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

(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

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

(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

Section 124-132 Nigerian BOFIA 2020

Section 124-132 BOFIA 2020

Section 124 to 132 of the Bank and Other Financial Institutions Act 2020 is part of CHAPTER E [SPECIAL TRIBUNALS FOR THE ENFORCEMENT AND RECOVERY OF ELIGIBLE LOANS] of the Act.

Section 124 BOFIA 2020

Request for an Expert

(1) The Tribunal shall, upon an application by any of the parties or on the Tribunal’s own motion, decide that an independent expert opinion is required.

(2) Where the Tribunal decides in accordance with subsection (1) of this section, it shall request that the lead expert assigns an expert to the case.

(3) Any expert appointed under sub section (2) of this section shall provide the opinion within such time as may be prescribed by the Tribunal.

(4) Notwithstanding the provisions of this section or section 123, the opinion of the experts provided to the Tribunal, is advisory and not binding on the Tribunal.

Section 125 BOFIA 2020

Right to Legal Representation

A party may appear either in person or authorise one or more legal practitioners to represent it before the Tribunal.

Section 126 BOFIA 2020

Powers of the Tribunal and President of the Tribunal

(1) The Tribunal shall have all the inherent powers of a superior court of record and shall give its judgment in writing and may make or impose sanctions but not limited to penalties, suspensions, withdrawal of registration or licenses, specific performance, or restitution, imprisonment and such other sanctions as it may deem appropriate in each case.

(2) A certified true copy of the decision of the Tribunal shall be supplied to the parties upon request, subject to payment of the prescribed fees.

(3) The Tribunal shall have the power to enforce its judgment and accordingly, may commit any person for contempt.

(4) An award or judgment of the Tribunal shall be enforced as if it were a judgment of the Federal High Court or State High Court or High Court of the Federal Capital Territory upon registration of a copy of such award or judgment with the Chief Registrar of the Federal High Court or State High Courts or High Court of the Federal Capital Territory by the Tribunal.

Section 127 BOFIA 2020

Appeal to the Court of Appeal

(1) Any person dissatisfied with a decision of the Tribunal may appeal against such decision to the Court of Appeal if-
(a) it is a final decision, on points of law or mixed law and fact; or
(b) it is an interlocutory decision of the Tribunal, on points of law only.

(2) The Court of Appeal shall hear and determine all appeals emanating from the Tribunal on an accelerated basis and in priority to all other appeals, and for this purpose the President of the Court of Appeal shall issue or cause to be issued
special practice directions for the Court of Appeal exclusively for the expedited and accelerated hearing and determination of appeals emanating from the Tribunal.

Section 128 BOFIA 2020

Further Appeal

(1) An appeal against the decision of the Court of Appeal at the instance of either party shall lie to the Supreme Court.

(2) The Supreme Court shall hear and determine all appeals emanating from the Court of Appeal in relation to appeals against the Court of Appeal’s decisions on appeals to the Court of Appeal from the Tribunal on an accelerated basis
and in priority to all other appeals, save election petition matters and appeals emanating from specially designated courts in pursuance of the Asset Management Corporation of Nigeria Act (as amended), and for this purpose the Chief
Justice of Nigeria shall issue or cause to be issued special practice directions for the Supreme Court exclusively for the expedited and accelerated hearing and determination of such appeals.

Section 129 BOFIA 2020

Protection of members of Tribunal

(1) The President of the Tribunal, members of the Tribunal or any other person acting judicially shall not be liable to be sued in any court for any act done or ordered to be done by him in the discharge of his judicial duty, whether or not
within the limits of the Tribunal’s jurisdiction.

(2) No officer of the court or other person bound to execute the lawful warrant or orders of the Tribunal shall be liable to be sued in any court, for the execution of any warrant or order which such person would be bound to execute, if within the jurisdiction of the person issuing the same.

(3) No action shall be brought against any member or staff of the Tribunal in respect of any act or order performed in the execution, or intended execution of the powers or jurisdiction vested in him, except such act or order is in excess of the powers and jurisdiction of the Tribunal.

Section 130 BOFIA 2020

Interpretation

In this Act, unless the context otherwise requires-
associate” means a company in which another company owns not less than 20 per cent of the paid-up share capital;
bank” means a bank licensed under this Act;
Bank” means the Central Bank of Nigeria;

Bankers’ Committee” means a committee comprising the Bank, the chief executives of all banks and such other members as the Committee may from time to time admit;
banking business” means the business of receiving deposits on current account, savings deposit account or other similar account, paying or collecting cheques, drawn by or paid in by customers; provision of finance consultancy and advisory
services relating to corporate and investment matters, making or managing investments on behalf of any person whether such businesses are conducted digitally, virtually or electronically only or such other business as the Governor may, by order published in the Gazette, designate as banking business;

Board” means the Board of Directors of the Central Bank of Nigeria;
chief executive” means a person, by whatever name called, who either individually or jointly with one or more other person, is responsible, subject to the authority of the board of directors, for the conduct of the business and administration of the
bank; specialised bank or other financial institution;
the Corporation” means the Nigeria Deposit Insurance Corporation;
deposit” means money lodged with any person whether or not for the purpose of any interest, profit or dividend and whether or not such money is repayable upon demand upon a given period of notice or upon a fixed date;
Deputy Governor” means a Deputy Governor of the Central Bank of Nigeria;
director” includes any person by whatever name such person may be referred to, carrying out or empowered to carry out substantially the same functions of a director in relation to the affairs of a company incorporated under the Companies and Allied Matters Act;
eligible loan” means any credit facility, overdraft, loan, risk asset to the tune of at least N25,000,000.00 (Twenty Five Million Naira) or such other amount as may be prescribed by the Bank which repayment obligations have become due for not less than 90 days and has been designated by an instrument under the hand of the Governor as being eligible for enforcement and recovery before the Tribunal;
factoring” means the business of acquiring debts due to any person;
Federation” means the Federal Republic of Nigeria;
Governor” means the Governor or any of the Deputy Governors appointed to act on behalf of the Governor of the Central Bank of Nigeria;
leasing” means the business of letting or sub-letting movable property on hire for the purpose of the use of such property by the hirer or any other person in any business whatsoever and where the lessor is the owner of the property regardless of
whether the letting is with or without an option to purchase the property;
licence” means a licence issued under this Act;
non-interest bank” otherwise known as profit and loss sharing bank, means a bank which transacts banking business, engages in trading, investment and commercial activities as well as the provision of financial products and services in accordance with the principles and rules of Islamic finance;
non-interest banking instruments“, means instruments that do not pay interest but which may entitle the holder thereof to profit in conformity with principles and rules of Islamic finance;
other financial institution” means any individual, body, association or group of persons; whether corporate or unincorporated other than the banks licensed under this Act, which carry on the business of a discount house, bureau de change, finance company, money brokerage, authorized buying of foreign exchange, International Money Transfer Services, mortgage refinance company, mortgage guarantee company, financial holding company or payment service providers regardless of whether such businesses are conducted digitally, virtually or electronically only and companies whose objects include factoring, project financing, equipment leasing, debt administration, fund management, private ledger services, investment management, local purchases order financing, , and such other business as the Bank may from time to time, designate regardless of whether such businesses are conducted digitally, virtually or electronically only;

‘‘payment, clearing, or settlement activity’’ means an activity carried out by one or more financial institutions to facilitate the completion of financial transactions, but shall not include any offer or sale of a security under the Investment and Securities
Act;
Payment Service provider” means an entity licenced by the Bank to provide payment service;
Payment Service” means technical or technology infrastructure, software solutions or services for facilitating end-to-end electronic payment to third parties and such other services as the Governor may by regulation designate;
President” means the President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria;
related party” includes spouse, father, mother, child, brother, sister, uncle, aunt and cousins where applicable, and their spouses and such other relationships as the Bank may by regulation prescribe from time to time;
shareholders funds” means the aggregate of paid-up share capital, statutory and all other reserves of a bank, specialised bank or other financial institution;

significant shareholder” means a person or entity who –
(a) beneficially owns 5 per cent or more of the paid-up share capital of a bank, specialised bank or other financial institution; or
(b) is entitled to cast a majority of the votes that may be cast at a general meeting of the bank, specialised bank or other financial institution or has the ability to control the voting of a majority of those votes, either directly or through a controlled entity; or
(c) is able to appoint or to veto the appointment of a majority of the directors of the bank, specialised bank or other financial institution.
significant shareholding” shall be construed accordingly;
specialised banks” include, Bank of Industry, Bank of Agriculture, Development Bank of Nigeria, Nigerian Export Import Bank, The Infrastructure Bank, Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinancing Company, primary mortgage banks, micro-finance banks, non interest bank and such other banks as may be designated from time to time by the Bank; and
State” means any of the States of the Federation.

Section 131 BOFIA 2020

Repeal

The Banks and Other Financial Institutions Act 1991 (as Amended) is hereby repealed.

