President Muhammadu Buhari has assented to the Banks and Other Financial Institutions Act 2020 after a meticulous legislative review, as an updated enabling law in response to developments and significant evolution in the financial sector.
Revealing this in a statement today, November 13, 2020, presidential spokesman, Garba Shehu, said the Act repeals the extant Banks and Other Financial Institutions Act 1991 as amended, and is expected to enhance the resilience of the financial system for the growth of Nigeria’s economy.
The Presidency said the Act will go a long way increasing the appetite of banks and other financial institutions to channel credit to the real sector, besides introducing a credit tribunal to improve loan recovery.
“Furthermore, the legislation addresses the recurring incidence of high non-performing loans within the financial system and strengthens the regulatory and supervisory framework for the financial sector.
“It provides additional tools for managing failing institutions and systemic distress to preserve financial stability,” the statement emphasized.
- Tags: President Muhammadu Buhari, BOFIA 2020