- To introduce Credit Tribunal for loan recoveries
President Muhammadu Buhari yesterday assented to the Banks and Other Financial Institutions (BOFI) Act 2020.
According to an issued statement by Presidential Spokesman, Garba Shehu, the 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.
This latest piece of legislation repeals the extant BOFI Act 1991 as amended, updating the enabling law in response to developments and significant evolution in the financial sector over the last two decades.
Analysts say 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 introduced a credit tribunal to deal with issues of bad debt and loan recovery in the country, which has been a key deterrent to lending by financial institutions.
The new law repeals the extant BOFI Act 1991 (as amended) and is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy. The Act also updates the enabling law in response to developments and significant evolution in the financial sector over the last two decades.
“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”, said the media aide of President Buhari, Garba Shehu.