Section 132 BOFIA 2020

Citation

This Act may be cited as the Banks and Other Financial Institutions Act, 2020.

Section 113-123 Nigerian BOFIA 2020

Section 113-123 BOFIA 2020

Section 113 to 123 of the Bank and Other Financial Institutions Act 2020 is part of CHAPTER E [SPECIAL TRIBUNALS FOR THE ENFORCEMENT AND RECOVERY OF ELIGIBLE LOANS] of the Act.

Section 113 BOFIA 2020

Chief Registrar of the Tribunal

(1) The Chief Registrar of the Tribunal shall be appointed by the President of the Tribunal.

(2) The Chief Registrar of the Tribunal shall be a legal practitioner of not less than 10 years post call experience and shall perform such duties in exercise of the powers and authority of the Tribunal as may, from time to time, be assigned to him by the Tribunal, Rules of the Tribunal and, the President of the Tribunal.

(3) The Chief Registrar, or any other officer of the Tribunal so authorised, shall have power to administer oaths and perform such other duties with respect to any proceedings in the Tribunal as may be prescribed by the rules or by any special order of the President of the Tribunal.

Section 114 BOFIA 2020

Other staff of the Tribunal

(1) The President of the Tribunal may appoint such many persons as may be required to be commissioners for taking affidavits and declarations and receiving production of documents or for taking the examination of witnesses on interrogatories or otherwise which may be necessary to be taken in respect of any proceedings in the Tribunal , and any order of the Tribunal for the attendance and examination of witnesses or production of documents before any such commissioner shall be enforced in the same manner as an order to attend and be examined or produce documents before the Tribunal.

(2) The Tribunal shall employ the services of such staff as the Tribunal may deem necessary for the efficient performance of its functions under or pursuant to this Chapter of this Act.

(3) The remuneration (including allowances) and terms and conditions of service of the staff of the Tribunal shall be as may be determined by the Tribunal provided that it is not less than what is obtainable in the Federal High Court.

(4) Any amounts payable under this section shall be charged and paid out of the Consolidated Revenue Fund of the Federation in accordance with section 81(3) of the Constitution of the Federal Republic of Nigeria 1999.

(5) All employees of the Tribunal shall be entitled to pensions and other retirement benefits in line with the Pension Reform Act 2014.

(6) Nothing in this section shall prevent the appointment of a person to any office, on terms which preclude the grant of pension and other retirement benefits

Section 115 BOFIA 2020

Jurisdiction of the Tribunal

(1) The Tribunal shall have and exercise jurisdiction on any causes and matters –
(a) pertaining to enforcement and recovery of eligible loans by financial services banks, specialised banks or other financial institutions;

(b) connected with or pertaining to the enforcement of security or guarantee, or attachment of any assets under an eligible loan made by any bank, specialised bank or other financial institution in Nigeria, to its customers.

(2) Nothing in the foregoing provisions of this section shall affect the jurisdiction and all other powers of the Federal High Court, State High Court or the High Court of the Federal Capital Territory to continue to hear and determine debt recovery and related financial consumer causes and matters before such court at the date of the commencement of this Act:
Provided that such matters before the courts shall be concluded timeously.

(3) The Tribunal in the exercise of the jurisdiction vested in it by or under this Act shall, in every cause or matter have power to grant, either absolutely or on such terms and conditions as the Tribunal thinks just, all such remedies whatsoever as any of the parties thereto may appear to be entitled in respect of any legal or equitable claim properly brought forward by them in the cause or matter so that, as far as possible, all matters in controversy between the parties may be completely and finally determined and all multiplicity of legal proceedings concerning any of those matters avoided.

(4) For the purpose of exercising its jurisdiction under this Act, the Tribunal shall have power to grant summary judgment on applications filed by a bank, specialised bank or other financial institution where there is an indebtedness that the debtor has acknowledged in writing and such debt remains unpaid after 90 days of the acknowledgement.

(5) The Tribunal shall also exercise jurisdiction on any other matter as may be prescribed by an Act of the National Assembly.

(6) In the exercise of its jurisdiction under this Act, the Tribunal shall have the power to interpret this Act and any other enactment, rules or regulation as may be applicable

Section 116 BOFIA 2020

Power to stay proceedings

(1) If any party to a loan agreement or security agreement with a financial institution has submitted in such agreement to the Tribunal’s jurisdiction, and such person commences an action in any court with respect to any matter which is a subject of the agreement, the court to which such action is commenced may, if satisfied that there is no sufficient reason why the action should not be referred to the Tribunal in accordance with the agreement, make an order staying the proceedings.

(2) The order staying proceedings in subsection (1) of this section shall not be made where the financial institution has filed pleadings or taken any steps in the action other than applying that the court should refer parties to the Tribunal.

Section 117 BOFIA 2020

The Tribunal’s fund

(1) The Tribunal shall establish and maintain a fund, which shall be applied towards the discharge of its functions under this Act (hereinafter referred to as “the Tribunal’s Fund”).

(2) There shall be paid and credited to the Tribunal’s Fund established under subsection (1) of this section-
(a) funds provided to the Tribunal by the Federal Government; and
(b) gifts, grants, donations or endowments or any other moneys that are not inconsistent with its objects under this Chapter of this Act; and
(c) case fees collected for the services rendered by the Tribunal under this Chapter of this Act.

Section 118 BOFIA 2020

Case fees

The case fees payable by banks, specialised banks or other financial institutions shall be 0.5 per cent of the amount of their claim or such other percentage as the President may determine by rules

Section 119 BOFIA 2020

Power to accept gifts

The Tribunal may accept any grant of money or contributions on such terms and conditions, if any, as may be specified by the person or organization making such grant or contribution provided that the terms and conditions are consistent with the
functions and objectives of the Tribunal.

Section 120 BOFIA 2020

Account and audit

The Tribunal shall keep proper accounts of its receipts, payments, assets, and liabilities and shall submit the accounts annually for auditing and reporting to the Auditor-General of the Federation who shall submit his reports to the National
Assembly; and for that purpose, the Auditor-General or any person authorised by him in that behalf shall have access to all the books, records, returns and other documents relating to those accounts.

Section 121 BOFIA 2020

Application of Tribunal’s Fund

The Tribunal may apply the proceeds of the Tribunal’s Fund established in section 117 of this Act to –
(a) meet the cost of administration of the Tribunal;
(b) reimburse members of the Tribunal and staff or any committee of the Tribunal for expenses authorised;
(c) pay the salaries, remuneration or allowances, pensions and gratuities as applicable to the members of the Tribunal and staff of the Tribunal;
(d) finance staff promotion, training, internships, scholarships, research and similar activities;
(e) maintain any property acquired by or vested in the Tribunal;
(f) meet any capital expenditure approved by the Tribunal; and
(g) implement all or any of the functions of the Tribunal under this Act or any matter connected with those functions.

Section 122 BOFIA 2020

Powers of the Tribunal and President of the Tribunal

(1) The President of the Tribunal shall issue or cause to be issued rules regulating its procedures which shall include provision for the expedited and accelerated hearing and determination of causes and matters before the Tribunal.

(2) The Tribunal shall have, for the purposes of discharging its functions under this Chapter of this Act, power to-
(a) grant an injunction or appoint a liquidator by an interlocutory order in all cases in which it appears to the Tribunal to be just or convenient so to do.
(b) make such orders as it may deem appropriate for the enforcement of security or guarantee, or attachment of any assets under an eligible loan made by any bank, specialised bank or other financial institution in Nigeria;

(c) make an order of mandamus requiring any act to be done or an order of prohibition prohibiting any proceedings, cause or matter, or an order of certiorari removing any proceedings, for any purpose, notwithstanding that same is against an officer or authority of the Federation
(d) upon an ex parte application to the Tribunal, before or after the filing of the action for debt recovery, grant custody and/or possession of debtor’s movable or immovable property to a financial institution pending the hearing and determination of a debt recovery action, where the financial institution satisfies the Tribunal that the debtor or debtor company is the bona fide owner of such property;
(e) upon an ex parte application to the Tribunal, before or after the filing of the action for debt recovery, grant an order freezing a debtor or debtor company’s account(s) pending the hearing and determination of a debt recovery action, where the financial institution satisfies the Tribunal that the debtor or debtor company is the bona fide owner of such account:
Provided that the order of possession and freezing order referred to in subsection (2)(e) and (2)(f) of this section, shall subsist till judgment or a final determination of the action, unless expressly discharged by the Tribunal;

(f) summon and enforce the attendance of any person and examine him on oath;
(g) require the discovery and production of documents and call for the examination of witness or documents;
(h) promote reconciliation, encourage and facilitate amicable settlement among parties in any proceedings before the Tribunal; and
(i) do anything which in the opinion of the Tribunal is incidental or ancillary to its functions under this Act.

