Enter Credit Tribunal As Buhari Okays BOFIA 2020
CBN to engage stakeholders on effective implementation
BY COBHAM NSA, ABUJA – Excitement has taken the centre stage in the nation’s financial sector as President Muhammadu Buhari assented to the Banks and Other Financial Institutions Act (BOFIA) 2020 on Friday, November 13, 2020.
And a key highlight of this amended Act is the planned Credit Tribunal meant to improve loan recovery and address high incidence of Non-Performing Loans (NPLs) in the system.
With the development, hopes are up high about the financial system being guaranteed the integrity and dynamism required to engender sustainable economic growth and development in the country.
A statement by presidential spokesman, Mallam Garba Shehu described the amended Act as a “monumental piece of legislation” crafted to strengthen “the regulatory and supervisory framework for the financial industry.”
He also said the new law will provide “additional tools for managing failing institutions and systemic distress to preserve financial stability amongst”
The full statement by Garba Shehu captioned, “PRESIDENT BUHARI ASSENTS TO BANKS AND OTHER FINANCIAL INSTITUTIONS ACT 2020” read thus:
“President Muhammadu Buhari on Thursday, November 12, 2020 assented to the Banks and Other Financial Institutions Act 2020.
“It repeals the extant Banks and Other Financial Institutions Act 1991 as amended.
“This monumental piece of legislation is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy.
“The BOFI Act 2020 updates the enabling law in response to developments and significant evolution in the financial sector over the last two decades.
“It will increase the appetite of banks and other financial institutions to channel much needed credit to the real sector to support economic recovery and promote sustainable growth.
“In this respect, it introduces a credit tribunal to improve loan recovery and address the incidence of high Non-Performing Loans within the financial system, which has been a key deterrent to lending by financial institutions.
“Furthermore, it strengthens the regulatory and supervisory framework for the financial industry and provides additional tools for managing failing institutions and systemic distress to preserve financial stability amongst others.
“The Central Bank of Nigeria will hold structured engagements with stakeholders across various sectors of the economy on critical aspects of the Act in the coming months.
“This enactment of the BOFI Act 2020 is a historic and significant achievement, which is indicative of effective and productive collaboration between the Executive and Legislature arms of Government.”
Garba Shehu
Senior Special Assistant to the President
(Media & Publicity)
November 13, 2020
