The Senate has passed the Bill to repeal the Banks and Other Financial Institutions Act CAP B3 Laws of the Federation of Nigeria 2004 and to re-enact the Banks and Other Financial Institutions Act CAP B3 Laws of the Federation of Nigeria 2004 (Amendment) Bill, 2020.
The Central Bank of Nigeria disclosed this on Wednesday in a statement titled ‘Senate passes bill to reenact BOFIA.’
The CBN said the bill went through normal legislative processes, which started with the sponsors presenting the Bill for first reading on May 12, 2020 and a second reading on May 19, 2020.
It said following the debate by the Senate at the plenary, the bill was referred to the Senate Committee on Banking, Insurance and Other Financial Institutions for further legislative actions.
The statement said, “Wednesday’s passage of the bill, after a clause by clause consideration by the Senate at its plenary followed the public hearing by the Senate Committee on Banking, Insurance and Other Financial Institutions on Wednesday, July 15, 2020.”
It said the committee considered the opinions of stakeholders such as the CBN, the Federal Ministry of Finance, the Body of Bank CEOs and the Nigeria Deposit Insurance Company.
The statement said in addition to strengthening the Nigerian financial system, the bill sought to regulate banking and businesses of other financial institutions by prohibiting the carrying on of such businesses in Nigeria, except under licence and by a company incorporated in Nigeria.
It said the Bill also made adequate provisions for proper licensing, supervision and revocation of licences of such institutions by the CBN.
The CBN noted that for the Bill on BOFIA CAP B3 Laws of the Federation of Nigeria 2004 (Amendment) Bill, 2020 passed by the Senate to become law, it had to be similarly passed by the House of Representatives, after which the reports would be harmonised and forwarded to the President for assent.