(3) The grant of stay of proceedings, stay of execution or injunction pending appeals, or leave to appeal in favour of any party, shall-
(a) In the case of stay of proceedings and leave to appeal in respect of interlocutory appeals, not be granted under any circumstances and the Tribunal shall as practicable as possible, sit on a day-to-day basis; and
(b) In the case of stay of execution, injunction pending appeal and leave to appeal in respect of final judgment, be conditional upon deposit by the applicant of the judgment sum into an interest yielding account in the name of the registry of the Tribunal.

(4) Any proceeding before the Tribunal shall be deemed to be a judicial proceeding and the Tribunal shall be deemed to be a civil court for all purposes.

(5) Any federal statute of limitation, statute of limitation of a State or of the Federal Capital Territory or any like statute or rule limiting the time within which an action may be commenced does not apply or operate to bar or invalidate any claim brought before the Tribunal for the recovery of an eligible debt.

Section 123 BOFIA 2020

Panel of Experts

(1) There is established for the Tribunal, a panel of experts who shall provide opinion in cases before the Tribunal as may be required from time to time.

(2) The Bank shall appoint the members of the panel of experts established in subsection (1) of this section:
Provided that no person shall be appointed unless such person possesses a minimum of ten (10) years’ experience in banking and credit or capital market operations.

(3) There shall be a lead expert who shall be so designated by the Bank and shall be responsible for assigning cases that require expert opinion before the Tribunal, to members of the Panel.

(4) The panel of experts shall be independent and impartial in the performance of its functions.

(5) The panel of experts shall be paid such remuneration as may be determined by the Bank.

Section 102-112 Nigerian BOFIA 2020

Section 102-112 BOFIA 2020

Section 102 to 112 of the Bank and Other Financial Institutions Act 2020 is part of CHAPTER E [SPECIAL TRIBUNALS FOR THE ENFORCEMENT AND RECOVERY OF ELIGIBLE LOANS] of the Act.

Section 102 BOFIA 2020

Establishment of A Special Tribunal for the Enforcement and Recovery of Eligible Loans

(1) There is established a body to be known as the Special Tribunal for the Enforcement and Recovery of Eligible Loans (in this Act referred to as “the Tribunal”).

(2) The Tribunal shall exercise the jurisdiction, powers and authority as conferred on it in this Chapter of this Act.

Section 103 BOFIA 2020

Composition of the Tribunal

(1) The Tribunal shall consist of not less than eleven [11] persons to be appointed as full-time members by the President of the Federal Republic of Nigeria as follows:
(a) a President of the Tribunal who shall be a legal practitioner of not less than fifteen years post call, with a minimum of seven (7) years’ experience in banking and financial services law and practice or in the banking and financial services sector; and
(b) other members, all of whom shall be legal practitioners of not less than 12 years post call, with a minimum of five (5) years’ experience in banking and financial services industry law and practice or in the banking and financial services sector.

(2) A person appointed as a member of the Tribunal shall not be removed from office except in accordance with the provisions of this Chapter of this Act.

(3) The President of the Tribunal shall be the Chief Executive and Accounting Officer and shall be responsible for the overall control, supervision and administration of the Tribunal.

(4) No member of the Tribunal shall exercise any administrative function, except as otherwise delegated by the President of the Tribunal.

Section 104 BOFIA 2020

Functions of the National Judicial Council

National Judicial Council shall have the power to recommend to the President any disciplinary action against the President of the Tribunal or any member of the Tribunal including the removal of the said President of the Tribunal or a member(s) of the Tribunal on any or all the grounds provided for in this Chapter of this Act.

Section 105 BOFIA 2020

Vacancy in the office of the Tribunal

In the absence of the President of the Tribunal, the most senior member of the Tribunal by virtue of date of appointment or in the event of a tie, by virtue of date of call to the Bar, shall act as the President of the Tribunal pending the return of the President of the Tribunal or appointment of a new President of the Tribunal

Section 106 BOFIA 2020

Constitution of the Tribunal

(1) The Tribunal shall have and exercise jurisdiction throughout the Federation, and for that purpose, the President of the Tribunal shall for administrative purpose divide the entire Federation into such number of divisions as may be deemed
appropriate, having regard to the volume of cases likely to be instituted and provided that the total number of divisions in operation at any point in time shall not be less than two.

(2) For the purpose of exercising the jurisdiction conferred on it by this Act, the Tribunal shall be duly constituted by one member of the Tribunal sitting alone.

Section 107 BOFIA 2020

Term of office

The President and members of the Tribunal shall hold office from the date of appointment to the Tribunal until the date of dissolution of the Tribunal:
Provided that no person above 65 years shall be appointed or remain in office as a member of the Tribunal.

Section 108 BOFIA 2020

Disqualification of members of the Tribunal

(1) A member of the Tribunal shall cease to hold office if such member-
(a) attains the age of 65; or
(b) becomes of unsound mind or owing to ill health is incapable of carrying out his duties; or
(c) is adjudged bankrupt or such member makes a compromise with his creditors; or
(d) is convicted of a felony or any offence involving fraud or dishonesty by a court of competent jurisdiction; or
(e) is guilty of serious misconduct in relation to his duties; or
(f) is disqualified or suspended (other than at his own request) from practicing the legal profession in any part of Nigeria or outside Nigeria by the order of any competent authority made in respect of him personally; or has an interest in or is a director or shareholder of a financial services provider;
(g) has an interest in or is a director or shareholder of a bank, specialised bank or other financial institution;
(h) has been convicted of a sexual offence.

Section 109 BOFIA 2020

Resignation and removal of members of the Tribunal

(1) A member of the Tribunal may, by notice in writing under his hand addressed to the President through the National Judicial Council resign from office.

(2) A member of the Tribunal may be removed from office by an order made by the President on the recommendation of the National Judicial Council based on any of the grounds referred to in section 108 of this Act and after such member has been given a fair hearing; or on the ground of a proven charge of misbehaviour or incapacity after due inquiry has been made and the member concerned has been informed of the charge against him and given an opportunity of being heard in respect of the charge.

Section 110 BOFIA 2020

Salaries, allowances and other conditions of service of members of the Tribunal

(1) The salaries and allowances of the President of the Tribunal, members and Chief Registrar of the Tribunal shall be equivalent to remuneration of the Chief Judge, Judges and Chief Registrar of the Federal High Court respectively.

(2) Any amounts payable under this section shall be charged to and paid out of the Consolidated Revenue Fund of the Federation in accordance with section 81(3) of the Constitution of the Federal Republic of Nigeria 1999.

Section 111 BOFIA 2020

Filling up of vacancies

If for reason other than temporary absence, any vacancy occurs in the office of a member of the Tribunal then the President shall appoint another person in accordance with the provisions of this Chapter of this Act to fill the vacancy

Section 112 BOFIA 2020

Vacancies

The tribunal shall be deemed to be duly constituted notwithstanding any vacancy in the membership of the Tribunal.

Section 95-101 Nigerian BOFIA 2020

Section 95-101 BOFIA 2020

Section 95, 96, 97, 98, 99, 100, and 101 of the Bank and Other Financial Institutions Act 2020 is under Part X (POWER TO IMPOSE PENALTIES) of the Act.

Section 95 BOFIA 2020

Failure to Comply with Rules, etc.

Without prejudice to any other provisions of this Act, the Governor may impose any one or more of the following sanctions on any bank, specialised bank, other financial institution, or person for failure to comply with any of the provisions of this Act, the Central Bank of Nigeria Act or any other law relating to banking or any rules, regulations guidelines or directives made thereunder —
(a) suspension of the authorized foreign exchange dealership license for any period of time as the Bank may prescribe;
(b) prohibition from participation in any medium for transaction in foreign exchange;
(c) suspension from participation in bank clearing systems;
(d) forfeiture to the Bank of any pecuniary benefit obtained as a result of the violation or breach;
(e) suspension of any licence issued or given to any bank, specialised bank or other financial institution;
(f) imposition of a penalty not exceeding N100,000,000; and
(g) any other sanctions the Bank may deem appropriate

Section 96 BOFIA 2020

Power to compound offences

(1) Notwithstanding the provisions of any law, the Governor may, in the event that an offence or infraction is punishable under this Act, the Central Bank of Nigeria Act, the Foreign Exchange (Monitoring and Miscellaneous) Provisions Act, the Credit Reporting Act or any other law relating to banking, accept such sums as the Governor thinks fit, not exceeding the minimum amount of penalty to which that person would have been liable under any of the foregoing enactments.

(2) Any moneys paid to the Governor pursuant to subsection (1) of this section, shall be paid into the Bank’s penalty account which shall be established for that purpose.

