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 2020 – Functions, Powers and Duties of the Central Bank of Nigeria
Section 2 BOFIA 2020 – Banking Business
Section 3 BOFIA 2020 – Application for grant of Licence
Section 4 BOFIA 2020 – Investment and release of prescribed Minimum Share Capital
Section 5 BOFIA 2020 – Power to Revoke or vary conditions of Licence
Section 6 BOFIA 2020 – Opening and closing of branches
Section 7 BOFIA 2020 – Restructuring, reorganization, merger and disposal, etc. of Banks
Section 8 BOFIA 2020 – Operations of Foreign Banks in Nigeria and Offshore Banking
Section 9 BOFIA 2020 – Minimum paidup share capital of banks and compliance with the minimum paidup share capital requirement
Section 10 BOFIA 2020 – Shareholder’s Voting Rights to be Proportional to Shareholding
Section 11 BOFIA 2020 – Restriction of legal proceedings in respect of shares held in the name of another
Section 12 BOFIA 2020 – Revocation of Banking licence
Section 13 BOFIA 2020 – Minimum capital ratio
Section 14 BOFIA 2020 – Minimum holding of cash reserves, specified liquid assets, special deposits and stabilisation securities
(Section 15-22) Part II – Duties of Bank
Section 15 BOFIA 2020 – Maintenance of reserve fund
Section 16 BOFIA 2020 – Restriction of dividend
Section 17 BOFIA 2020 – Disclosure of interest by Directors, Managers and Officers
Section 18 BOFIA 2020 – Prohibition of interlocking directorship, etc.
Section 19 BOFIA 2020 – Restrictions on certain banking activities
Section 20 BOFIA 2020 – Acquisition of share in small and medium scale industries, etc.
Section 21 BOFIA 2020 – Restriction on operations of merchant banks
Section 22 BOFIA 2020 – Display of information
(Section 23-33) Part III – Book and Records of Account
Section 23 BOFIA 2020 – Proper books and records of account
Section 24 BOFIA 2020 – Returns by banks
Section 25 BOFIA 2020 – Publication of consolidated statements
Section 26 BOFIA 2020 – Publication of consolidated statements
Section 27 BOFIA 2020 – Contents and form of accounts
Section 28 BOFIA 2020 – Appointment, power and report of approved auditor
Section 29 BOFIA 2020 – Relationship with Specialised banks and finance houses
Section 30 BOFIA 2020 – Conduct Supervision and Competition
Section 31 BOFIA 2020 – Appointment of Directors with supervisory functions and other examiners
Section 32 BOFIA 2020 – Examination and report thereon
Section 33 BOFIA 2020 – Special Examination
(Section 34-42) Part IV – Failing Banks and Rescue Tools
Section 34 BOFIA 2020 – Intervention Powers in Failing Bank
Section 35 BOFIA 2020 – Application to the Federal High Court for winding up
Section 36 BOFIA 2020 – Cooperation, etc with Bank in Banking Crisis
Section 37 BOFIA 2020 – Bail-in of a Failing Bank, Specialised Bank or Other Financial Institution
Section 38 BOFIA 2020 – Bail–in Certificate
Section 39 BOFIA 2020 – Moratorium and regulations on Bail-In eligible instruments
Section 40 BOFIA 2020 – Termination of rights
Section 41 BOFIA 2020 – Asset separation tool
Section 42 BOFIA 2020 – Sale of business tool
(Section 43-48) Part V -General and Supplement
Section 43 BOFIA 2020 – Restriction on the use of certain names
Section 44 BOFIA 2020 – General restriction on advertisement
Section 45 BOFIA 2020 – Closure of bank during a strike, an epidemic or pandemic
Section 46 BOFIA 2020 – Prohibition of the receipt of commissions etc by staff of banks
Section 47 BOFIA 2020 – Disqualification and Exclusion of Certain Individuals from Management of Banks
Section 48 BOFIA 2020 – Offences by Companies, etc. and by servants and agents
(Section 49-56) – Part VI – Miscellaneous Matters
Section 49 BOFIA 2020 – Offences by Directors and Managers of banks
Section 50 BOFIA 2020 – Penalties for offences not otherwise provided for
Section 51 BOFIA 2020 – Protection against adverse claims
Section 52 BOFIA 2020 – Jurisdiction of the Federal High Court
Section 53 BOFIA 2020 – Application of Companies and Allied Matters Act, etc.
Section 54 BOFIA 2020 – Netting
Section 55 BOFIA 2020 – Priority of deposit liabilities
Section 56 BOFIA 2020 – Power 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 2020 – Prohibition of Unlicensed Financial Institutions
Section 58 BOFIA 2020 – Application for licence
Section 59 BOFIA 2020 – Failure to comply with conditions of licence, etc.
