Banks and Other Financial Institutions Act (Amendment) Bill 2020 (A Comprehensive Analysis of the BOFIA 2020)

Abstract

In July 2020, the Senate of the Federal Republic of Nigeria for the first time since 29 years passed a Bill to repeal the Banks and Other Financial Institutions Act (BOFIA) Cap B3 Laws of the Federation of Nigeria 2004 and re-enact the Banks and Other Financial Institutions Act (BOFIA) Cap B3 Laws of the Federation of Nigeria 2004 (Amendment) Bill, 2020. The Bill seeks to regulate banking and businesses of other financial institutions by prohibiting the carrying on of such businesses in Nigeria except under licence and by a company incorporated in Nigeria. This article examines section by section, the innovative provisions of the Bill and how they clearly improved on the old Act to meet the nuances of the current business world. It is hopeful that just as the new CAMA received the assent of the President of the Federal Republic of Nigeria, the new BOFIA scales through the House of Representatives and eventually gets the President's assent as the new Act is poised to strengthen the legal framework for the regulation of banks and bring it in line with global best practices, and prevent distress especially during and after this turbulent period of COVID-19, so that the country can adequately prepare and deal with potential post COVID-19 challenges in the banking sector.