Section 97 BOFIA 2020

Power to freeze accounts

(1) Notwithstanding anything contained in any other enactment, where the Governor has reason to believe that transactions undertaken in any account with any bank, specialised bank or other financial institution are such as may involve the commission of any criminal offence under any law, the Governor may make an ex-parte application for an Order of the Federal High Court verifying on oath the reasons for the Governor’s belief, and on obtaining such Court Order direct or cause a direction to be issued to the manager of the bank, specialised bank or other financial institution where the account is situated or believed to be, or in the alternative to the head office of such bank, specialised bank or other financial institution directing the bank, specialised bank or other financial institution to freeze the account.

(2) The manager of a bank, specialised bank or other financial institution in which a direction has been issued on an account under subsection (1) of this section shall, on receipt of such direction, suspend all transactions whatsoever related to such account for such period as may be specified in the direction.

(3) Where an account has been frozen pursuant to this section, the Governor shall refer the matter to the Nigeria Police Force, the National Drug Law Enforcement Agency, the Economic and Financial Crimes Commission or any other law enforcement authority or appropriate regulatory authority. Provided that where the matter relates to an infraction of the provisions of this Act or other enactment administered by the Bank, the Governor may cause such matter to be investigated by the Bank.

(4) Where it is not possible for the Bank, the Nigeria Police Force, the National Drug Law Enforcement Agency, the Economic and Financial Crimes Commission, or any other appropriate regulatory authority to conclude its investigations within the period stipulated in the Court Order, the Governor shall apply to the Federal High Court for an Order for the continued freezing of the account concerned.

Section 98 BOFIA 2020

Right to Appear in Court

(1) Subject to the provisions of section 174(1) of the Constitution of the Federal Republic of Nigeria, any legal practitioner in the employment of the Bank may, with the consent of the Governor, prosecute or defend criminal, civil or other proceedings in the name of and on behalf of the Bank in respect of matters relating to the business or operations of the Bank, any bank, specialised bank or other financial institution in the course of carrying out the objectives of this Act, the Central Bank of Nigeria Act, the Foreign Exchange (Monitoring and Miscellaneous) Provisions Act or any other law relating to banking or the business of other financial institution.

(2) Notwithstanding the provisions of any enactment to the contrary, a person appointed under subsection (1) of this section shall, while so appointed be entitled to represent the Bank as a legal practitioner for the purpose and in the course of such person’s employment in any civil or criminal proceedings, without prejudice to the power of the Bank to engage private legal practitioners in any proceeding.

Section 99 BOFIA 2020

Power to impose and review and penalties

Notwithstanding the provisions of this Act or of any other law the Governor may by notice published in the print and electronic media and in the Gazette, reduce or increase the monetary penalty payable for the contravention of any of the provisions of this Act.

Section 100 BOFIA 2020

Power to grant exemptions

The Governor may exempt any other financial institution, non-interest bank or specialised bank from any of the provisions of this Act by a notice published in the print and electronic media and in the Gazette

Section 101 BOFIA 2020

Power to Charge Fees

Notwithstanding the provisions of this Act, or the Central Bank of Nigeria Act, the Bank may charge such fees as the Board may consider appropriate for any of its services.

Section 85-94 Nigerian BOFIA 2020

Section 85-94 BOFIA 2020

Section 85 to 94 of the Bank and Other Financial Institutions Act 2020 is part of Part IX (RESOLUTION FUND AND RESOLUTION TOOLS) of the Act.

Section 85 BOFIA 2020

Proceedings of the Board of Trustees

The Board of Trustees shall meet for the conduct of its business at the Secretariat or such other place at such times and on such days as the Chairman of the Board of Trustees may decide; and the Board of Trustees shall, subject to the provisions of
this Act, have power to regulate its proceedings.

Section 86 BOFIA 2020

Non Remuneration for Members of Board of Trustees

No remuneration shall be payable to members of the Board of Trustees, save such sitting allowances as the Governor may from time to time determine. Provided that members of the Board of Trustees shall be entitled to be reimbursed in full for all
reasonable expenses incurred in pursuit of the business of the Board of Trustees and in the discharge of their functions.

Section 87 BOFIA 2020

Investment of Resolution Fund

(1) All moneys standing to the credit of the Resolution Fund which are not immediately required to be utilised shall be invested in any of the following –
(a) debt securities issued, or which are guaranteed by the Federal Government of Nigeria or the Bank;
(b) with the prior written consent of the Bank, debt securities issued, or which are guaranteed by the central government of a sovereign country;
(c) with the prior written consent of the Bank, debt securities issued, or which are guaranteed by an international financial institution of which Nigeria is a member;
(d) repurchase agreements fully collaterised by debt securities of the governments and institutions mentioned in paragraphs (a)-(c) of this subsection (1), with a maximum maturity of 30 days; and
(e) such other debt securities or instruments that the Board of Trustees may with the approval of the Bank from time to time, designate; Provided always that in the case of paragraphs (b), (c), and (d) above, such debt securities or instruments shall be freely tradable securities.

(2) All bonuses, profits and other returns which accrue on investments made in pursuance of subsection (1) of this section shall form part of the Resolution Fund and may be re-invested in accordance with subsection (1) of this section.

Section 88 BOFIA 2020

Dissolution of Resolution Fund

At the dissolution date of the Resolution Fund prescribed by the Bank, the Resolution Fund shall stand dissolved and the Board of Trustees shall appoint on such terms as it deems fit, one or more liquidators to wind up the affairs of the Resolution Fund, realise all assets of the Resolution Fund and, distribute, in accordance with such directions as may be issued by the Bank, the proceeds of realisation and all moneys then standing to the credit of the Resolution Fund.

Section 89 BOFIA 2020

Books of Accounts

The Board of Trustees shall cause to be kept, for the Resolution Fund, proper books of accounts with respect to all levies and contributions paid to the Resolution Fund, and all the transactions and investments of the Resolution Fund, which shall give a
true and fair view of the state of affairs of the Resolution Fund in such form and in compliance with such accounting standards as may be prescribed by the Bank.

Section 90 BOFIA 2020

Audit of Resolution Fund

(1) The Board of Trustees shall cause the accounts of the Resolution Fund to be submitted for audit within six weeks after the end of each financial year to such independent firm of auditors as the Board of Trustees may appoint. To qualify for such appointment, such independent firm of auditors shall –
(a) be a member of one of the professional bodies recognised in Nigeria; and
(b) be resident in Nigeria and carry on in Nigeria, professional practice as an accountant and auditor.

(2) The Board of Trustees shall cause the audited accounts of the Resolution Fund to be submitted to the Governor, Corporation and each bank, specialised bank and other financial institution, within twelve weeks after the end of the
financial year to which such account relates.

Section 91 BOFIA 2020

Annual Report of Resolution Fund

The Board of Trustees shall, not later than three months after the end of each financial year, beginning with the financial year following the commencement date, submit a report of its activities during the financial year concerned in such form and
with such information as may be specified by the Bank (in this Act referred to as an “annual report”) to the Governor, the Corporation, and each bank, specialised bank and other financial institution to which the levy imposed under section 77 of this Act applies.

Section 92 BOFIA 2020

Financial year of Resolution Fund

The financial year of the Resolution Fund shall begin on the 1st day of January and end on the 31st day of December.

Section 93 BOFIA 2020

Limitation of action in relation to Resolution Fund, Etc.

(1) Without prejudice to sub-section (3) of this section –
(a) no suit shall lie or be instituted against the Resolution Fund, a member of the Board of Trustees of the Resolution Fund or any person acting on behalf of the Resolution Fund for any act done or omitted to be in pursuance or execution or intended execution of this Act unless it is commenced within three months after the
act, neglect or default complained of, or in the case of a continuing act, neglect or default, within three months after the ceasing thereof; and

(b) no suit shall be commenced against the Resolution Fund, a member of the Board of Trustees or any person acting on behalf of the Resolution Fund before the expiration of one month after written notice of intention to commence the suit shall have been served upon the Board of Trustees by the intending plaintiff or his agent;
and the notice shall clearly and explicitly state the cause of action, the particulars of the claim, the name and place of abode of the intending plaintiff and the relief which the intending plaintiff claims.

(2) In any action or suit relating to the Resolution Fund no injunction or order in the nature thereof shall be issued against the Resolution Fund or any asset of the Resolution Fund; and no execution or attachment or processes in the nature thereof shall be issued against moneys standing to the credit of the Resolution Fund but any sums of money which may, by the judgment of a court, be awarded against the Resolution Fund, shall, subject to any directions given by the court where notice of appeal has been given by the Resolution Fund, be paid from moneys standing to the credit of the Resolution Fund.

(3) Neither the Resolution Fund, nor the Board of Trustees, nor any person engaged by the Resolution Fund or the Board of Trustees in connection with the performance of the functions of the Board of Trustees or the business of the Resolution Fund, shall be subject to any action, claim, or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance or in execution of, or in connection with the execution or intended execution of any power or function conferred upon the Board of Trustees.

