President Muhammadu Buhari has assented
to the Banks and Other Financial Institutions Act 2020.
Garba Shehu, the presidential
spokesman, made the announcement in a statement on Friday,
The Act repeals the extant Banks and
Other Financial Institutions Act 1991 as amended.
The legislation is expected to enhance
the resilience of the financial system for the growth of the Nigerian economy.
It updates the enabling law in response
to developments and significant evolution in the financial sector.
The Presidency said the Act will
increase the appetite of banks and other financial institutions to channel
credit to the real sector.
It also introduces a credit tribunal to
improve loan recovery.
Furthermore, the legislation addresses
the incidence of high non-performing loans within the financial system.
Act strengthens the regulatory and supervisory framework for the financial
provides additional tools for managing failing institutions and systemic
distress to preserve financial stability.
Central Bank of Nigeria (CBN) will meet stakeholders across various sectors to
discuss critical aspects of the Ac