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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To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here. Bofiq 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.
You are commenting using your Twitter account. 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: Notify me of new comments via email. The court noted that by Section 35 2 d of 2090, the powers of the governor were exercisable, notwithstanding anything in any 209 law, or any limitation contained in the Memorandum and Articles of Association of the bank.
Nigeria: Shareholders Hail UBA’s Compliance of Bofia, CBN Rules –
To address comments or complaints, please Contact us. See What Everyone is Watching. 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. 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.
Justice Archibong further observed that CBN Act was an Act of the National Assembly, which empowers the CBN to intervene where it finds that depositors’ funds are in danger, adding that he did not find where in boia 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 court, relying 2090 the decision of the Supreme Court in NDIC v Bofix Enterprises Ltd, held that “Where the word notwithstanding is hofia in a section of a statute as in sub-section 2 d of Section 35, it is used to exclude an impinging or impending effect of any other provision of the statute or subordinate legislation so that the said section may fulfill itself.
The court finally recognised that the general rule is that he who has the power to hire has the power to fire, ” Provided that the Bank shall furnish any such statement or information to any agency of Government as required by law.
Nigeria: Bofia – CBN’s Powers Get Court Affirmation –
A further rationale for the Act was to ensure that banks and other financial institutions played their primary role of financial intermediation effectively. Further to the powers conferred on under Section 33, 35, and 36 of BOFIA, its governor, Mallam Sanusi Lamido Sanusi, in conducted a special examination into the affairs of all the banks and found that some of them were in a grave situation. 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.
He held that since documentary evidence available before him showed that Bank 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 apex bank imperative. Read the original article on This Day. The bank has made depositors of the failed banks it acquired happy and smiling. AllAfrica publishes around reports a day from more than news organizations and over other institutions and individualsrepresenting a diversity of positions on every topic.
They also argued that the revocation was tainted with malice and urged the court reverse the action. By continuing to use this website, you agree to their use.
Among the things they quarrelled with in the suit was that the apex court acted beyond its powers in the revocation of the bank’s licence. He consequently removed their managing directors and executive directors and appointed replacements.
The ruling was not the first time that the CBN would be receiving a judicial imprimatur on banks in the country. Part one, section 3 Books of Account shall provide these details as follows: Lillian with over 10 years of senior management experience in Marketing, Advertising and Communication previously worked for Standard Chartered Bank, where she drove the bank’s Corporate Affairs strategy for Southern Africa Zambia, Botswana, South Africa and Zimbabwe.
Nigeria: Shareholders Hail UBA’s Compliance of Bofia, CBN Rules
The non performing loan which dropped to 3. Umar further called on the bank to look at ways of improving its shareholders’ fund to be in the region of trillion naira. AllAfrica publishes around reports a day from more than news organizations and over other institutions and individualsrepresenting a diversity of positions on every topic.
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. To find out more, including how to control cookies, see here: At the end of the paper, the reader and examiner will be convinced that these provisions have been logically laid out as succinctly as possible to serve the purpose intended.
This study has been embarked upon to clearly enumerate all the provisions on legal and regulatory requirements guiding the operations of banks in Nigeria and their financial reporting as stipulated in the Bank and Other Financial Institution Act BOFIA.