(4) Every member of the Board of Trustees or agent for the time being of the Resolution Fund shall be indemnified out of the assets of the Resolution Fund against any liability incurred by him in defending any civil proceedings, if such proceeding is brought against him in his capacity as such member or agent. Provided that nothing in this Act shall be construed as entitling a member of the Board of Trustees to be indemnified against liability arising from the breach of the fiduciary or other duties imposed by the law.

Section 94 BOFIA 2020

Regulation of Resolution Fund

Without prejudice to the powers of the Bank to make regulations and to issue guidelines and directions under this Act, the Bank shall have power to make rules and regulations for giving effect to the provisions of this Part and without limitation, for regulating the management and operations of the Resolution Fund, and the proceedings of the Board of Trustees.

Section 74-84 Nigerian BOFIA 2020

Section 74-84 BOFIA 2020

Section 74 to 84 of the Bank and Other Financial Institutions Act 2020 is part of Part IX (RESOLUTION FUND AND RESOLUTION TOOLS) of the Act.

Section 74 BOFIA 2020

Establishment of banking sector resolution fund

(1) Without prejudice to the provisions of the Asset Management Corporation of Nigeria Act, there is hereby established a “Fund” to be known as the Banking Sector Resolution Fund (in this Act referred to as “Resolution Fund”) which shall be
domiciled with the Bank, and into which shall be paid all contributions and levies imposed under this Part:
Provided that the Governor shall with the approval of the Board, determine the date of commencement of the Fund (commencement date).

(2) The Resolution Fund shall not be subject to tax and accordingly, all moneys accruing to, payments made from, and instruments and transactions relating to, the Resolution Fund shall be exempt from all forms of taxes, levies, duties, charges or imposition howsoever described.

Section 75 BOFIA 2020

Contribution by Bank

(1) On the commencement date of the Resolution Fund, and on the first business day in each calendar year thereafter, the Bank shall pay into the Resolution Fund, the sum of N10,000,000,000 (Ten Billion Naira) or such amount as the Board of the Bank may, from time to time determine.

(2) For the purposes of making the payment required under subsection (1) of this section, the Bank shall appropriate the said sum of N10, 000,000,000 (Ten Billion Naira) or such amount determined by the Board of the Bank in pursuance
of subsection (1) of this section, from the general reserves or other funds of the Bank, and cause the sum so appropriated to be paid into the Resolution Fund in immediately available funds.

Section 76 BOFIA 2020

Contribution by the Corporation

At the commencement date, and thereafter, on the first business day in each calendar year, following the commencement date the Corporation shall pay into the Resolution Fund the sum of N4, 000,000,000 (Four Billion Naira) or such amount as
the Board of the Bank may from time to time determine.

Section 77 BOFIA 2020

Levy on banks, specialised banks and other financial institutions

There is hereby imposed with effect from the commencement date, on each bank, specialised bank and other financial institution in Nigeria, an annual levy, in an amount equivalent to ten (10) basis points (or such basis points as may from time to time be determined by the Bank) of its total assets as at the date of its audited financial statements for the immediately preceding financial year published pursuant to this Act, and which shall be payable on the commencement date, and on or before the 30th day of April in each subsequent calendar year following the commencement date.

Section 78 BOFIA 2020

Purpose of the resolution fund

The Resolution Fund shall be utilised exclusively for the following purposes-
(a) to pay the operating costs of a bridge bank;
(b) to pay the costs of transferring the whole or any part of the business at the bank, specialised bank or other financial institution pursuant to a resolution measure;
(c) to provide a loan, advance, overdraft or other credit facility to a bank, Specialised Bank or Other Financial Institution financial institution under resolution or a bridge bank;
(d) to pay any other costs reasonably incurred in the resolution measure, such as legal cost, cost of any advisory services, and the cost of an independent valuation of the bank, specialised bank or other financial institution under resolution;
(e) for such other purposes in support of resolution measure as may be prescribed by the Governor; and
(f) to pay expenses and costs specifically incurred for the administration and management of the Resolution Fund, up to an annual limit of an amount equivalent to 0.5 per cent of the total amount paid into the Resolution Fund for the calendar year in which the expense or cost is incurred.

Section 79 BOFIA 2020

Tax deductibility of annual levy and vested contributions

Any annual levy paid by a bank, specialised bank or other financial institutions in pursuance of this Act, shall be deductible for the purposes of the companies’ income tax of the paying bank, specialised bank or other financial institution, under the
Companies Income Tax Act.

Section 80 BOFIA 2020

Prohibition on payment of dividend and bonuses by defaulting eligible financial institution

A bank, specialised bank or other financial institution that is in default of payment of the levy imposed under this Act or any part thereof shall be prohibited from paying dividends or other like distribution to its shareholders, and from paying any bonuses however to its directors or employees, while such payment default continues.

Section 81 BOFIA 2020

Establishment and composition of Board of Trustees

There is established for the Resolution Fund, a Board of Trustees which shall consist of-
(a) two representatives of the Bank to be nominated by the Governor, one of whom shall be a Deputy Governor who shall appointed as the Chairman of the Board of Trustees;
(b) four representatives of banks to be appointed by the Bank from among officers of four banks not below the level of a director, on a 2-year rotational basis;
(c) representative, of the Corporation from among its officers not below the level of a director; and
(d) one representative from other financial institutions to be appointed by the Bank.

Section 82 BOFIA 2020

Duties and responsibilities of Board of Trustees

(1) The Board of Trustees shall be responsible for the supervision, administration and management of the Resolution Fund and shall discharge the following duties –
(a) collection of the contributions and levies levied under this Act as and when due;
(b) disbursement of moneys standing to the credit of the Resolution Fund;
(c) formulating investment policies for the Resolution Fund and causing moneys standing to the credit of the Resolution Fund to be invested in accordance with the provisions of this Bill; and
(d) performing other functions that are consistent with the purpose of the Resolution Fund as specified in this Act.

(2) The Board of Trustees may delegate any part of its responsibilities under this Act as it may deem fit and may appoint independent service providers, professional advisers and consultants for the performance of any of its functions and for running the Secretariat.

(3) In the discharge of their responsibilities and duties, members of the Board of Trustees shall be deemed to stand in a fiduciary relationship with the Bank, the Corporation, banks, specialised banks, and other financial institutions and shall act with due care and skill, in utmost good faith.

Section 83 BOFIA 2020

Tenure, cessation of membership, and casual vacancy

(1) Subject to subsection (2) of this section, members of the Board of Trustees, except the members nominated by banks, and other financial institutions, shall hold office for as long as they continue to hold the office by virtue of which they were appointed to the Board of Trustees.

(2) A member of the Board of Trustees shall cease to hold office as such member if such person ceases for any reason howsoever to hold the office by reason of which such person holds membership of the Board of Trustees.

(3) If a vacancy occurs as a result of the death, resignation, retirement, disqualification or removal of a member of the Board of Trustees, the entity or entities that such member represents on the Board of Trustees shall nominate another of its members to fill the vacancy so occasioned, for the remainder of the term of office of the member whose death, resignation, retirement, disqualification or removal occasioned the vacancy.

Section 84 BOFIA 2020

Secretariat of the Board of Trustees

(1) There is hereby established for the Board of Trustees, a Secretariat which shall situate at the head office of the Bank, or such other place as the Bank may determine, and shall be staffed by such number of persons to be seconded from the Bank or any of the other institutions on which a levy or contribution is levied under this Part of this Act as the Board of Trustees may from time to time determine.

(2) The Secretariat shall have such functions as are, from time to time, prescribed by the Board of Trustees.

Section 63-73 Nigerian BOFIA 2020

Section 63-73 BOFIA 2020

Section 63 to 73 of the Bank and Other Financial Institutions Act 2020 is under Part VIII (OTHER REGULATORY POWERS OF THE BANK) of the Act.

Section 63 BOFIA 2020

Risk-based capital requirements

(1) The Bank may, by notice in writing, require any bank, specialised bank or other financial institutions to maintain capital funds of such amount (not being less than the minimum prescribed in section 9 as the case may be) and in such manner as the Bank considers appropriate, having regard to the risks arising from the activities of the bank, specialised bank or other financial Institution, and such other factors as the Bank may consider relevant.

(2) Without limiting the generality of sub-section (1) of this section, a notice by the Bank, may prescribe —
(a) the appropriate level (which may be expressed in the form of a ratio) and quality of capital that is commensurate with the type and concentration of risk of the bank, specialised bank or other financial institution;
(b) the manner and process for calculating the level or quality of capital of the bank, specialised bank or other financial institution;
(c) the internal processes of each bank, specialised bank or other financial institution in assessing the adequacy of its level and quality of capital, having regard to the risks arising from the activities of the bank, specialised bank or other financial institution may consider relevant;
(d) the reports to be submitted by each bank, specialised bank or other financial institution; and
(e) restrictions on the distributions by a bank, specialised bank or other financial institution of dividends, bonuses, commissions, payments as a result of a buyback of shares, and any other payment, in the event that it fails to maintain the level or quality of capital prescribed under sub-section (1) of this section

(3) The Bank may, if it considers appropriate in a particular circumstance, having regard to the risks arising from the activities of a bank, specialised bank or other financial institution and such other factors as the Bank considers relevant, vary any capital adequacy requirement imposed by a notice under section 9 of this Act by a notice on that bank, specialised bank or other financial institution.

