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made under Act 24 of , Act 11 of and Act 23 of The. Central Bank accepts no liability for any loss arising of its use. The updated version of the Act. The Aftermath of the Financial Crisis Y. Makanjuola Other Financial Institutions Act (BOFIA), the CBN governor could not exercise powers both to remove. 30 Apr. 31 Dec. 30 Apr. N’ N’ N’ . of these accounts in accordance with Section 27(5) of BOFIA (as.

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A further rationale for the Act was to ensure that banks and other financial institutions played their primary role of financial intermediation effectively. The bank has made depositors of the failed banks it acquired happy and smiling. He consequently removed their managing directors and executive directors and appointed replacements.

It relied on the decision in Ndoma Egba v Chukwuogor. Umar further called on the bank to look at ways of improving its shareholders’ fund to be in the region of trillion naira. To find out more, including how to control cookies, 2090 here: The ruling was not the first time that the CBN would be receiving a judicial imprimatur on banks in the country. Martin Anyanwu a multi-sectoral sales, Marketing and Advertising guru with almost 2 decades experience garnered in reputable institutions including Nigerian Breweries- the Heineken Affililiate company in Nigeria.

This entry was posted in Uncategorized. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. These changes have been influenced largely by challenges posed by deregulation of the financial sector, globalization of operations, technological innovations and adoption of supervisory and prudential requirements that conform to international standards.

Nigeria: Bofia – CBN’s Powers Get Court Affirmation –

They were accused of insider abuse and other offences ranging from recklessly granting loans totalling N billion that had gone bad. He held that since documentary evidence available before him showed that 2009 PHB had non-performing loans of N billion, with its liquidity ratio below 25 per cent and was showing signs of a failing bank in dire need of capital, this made the intervention of the 0209 bank imperative.

We commend the Board and Management for this feat.

Martin, will take over effective 1st February, from Mrs. The court agreed that while “or” was generally construed disjunctively, there are instances where it is necessary to read and in place of or, and vice versa in order to carry out the intention of the legislature, and avoid absurd or impractical results.


The focus here shall be the legal and regulatory requirements as it relate to financial statements of banks and other financial institutions. AllAfrica publishes around reports a day from more than news organizations and over other institutions and individualsrepresenting a diversity of positions on every topic.

At the end of the paper, bofi reader and examiner will be convinced that these provisions have been logically laid out as succinctly as possible to serve the purpose intended. Diversification of the productive base boofia the economy remains a fundamental challenge of economic management, and banks will increasingly be challenged to become more innovative bofa their intermediation function, and especially to increase financing to the productive sectors.

Articles and commentaries that identify allAfrica. Leave a Reply Cancel reply Enter your comment here The applicants argued that upon a proper construction of the powers conferred upon the governor by BOFIA, the governor had acted ultra vires, as the law only conferred powers on the governor to: The Act, among other things, regulates banking and other financial institutions by prohibiting the carrying on of such business in Nigeria except under licence and by a company incorporated in Nigeria, while specifically also providing details on legal and regulatory requirements on financial statements.

Nigeria: Bofia – CBN’s Powers Get Court Affirmation

The regulatory authorities, on their part, would further streamline the regulatory framework and strengthen the supervisory capacity to ensure a sound and efficient system. The focal point is centred on providing the framework as stipulated by the Bank and Other Financial Institution Bbofia BOFIA on the legal and regulatory requirements for the banking industry.

Justice Archibong further observed that CBN Act was an Act of the National Assembly, which empowers the CBN to intervene where it finds that 209 funds are in danger, adding that he did not find where in the suit or the law where the CBN acted beyond its powers or did not comply with the provisions of the law on revocation of banking licences of the bank.

The non performing loan which dropped to 3. Read the original article on Vanguard. Meanwhile, our retail outlet in London should be improved and we would also want to know how the unclaimed dividend is put to use in our next report. You are commenting using your Twitter account.

The court, after reproducing all the relevant provisions of BOFIA, held that the use of the word ‘any’ in Obfia 35 of BOFIA meant that the governor was not restricted to exercising only one of the powers specified in sub-section 2 which allows for the removal of directors, appointment of directors, capital injection, etc”but could indeed exercise same or all of the power specified in sub-section 2 of Section 35 of BOFIA.


The Nigerian banking system has undergone remarkable changes over the years, in terms of the number of institutions, ownership structure, bodia well as depth and breadth of operations. The court also noted that the legislature had used the word “or” after the provisions of Section 35 2 d iand Section 35 2 d ii followed. Provided that in the case of paragraph e of this subsection, the Governor may not bfia a special examination or investigation of the books and affairs of a bank if he is satisfied that it is not necessary to do so.

You are commenting using your Facebook account. He dismissed the argument of the plaintiff that the CBN’s act of revocation was bfia with malice and held that “CBN cannot standby, once it is shown that depositors’ funds are in danger. Fill in your details below or click an icon to log in: See What Everyone is Watching. Articles and commentaries that identify allAfrica.

UBA must be commended for complying with the tenets of good corporate governance as shown in the annual report. The lodestar of BOFIA has been ascribed to be the need to have a safe and sound banking and financial market in which public confidence will inhere. No bank has done that. Not satisfied with the action, some shareholders of Union Bank of Nigeria Plc, by way of originating summons, filed an action against the central bank and its governor, specifically challenging its powers to replace their executive directors.

The shareholders also lauded the re engineering of the corporate communication directorate of the bank, saying ” It is a good step towards maintaining good corporate governance. In affirming and upholding the governor’s powers, the court started by reiterating the paramount rule of statutory construction that a “statute is to be construed according to its manifest and expressed intention. Part one, section 3 Books of Account shall provide these details as follows: Email required Address never made public.

We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. NUPP and stated that in the context of which the word was used in Section 35 2 d ithe word “any” clearly indicates that there is no limit to the number of directors that the governor of the central bank is empowered to remove.