Review of the Banking and Other Financial Institutions (BOFIA) Bill 2020

REVIEW OF THE BOFIA BILL

The Bank and other Financial Institutions Bill is currently under review of the National Assembly. The Bank and Other Financial Institutions Act 2004 has been in operation since 1991. However, there are sensitive areas that the Act did not address. Hence, the Central Bank of Nigeria has been regulating the Financial space with the aid of guidelines issued periodically in ensuring compliance with international standard.

The officers and employee of the Bank upon receiving appropriate authority may exercise the power bequeathed to the Bank under the Bill. To carry on a banking business in Nigeria, a company must be incorporated and validly licensed by the Bank. Carrying on a banking business without incorporation and license attracts a penalty of imprisonment with minimum of 5 years or N50, 000, 000 or twice cumulative of all deposits received, or both imprisonment and fine. Funds recovered from such businesses would be reverted to a licensed bank upon an authority from the Bank. Receiving bank may deposit the sum in the treasury bill or other securities. Therefore, deposit must be not be received by individuals or unincorporated and unlicensed bodies orally, by electronical means or through any advertising medium.