(4) Without prejudice to subsection (3) of this section, the Bank may restrict or suspend the operations of a bank, which fails to comply with a notice under this section.

(5) A bank, specialised bank or other financial institution which fails to comply with a notice under this section or any restriction or suspension imposed by the Bank under subsection (4) of this section, shall be liable to a penalty of not less than N2,000,000 and an additional penalty of not less than N50,000 for every day during which such failure continues.

Section 64 BOFIA 2020

Consolidated supervision

(1) The Bank may, by regulations, prescribe the framework for the exchange of information among regulators of entities related to, associated with, or otherwise affiliated to banks, specialised bank or other financial institutions.

(2) The Bank may, from time to time, cause an examination to be carried out by an examiner appointed by it, in writing, of the books, accounts and records of any bank, specialised bank, other financial institution and entities associated with or otherwise affiliated to the bank, specialised bank or other financial institution as the case may be.

(3) When an examination is conducted pursuant to subsection (2) of this section, the institution concerned and every officer and employee thereof shall produce and make available to the person conducting the examination all the books, accounts, records and other documents of the institution and such correspondence, statements and information relating to the institution, its business and the conduct thereof as the person conducting the examination may require and failure to produce any books, accounts, records, documents, correspondence, statements or information shall constitute a contravention of the provisions of this Act.

(4) The examiner may make copies of any books, accounts and other documents required for the purposes of the examiner’s report; and (c) all information obtained in the course of the examination shall be treated as confidential and used solely for the purposes of this Act.

(5) The examiner shall submit the examiner’s report to the Bank drawing attention to any breach or non-observance of the requirements of this Act and any regulations made thereunder, any irregularity in the manner of conduct of the business of the entity any mismanagement of the business or lack of management skills the institution and any other matter revealed or discovered in the course of the examination warranting, in the opinion of the examiner, remedial action or further investigation.

(6) For purposes of this Act, the Bank shall be the coordinator of the consolidated supervision of a group to which a regulated entity belongs, and as such may appoint a competent authority from any other entity or entities with expertise in the relevant field to carry out an inspection of the operations of the associated, holding or subsidiary company of a bank, specialised bank or other financial institution, or of any person who exercises control over such institution, in order to satisfy itself that the operations of such associated company are not detrimental to the operations of the bank, specialised bank or other financial institution concerned.

(7) The Bank may upon receipt of a report under the preceding section require changes to the legal or management structure of a group or banking group if it determines that such structures in their current form constitute an impediment to the discharge of the Bank’s supervisory functions; and require a group or banking group to retain a single auditor to provide an overall review of the group or banking group, including the preparation of consolidated financial statements as the Central Bank may prescribe.

Section 65 BOFIA 2020

Competition

(1) The provisions of the Federal Competition and Consumer Protection Act shall not apply to:
(a) any function, act, financial product, or financial services issued or undertaking, and transaction howsoever described by a bank or other financial institutions licensed by the Bank; and
(b) the Bank, the Governor, or other executive officer or staff of the Bank.

(2) Notwithstanding anything to the contrary in this Act but subject to subsection (3) of this section, sections 92 (1), (2) and (3), 94 and 98 of the Federal Competition and Consumer Protection Act (FCCPA) shall apply to a merger, acquisition or other form of business combination which involves a bank, specialised bank or other financial institution.

(3) All references to the Federal Competition and Consumer Protection Commission in Sections 92 (1), (2) and (3), 94 and 98 of the Federal Competition and Consumer Protection Act, shall be deemed Competition. and construed as a reference to the Bank.

(4) Notwithstanding anything to the contrary in this section, the Governor shall have the power to prescribe additional or other rules and procedures for mergers, acquisitions and other business combinations involving banks, specialised
banks and other financial institutions.

Section 66 BOFIA 2020

Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT)

(1) All banks, specialised banks, and other financial institutions shall adopt policies stating their commitments to comply with Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) obligations under subsisting laws, regulations and regulatory directives and to implement internal control measures to prevent any transaction that facilitates criminal activities, money laundering or terrorism.

(2) Notwithstanding anything to the contrary in this Act or in any other enactment, the Governor shall have power to issue Regulations, guidelines and policies from time to time to fight money laundering and combat the financing of terrorism
for banks and other financial institutions, in line with international best practices and standards.

(3) The Governor shall have power to liaise with relevant bodies in other countries with similar objectives for the purposes of sharing information and relevant data that would aid the fight against money laundering and combat the financing
of terrorism.

Section 67 BOFIA 2020

Corporate governance and ethics

(1) The Governor shall have power to issue regulations and guidelines for or with respect to –
(b) the corporate governance, including the appointment of principal officers, of banks and other financial institutions in Nigeria, their affiliates or other entities in which the banks and other financial institutions acquires or holds, directly or indirectly, a major stake;
(b) the prohibition or restriction on mutual holding of shares or other interests between banks, specialised banks and other financial institutions, related corporations or other entities; and
(c) the risk management of banks, specialised banks and other financial institutions.

(2) Regulations made pursuant to this section may relate to all, or any class, category or description of persons or banks and other financial institutions, and may specify different provisions for different classes, categories or descriptions of persons banks and other financial institutions or a particular person or bank and other financial institution or of general or specifically limited application.

Section 68 BOFIA 2020

Cybersecurity regulation by the Bank

(1) The Bank may issue regulations and guidelines to banks, specialised bank or other financial institutions to address cybersecurity issues in the delivery of financial or banking services.

(2) All banks, specialised bank or other financial institutions shall comply strictly with the cybersecurity regulations and guidelines issued by the Bank pursuant to subsection (1) of this section.

(3) Any officer of a bank, specialised bank or other financial institution who, through an action or omission, fails to comply with subsection (2) above, shall be liable to a penalty of not less than N2,000,000 and an additional penalty of N50,000 for each day during which such failure occurs.

Section 69 BOFIA 2020

Standard for payment, settlement and clearance activities

(1) Subject to the provisions of this Act, the Bank may, by regulation, prescribe the administration and standards, governing the operations relating to the payment, clearing, and settlement activities of banks, specialized banks or other financial institutions, taking into consideration existing prudential requirements and relevant international standards.

(2) The term ‘‘payment, clearing, and settlement activity’’ means an activity carried out by one or more financial institutions to facilitate the completion of financial transactions, but shall not include any offer or sale of a security under the Investment and Securities Act 2007.

Section 70 BOFIA 2020

Designation of systemically important banks

(1) The Bank shall by regulation prescribe the assessment criteria for designating systemically important banks or such other designation as the Governor may from time to time determine, and the policy measures, considered appropriate, to address the risks posed by such designated banks including liquidity standards, stress testing requirements, recovery and resolution plan, enhanced supervision, and disclosure requirements.

(2) The Governor may in furtherance of subsection (1) of this section, designate any bank as a systemically important bank or such other designation as the Governor may specify and a bank so designated shall be obliged to immediately apply and comply with the standards and requirements of a systemically important bank as may be prescribed by the Bank pursuant to subsection (1) of this section.

(3) Any bank which fails to comply with any of the policy measures in the guidelines issued by the Bank pursuant to this section is, in respect of each such failure, liable to a penalty of not less than N5,000,000 and an additional penalty of N200,000 for each day during which such failure occurs.

(4) The Bank in taking any resolution measures in connection with a failing systemically important bank or any failing bank, may request for the cooperation of any government agency or corporation in Nigeria, with regulatory oversight in respect of such failing bank or whose mandate would be impacted by the resolution measures and such government agency or corporation shall be obligated to cooperated with the Bank.

Section 71 BOFIA 2020

Restriction on operations of Agents of banks

(1) The Bank may by guidelines, regulate the operations of agents of banks.

(2) An agent shall not–
(a) accept any withdrawals by cheque; or be a direct member of the Nigeria Bankers Clearing System; or
(b) accept any deposit above an amount which shall be prescribed, from time to time, by the Bank;

(3) For the purpose of this section, “agent” means a person, or an entity contracted by an institution and approved by the Bank to provide the services of the bank on behalf of the bank, in such manner as may be prescribed by the Bank:

(4) Any agent which acts in contravention of or fails to comply with any of the provisions of this section is guilty of an offence and liable to a fine of not less than N50,000 and an additional fine of N5,000 for each day during which such
failure occurs.

