Authors: Kofo DosekunOludare Senbore
Publisher: Practical Law Global Guides (May 2017)

 

Overview

This Banking Regulation guide provides a high level overview of the governance and supervision of banks, including legislation, regulatory bodies and the role of international standards, licensing, the rules on liquidity, foreign investment requirements, liquidation regimes and recent trends in the regulation of banks.

 

Legislation and Regulatory Authorities

Legislation

1.   What is the legal framework for banking regulation?

The primary legislation for the regulation of banks in Nigeria is the Banks and Other Financial Institutions Act (BOFIA) which, with the Central Bank of Nigeria (Establishment) Act 2007 (CBN Act), gives the Central Bank of Nigeria (CBN) powers to supervise and regulate banks and other financial institutions in Nigeria.

Other relevant legislation includes the:

  • Companies and Allied Matters Act (Cap 59, Laws of the Federal Republic of Nigeria 1990 (CAMA)), which regulates companies generally.
  • Nigerian Deposit Insurance Corporation Act, which is responsible for insuring all deposit liabilities of licensed banks.
  • Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, which established the Autonomous Foreign Exchange Market and provides the regulatory framework for foreign exchange transactions in Nigeria.

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