialised banks and other financial institutions

CHAPTER C- GENERAL REGULATORY POWERS

(Section 63-73) Part VIII – Other Regulatory Powers of the Bank

Section 63 BOFIA 2020Risk-based capital requirements

Section 64 BOFIA 2020Consolidated supervision

Section 65 BOFIA 2020Competition

Section 66 BOFIA 2020Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT)

Section 67 BOFIA 2020Corporate governance and ethics

Section 68 BOFIA 2020Cybersecurity regulation by the Bank

Section 69 BOFIA 2020Standard for payment, settlement and clearance activities

Section 70 BOFIA 2020Designation of systemically important banks

Section 71 BOFIA 2020Restriction on operations of Agents of banks

Section 72 BOFIA 2020Unclaimed funds/ abandoned property

Section 73 BOFIA 2020Avoidance of pre-liquidation transfers

CHAPTER D- RESOLUTION FUND

(Section 74-94) Part IX- Resolution Fund and Resolution Tools

Section 74 BOFIA 2020Establishment of banking sector resolution fund

Section 75 BOFIA 2020Contribution by Bank

Section 76 BOFIA 2020Contribution by the Corporation

Section 77 BOFIA 2020Levy on banks, specialised banks and other financial institutions

Section 78 BOFIA 2020Purpose of the resolution fund

Section 79 BOFIA 2020Tax deductibility of annual levy and vested contributions

Section 80 BOFIA 2020Prohibition on payment of dividend and bonuses by defaulting eligible financial institution

Section 81 BOFIA 2020Establishment and composition of Board of Trustees

Section 82 BOFIA 2020Duties and responsibilities of Board of Trustees

Section 83 BOFIA 2020Tenure, cessation of membership, and casual vacancy

Section 84 BOFIA 2020Secretariat of the Board of Trustees

Section 85 BOFIA 2020Proceedings of the Board of Trustees

Section 86 BOFIA 2020Non Remuneration for Members of Board of Trustees

Section 87 BOFIA 2020Investment of Resolution Fund

Section 88 BOFIA 2020Dissolution of Resolution Fund

Section 89 BOFIA 2020Books of Accounts

Section 90 BOFIA 2020Audit of Resolution Fund

Section 91 BOFIA 2020Annual Report of Resolution Fund

Section 92 BOFIA 2020Financial year of Resolution Fund

Section 93 BOFIA 2020Limitation of action in relation to Resolution Fund, Etc.

Section 94 BOFIA 2020Regulation of Resolution Fund

(Section 95-101) Part X- Power to Impose Penalties

Section 95 BOFIA 2020Failure to Comply with Rules, etc.

Section 96 BOFIA 2020Power to compound offences

Section 97 BOFIA 2020Power to freeze accounts

Section 98 BOFIA 2020Right to Appear in Court

Section 99 BOFIA 2020Power to impose and review and penalties

Section 100 BOFIA 2020Power to grant exemptions

Section 101 BOFIA 2020Power to Charge Fees

SEE ALSO  Section 85-94 BOFIA 2020

(Section 102-132) Chapter E – Special Tribunals for the Enforcement and Recovery of Eligible Loans

Section 102 BOFIA 2020Establishment of A Special Tribunal for the Enforcement and Recovery of Eligible Loans

Section 103 BOFIA 2020Composition of the Tribunal

Section 104 BOFIA 2020Functions of the National Judicial Council

Section 105 BOFIA 2020Vacancy in the office of the Tribunal

Section 106 BOFIA 2020Constitution of the Tribunal

Section 107 BOFIA 2020Term of office

Section 108 BOFIA 2020Disqualification of members of the Tribunal

Section 109 BOFIA 2020Resignation and removal of members of the Tribunal

Section 110 BOFIA 2020Salaries, allowances and other conditions of service of members of the Tribunal

Section 111 BOFIA 2020Filling up of vacancies

Section 112 BOFIA 2020Vacancies

Section 113 BOFIA 2020Chief Registrar of the Tribunal

Section 114 BOFIA 2020Other staff of the Tribunal

Section 115 BOFIA 2020Jurisdiction of the Tribunal

Section 116 BOFIA 2020Power to stay proceedings

Section 117 BOFIA 2020The Tribunal’s fund

Section 118 BOFIA 2020Case fees

Section 119 BOFIA 2020Power to accept gifts

Section 120 BOFIA 2020Account and audit

Section 121 BOFIA 2020Application of Tribunal’s Fund

Section 122 BOFIA 2020Powers of the Tribunal and President of the Tribunal

Section 123 BOFIA 2020Panel of Experts

Section 124 BOFIA 2020Request for an Expert

Section 125 BOFIA 2020Right to Legal Representation

Section 126 BOFIA 2020Powers of the Tribunal and President of the Tribunal

Section 127 BOFIA 2020Appeal to the Court of Appeal

Section 128 BOFIA 2020Further Appeal

Section 129 BOFIA 2020Protection of members of Tribunal

Section 130 BOFIA 2020Interpretation

Section 131 BOFIA 2020Repeal

Section 132 BOFIA 2020Citation

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Inioluwa Olaposi

Hi, there. I'm Inioluwa, founder of LawHub NG. I study Law at Obafemi Awolowo University, Nigeria. And I am interested in entrepreneurship and human development. Contact me at Inioluwa@lawhub.com.ng.

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