Section 72 BOFIA 2020

Unclaimed funds/ abandoned property

(1) Where a current or savings account has not been operated for a period of one year or such other period as the Bank may specify, from time to time no withdrawal shall be made on the account except with the approval of two authorised signatories of the bank, specialised bank, or other financial institution involved.

(2) The account referred to in subsection (1) of this section shall be transferred to a separate register of dormant accounts and remain deposit liabilities in the books of the bank, specialised bank or other financial institution and the bank, specialised bank, or other financial institution shall immediately notify the account holder by electronic email and in writing at the account holder’s last known address, informing him of the dormancy of the account.

(3) Where an account which is transferred under subsection (2) of this section is subject to a service charge the charge may continue to be levied up to the date on which the account was transferred to the register of dormant accounts.

(4) Where an account which is transferred under subsection (2) of this section is interest bearing, interests shall be applied to the account up until the time when the balance is transferred to the Bank in accordance with subsection (8) of this section.

(5) Where an account is transferred to the register of dormant accounts and has been on the register for ten years, the bank, specialised bank or other financial institution shall advertise in at least two daily newspapers with national circulation, giving notice that the account has been transferred to the register of dormant accounts.

(6) Each bank, specialised bank or other financial institution shall submit to the Bank quarterly reports on all dormant accounts stating the efforts made by the bank, specialised bank or other financial institution to locate the account holders.

(7) An account which has been transferred under subsection (2) of this section may only be transferred out of the register following a request by the depositor or the legal representative of the depositor, where such depositor is dead or incapacitated, once all necessary identification and evidence of account ownership have been established by the bank, specialised bank or other financial institution.

(8) Where an account has been in the register of dormant accounts for 10 years, the bank, specialised bank or other financial institution shall after the advertisement under subsection (5) of this section, transfer the balance on the account including the interest earned to an account earmarked for that purpose at the Bank.

(9) Where a balance has been transferred under subsection (8) of this section, the Bank shall refund the balance to the depositor, or if the depositor is deceased, to the legal representative of the depositor’s estate, once the Bank is satisfied that the claimant is the owner of the funds requested.

(10) The Bank shall invest the funds deposited with it pursuant to subsection (8) of this section, in treasury bills or other securities as the Bank may determine and interest accrued on any such sums shall be payable to any claimant pursuant to subsection (9) of this section.

(11) The Bank shall issue guidelines on the administration of unclaimed funds in banks, specialised banks and other financial institutions pursuant to the provisions of this Act.

Section 73 BOFIA 2020

Avoidance of pre-liquidation transfers

(1) The liquidator of a bank, specialised banks and other financial institutions may set aside the following transactions affecting the assets of the bank, specialised banks and other financial institutions and recover the assets from the transferee or other beneficiary of the transaction-
(a) gratuitous transfers to, or to persons related to, affiliates, insiders or key management personnel of the bank, specialised banks and other financial institutions made within five (5) years prior to the effective date of the
liquidation;
(b) transactions with affiliates, insiders or key management personnel of the bank, specialised banks and other financial institutions conducted within five (5) years prior to the effective date of the liquidation, if detrimental to the interest of depositors and other creditors.
(c) gratuitous transfers to third parties made within three (3) years prior to the effective date of the liquidation;
(d) transactions in which the consideration given by the bank considerably exceeded the received consideration, made within three (3) years prior to the effective date of the liquidation;
(e) a transaction based on a forged or fraudulent document that the bank, specialised banks and other financial institutions has executed to the detriment of creditors
(f) any act done with the intention of all parties involved to withhold assets from the creditors of the bank, specialised banks and other financial institutions or otherwise impair their rights, within five (5) years prior to the effective date of the liquidation;
(g) transfers of property of the bank specialised banks and other financial institutions to, or for the benefit of, a creditor on account of a debt incurred within one (1) year prior to the effective date of the liquidation which has the effect of increasing the amount that the creditor would receive in a liquidation of the bank, specialised banks and other financial institutions provided, however, that payment of deposits otherwise than by the transfer of property of the bank (other than money), specialised bank or other financial institution shall not be subject to
this provision; and
(h) any attachment or security interest, except one existing six (6) months prior to the effective date of the liquidation.

(2) Any action to set aside a transfer pursuant to subsection (1) of this section under this section shall be taken by the liquidator within one (1) year following the effective date of the liquidation.

(3) Notwithstanding the provisions of this section, the liquidator may not set aside a payment or transfer by a bank, specialised bank or other financial institution if it was made in the ordinary course of business, or if it was part of a contemporaneous exchange for reasonably equivalent value, or to the extent that following the transfer the recipient extended new unsecured credit to the bank, specialised bank or other financial institution which had not been satisfied by the bank, specialised bank or other financial institution as of the effective date of the liquidation.

(4) The liquidator may recover property or the value of property transferred by the bank, specialised bank or other financial institution from a transferee of an initial transferee only if the second transferee did not give fair value for the property and knew or reasonably should have known that the initial transfer could be set aside under this Act.

(5) The liquidator may order that notice of an action to set aside a transfer be recorded in the public records for real estate ownership and any other rights in property and a person taking title to or acquiring any security interest or
other interest in such property after the filing of such a notice takes his title or interest subject to the rights of the bank, specialised bank or other financial institution to recover the property.

Section 57-62 Nigerian BOFIA 2020

Section 57-62 BOFIA 2020

Section 57, 58, 59, 60, 61, and 62 of the Bank and Other Financial Institutions Act 2020 is under Part VII (ESTABLISHMENT OF SPECIALISED BANKS AND OTHER FINANCIAL INSTITUTIONS) of the Act.

Section 57 BOFIA 2020

Prohibition of Unlicensed Financial Institutions

(1) Without prejudice to the provisions of Chapter A of this Act, no person shall carry on specialized banking or business of other financial institution in Nigeria other than insurance, pension fund management, collective investment schemes and capital market business as defined respectively in the Insurance Act, the Pension Reform Act and the Investment and Securities Act except it is a company duly incorporated in Nigeria and holds a valid license granted under the provisions of this Act.

(2) In this section, “business of other financial institutions” include: business of a discount house, bureau de change, credit bureau, finance company or money brokerage,, international money transfer services, mortgage refinance company, mortgage guarantee company, credit guarantee, financial holding company or payment service providers and businesses whose objects include factoring, project financing, equipment leasing, debt administration, private ledger services, investment management, local purchases order financing, export finance, and such other business as the Bank may from time to time, designate, regardless of whether such businesses are conducted digitally, virtually or electronically only.

(3) Any person or institution which, before the commencement of this Act was carrying on any business of other financial institution, shall apply in writing to the Bank for a licence within 3 months of the date of commencement of this Act.

(4) Any person which fails to apply as provided in subsection (3) of this section, or who so applies and is not granted a licence within 3 months of such application shall cease to carry on such business of other financial institutions.

(5) Any person who conducts or is involved in conducting the business of other financial institutions without a valid licence in contravention of subsections (1) or (4) of this section is guilty of an offence and liable on conviction –
(a) in the case of a body corporate, to a fine of not less than N10,000,000 and an additional fine of not less than N200,000 for each day during which the infraction continues; and
(b) in any other case, to imprisonment for a term of not less than 5 years, or a fine of not less than N2,000,000 and an additional fine of not less than N50,000 for each day during which the infraction continues or to both such imprisonment and fine.

Section 58 BOFIA 2020

Application for licence

(1) Any person wishing to carry on the business of other financial business other than insurance and stock broking and pension fund management in Nigeria shall apply in writing to the Bank for the grant of a licence and shall accompany the application with the following:
(a) a feasibility report for the proposed financial business including the financial projections for at least 5 years;
(b) a draft copy of the memorandum and articles of association of the proposed financial business;
(c) such other information, documents and reports as the Bank may, from time to time, specify; and
(d) the prescribed non-refundable application fee

(2) After the applicant has provided all such information, documents and reports as the Bank may require under subsection (1) of this section, the Bank may grant the licence with or without conditions or refuse to grant the licence.

(3) Where a licence is granted, the Bank shall give written notice of that fact to the applicant and the licence fee shall be paid.

(4) The Bank may vary or revoke any conditions subject to which a licence was granted or may impose fresh or additional conditions to the grant of a licence.

(5) Any person who transacts a business without a valid licence under section 58 of this Act whether in the case of an individual or in the case of a body corporate is guilty of an offence and liable on conviction to imprisonment for a term of not less than 3years or a penalty of the higher of N10, 000,000 or two times the cumulative amount collected or both such imprisonment or fine.

Section 59 BOFIA 2020

Failure to comply with conditions of licence, etc.

(1) Any person who fails to comply with any of the conditions of a licence granted pursuant to section 58 shall be liable to a penalty of not less than N2,000,000 and an additional penalty of not less than N50,000 for each day during which the infraction continues.