Section 60 BOFIA 2020 – Supervisory power of the Bank over other financial institutions and specialised banks
Section 61 BOFIA 2020 – Application of Chapter A
Section 62 BOFIA 2020 – Management 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 2020 – Risk-based capital requirements
Section 64 BOFIA 2020 – Consolidated supervision
Section 65 BOFIA 2020 – Competition
Section 66 BOFIA 2020 – Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT)
Section 67 BOFIA 2020 – Corporate governance and ethics
Section 68 BOFIA 2020 – Cybersecurity regulation by the Bank
Section 69 BOFIA 2020 – Standard for payment, settlement and clearance activities
Section 70 BOFIA 2020 – Designation of systemically important banks
Section 71 BOFIA 2020 – Restriction on operations of Agents of banks
Section 72 BOFIA 2020 – Unclaimed funds/ abandoned property
Section 73 BOFIA 2020 – Avoidance of pre-liquidation transfers
CHAPTER D- RESOLUTION FUND
(Section 74-94) Part IX- Resolution Fund and Resolution Tools
Section 74 BOFIA 2020 – Establishment of banking sector resolution fund
Section 75 BOFIA 2020 – Contribution by Bank
Section 76 BOFIA 2020 – Contribution by the Corporation
Section 77 BOFIA 2020 – Levy on banks, specialised banks and other financial institutions
Section 78 BOFIA 2020 – Purpose of the resolution fund
Section 79 BOFIA 2020 – Tax deductibility of annual levy and vested contributions
Section 80 BOFIA 2020 – Prohibition on payment of dividend and bonuses by defaulting eligible financial institution
Section 81 BOFIA 2020 – Establishment and composition of Board of Trustees
Section 82 BOFIA 2020 – Duties and responsibilities of Board of Trustees
Section 83 BOFIA 2020 – Tenure, cessation of membership, and casual vacancy
Section 84 BOFIA 2020 – Secretariat of the Board of Trustees
Section 85 BOFIA 2020 – Proceedings of the Board of Trustees
Section 86 BOFIA 2020 – Non Remuneration for Members of Board of Trustees
Section 87 BOFIA 2020 – Investment of Resolution Fund
Section 88 BOFIA 2020 – Dissolution of Resolution Fund
Section 89 BOFIA 2020 – Books of Accounts
Section 90 BOFIA 2020 – Audit of Resolution Fund
Section 91 BOFIA 2020 – Annual Report of Resolution Fund
Section 92 BOFIA 2020 – Financial year of Resolution Fund
Section 93 BOFIA 2020 – Limitation of action in relation to Resolution Fund, Etc.
Section 94 BOFIA 2020 – Regulation of Resolution Fund
(Section 95-101) Part X- Power to Impose Penalties
Section 95 BOFIA 2020 – Failure to Comply with Rules, etc.
Section 96 BOFIA 2020 – Power to compound offences
Section 97 BOFIA 2020 – Power to freeze accounts
Section 98 BOFIA 2020 – Right to Appear in Court
Section 99 BOFIA 2020 – Power to impose and review and penalties
Section 100 BOFIA 2020 – Power to grant exemptions
Section 101 BOFIA 2020 – Power to Charge Fees
(Section 102-132) Chapter E – Special Tribunals for the Enforcement and Recovery of Eligible Loans
Section 102 BOFIA 2020 – Establishment of A Special Tribunal for the Enforcement and Recovery of Eligible Loans
Section 103 BOFIA 2020 – Composition of the Tribunal
Section 104 BOFIA 2020 – Functions of the National Judicial Council
Section 105 BOFIA 2020 – Vacancy in the office of the Tribunal
Section 106 BOFIA 2020 – Constitution of the Tribunal
Section 107 BOFIA 2020 – Term of office
Section 108 BOFIA 2020 – Disqualification of members of the Tribunal
Section 109 BOFIA 2020 – Resignation and removal of members of the Tribunal
Section 110 BOFIA 2020 – Salaries, allowances and other conditions of service of members of the Tribunal
Section 111 BOFIA 2020 – Filling up of vacancies
Section 112 BOFIA 2020 – Vacancies
Section 113 BOFIA 2020 – Chief Registrar of the Tribunal
Section 114 BOFIA 2020 – Other staff of the Tribunal
Section 115 BOFIA 2020 – Jurisdiction of the Tribunal
Section 116 BOFIA 2020 – Power to stay proceedings
Section 117 BOFIA 2020 – The Tribunal’s fund
Section 118 BOFIA 2020 – Case fees
Section 119 BOFIA 2020 – Power to accept gifts
Section 120 BOFIA 2020 – Account and audit
Section 121 BOFIA 2020 – Application of Tribunal’s Fund
Section 122 BOFIA 2020 – Powers of the Tribunal and President of the Tribunal
Section 123 BOFIA 2020 – Panel of Experts
Section 124 BOFIA 2020 – Request for an Expert
Section 125 BOFIA 2020 – Right to Legal Representation
Section 126 BOFIA 2020 – Powers of the Tribunal and President of the Tribunal
Section 127 BOFIA 2020 – Appeal to the Court of Appeal
Section 128 BOFIA 2020 – Further Appeal
Section 129 BOFIA 2020 – Protection of members of Tribunal
Section 130 BOFIA 2020 – Interpretation
Section 131 BOFIA 2020 – Repeal
Section 132 BOFIA 2020 – Citation