(2) Every person carrying on any financial business referred to in Section 57 of this Act shall —
(a) comply with the monetary policy directives and other guidelines as the Bank may, from time to time, issue; and
(b) furnish within the stipulated time, any statistical and other returns as the Bank may, from time to time, require.

(3) Any person who fails to comply with the provisions of subsection (2) of this section is liable to a penalty of not less than N2,000,000 and an additional penalty of not less than N50,000 for each day during which such failure occurs.

(4) Any person who, being a director, manager or officer of a specialised bank or other financial institution, fails to take reasonable steps to secure compliance with any of the conditions of the licence of the bank is guilty of an offence and liable on conviction to imprisonment for a term of not less than 3 years or a fine of not less than N2, 000,000 and an additional penalty of N50, 000 for each day during which the infraction continues or to both such imprisonment and fine.

(5) Failure to comply with the guidelines or other directives of the Bank or refusal to supply returns in the prescribed form may be a ground for the revocation of a licence granted under this Act

Section 60 BOFIA 2020

Supervisory power of the Bank over other financial institutions and specialised banks

(1) Without prejudice to the provisions of sections 31 and 32 of this Act the Bank shall have power to(
(a) supervise and regulate the activities of other financial institutions and specialised banks;
(b) prescribe the minimum paid-up share capital requirement of other financial institutions and specialised banks.
(c) appoint examiners or any other person to carry out regular or routine examination of the books and affairs of specialised banks and other financial institutions.

(2) The Bank may appoint examiners and any other person to carry out regular or routine examination of the books and affairs of other financial institutions and specialised banks.

(3) Where the Governor is satisfied that it is in the public interest so to do, such person may, in addition to the routine or regular examination, order a special examination or investigation of the books and affairs of any other financial institution or specialised bank and for that purpose, the Governor shall have power to appoint one or more qualified persons other than the officers of the Bank to conduct special examination or investigation, under conditions of confidentiality of the books and affairs of such other financial institution or specialised bank .

(4) The cost and expenses of the Bank or the remuneration of the person so appointed, as the case may be, shall be payable from the fund and property of the other financial institution or or specialised bank.

(5) For the purpose of implementation of this section, other financial institutions and specialised banks shall be treated in the same manner as banks with respect to the requirements of section 23 of this Act.

Section 61 BOFIA 2020

Application of Chapter A

(1) Without prejudice to the foregoing provisions of this part, the provisions of Chapter A of this Act including all its offences, penalties and the powers of the Bank shall apply with such necessary modifications to specialised banks and other financial institutions.

(2) No person or authority other than the Bank shall as from the coming into force of this section exercise any regulatory or supervisory authority over specialised banks and other financial institutions.

(3) The Governor shall have power to appoint such expert or experts on non-interest banking or to constitute a panel of such experts to advice the Bank on matters of non-interest banking, as the Governor may from time to time
determine.

Section 62 BOFIA 2020

Management and control of failing specialised banks and other financial institutions

(1) Where the Bank is satisfied that a specialised bank or other financial institution is in a grave situation, the Governor may by order in writing exercise any one or more of the powers specified in section 34 of this Act.

(2) The Bank may grant advances to non-interest banks in a grave situation or which the Bank otherwise determines requires liquidity support on such terms other than as to interest as the Bank may deem fit.

(3) If after taking such of the steps stipulated in subsection (1) of this section or such other measures as in the opinion of the Bank may be appropriate in the circumstance, the state of affairs of the specialised bank or other financial institution concerned does not improve, the Bank shall have power to revoke the licence of such specialised bank or other financial institution.

(4) Any specialised bank or other financial institution whose licence is revoked pursuant to subsection (1) of this section shall be wound up by the Corporation or a person appointed by the Bank.

(5) The cost and expenses of the Bank or the remuneration of the person so appointed pursuant to subsection (1) of this section shall be payable from the fund and property of the specialised bank or other financial institution concerned.

Section 49-56 Nigerian BOFIA 2020

Section 49-56 BOFIA 2020

Section 49, 50, 51, 52, 53, 54, 55, and 56 of the Bank and Other Financial Institutions Act 2020 is under Part VI (MISCELLANEOUS MATTERS) of the Act.

Section 49 BOFIA 2020

Offences by Directors and Managers of banks

Any person, being a director, manager or officer of a bank, who fails to —
(a) take all reasonable steps to secure compliance by the bank with the requirements of this Act; or
(b) take all reasonable steps to secure the correctness of any statement submitted under the provisions of this Act, is guilty of an offence and liable on conviction to a fine not less than N2, 000,000 or imprisonment for a term of not less than 3 years or to both such fine and imprisonment and in addition the Governor may suspend or
remove from office or blacklist any such officer, manager or director.

Section 50 BOFIA 2020

Penalties for offences not otherwise provided for

Any bank, specialised bank, other financial institution, or any person who contravenes or fails to comply with any of the provisions of this Act or any regulations made thereunder for which an offence or penalty is not expressly provided is guilty of an infraction and liable to a fine or penalty of not less than N2,000,000.

Section 51 BOFIA 2020

Protection against adverse claims

Neither the Federal Government nor the Bank nor any officer of the Federal Government or the Bank, shall be subject to any action, claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance or in execution of, or in connection with the execution or intended execution of any power conferred upon that Government, the Bank or such officer, by or under this Act or the CBN Act or any rules, regulations, guidelines or directives
issued thereunder or pursuant to any other relevant laws.

Section 52 BOFIA 2020

Jurisdiction of the Federal High Court

Notwithstanding the provisions of this Act or of any law, the Federal High Court shall have jurisdiction to try any offence under this Act and to impose the full penalty prescribed thereof.

Section 53 BOFIA 2020

Application of Companies and Allied Matters Act, etc.

(1) The provisions of this Act shall apply notwithstanding the provisions of the Companies and Allied Matters Act, the Nigeria Deposit Insurance Corporation Act, Federal Competition and Consumer Protection Act, Nigerian Financial Intelligence Unit Act, Federal Mortgage Bank of Nigeria Act, Mortgage Institutions Act, Nigerian Export-Import Bank Act and other applicable laws, in so far as they relate to banks, other financial institutions and specialised banks.

(2) Where any of the provisions of the Acts mentioned in subsection (1) of this section or any other law or enactment is inconsistent with any of the provisions of this Act, the provisions of this Act shall prevail.

Section 54 BOFIA 2020

Netting

(1) Notwithstanding the provisions of this Act or anything to the contrary in the Companies and Allied Matters Act, any other law, subsidiary legislation, rule, procedure or practice, where the licence of a bank or other financial institution is
revoked pursuant to the provisions of this Act or is wound up by an order of a court of competent jurisdiction, or a liquidator is appointed for the bank or other financial institution, any provision contained in a written netting agreement to which the bank or other financial institution is a party, or any netting rule or practice applicable to the bank or other financial institution, shall be binding upon the liquidator in respect of –
(a) any payment or settlement instruction which has been delivered to another bank or other financial institution, a service provider or to the Bank prior to the revocation, winding up order, or appointment of the liquidator and
which instruction –
(i) is subject to calculation and determination through clearing or netting; or
(ii) may result in a payment or settlement obligation, which obligation is to be discharged on or after the date of the revocation, the winding-up order, or appointment of the liquidator, or the discharge of which was overdue on the date of the winding-up order, or appointment of the liquidator, as the case may be;
or
(b) any payment or settlement obligation –
(i) which has been determined through netting prior to the revocation, the issue of the winding-up order or
appointment of the liquidator; or
(ii) which is to be discharged on or after the date of the revocation, the winding-up order, appointment of the liquidator, or the discharge of which was overdue on the date of the winding-up order, appointment of the liquidator.

(2) Notwithstanding anything to the contrary in the Companies and Allied Matters, any other law, subsidiary legislation, rule, procedure or practice, any asset of a bank or other financial institution which the bank or other financial institution, prior to the revocation or issue of its winding-up order, has provided –
(a) to the Bank or any other bank, other financial institution or any person as security for a loan in respect of its settlement obligation, may be utilised by the Bank to the extent required for the discharge of that settlement obligation; or
(b) in terms of a written agreement with a service provider, to the service provider as security in respect of its payment obligation, may be utilised by the service provider to the extent required for the discharge of that
payment obligation.

Section 55 BOFIA 2020

Priority of deposit liabilities

Where a bank is unable to meet its obligations or suspends payment or where its management and control has been taken over by the Bank or where its licence has been revoked pursuant to the provisions of this Act, the assets of the bank shall be
available to meet all the deposit liabilities of the bank and such deposit liabilities shall have priority over all other liabilities of the bank.

Section 56 BOFIA 2020

Power to make regulations

(1) The Governor may make regulations, published in the Gazette or in any other medium, pursuant to the objects and objectives of this Act.

(2) Without prejudice to the provisions of subsection (1) of this section, the Governor may make rules and regulations for the operation and control of all institutions under the supervision of the Bank.