BOFI Act 2020 Will Revive Financial System, Economy—Senate
By Dipo Olowookere
The Nigerian Senate has said it expects the Banks and Other Financial Institutions (BOFI) Act 2020 recently signed into law to bring about economic development in the country.
On Thursday, November 12, 2020, President Muhammadu Buhari signed the act into law after it was passed by the National Assembly.
The Senate, while reacting to this development through its spokesman, Mr Ajibola Basiru, said the upper chamber of the parliament worked on the bill to make the financial sector more robust.
The BOFI Act 2020 is the updated version of the 1991 edition which was repealed to give room for new developments in the financial systems.
It was part of the determination of the legislative arm of government to work on bills capable of resuscitating of the national economy like the Petroleum Profit Tax Act; CAMA Act: Finance Act; Police Act; Deep Offshore and Profit Sharing Contract Act, to mention but a few.
According to the Chairman of the Senate Committee on Media, the upper chamber, under the leadership of Mr Ahmed Lawan, is ever resolved to work tirelessly and turn around our moribund laws to ensuring that they are vibrant and are in consonance with modern-day economic reality.
He said this was why the BOFI Act 2020 and others were given priority because they are critical to the nation’s development.
“The work, which has gone into the passage of this bill, like some previously assented to by Mr President, underscores the determination of the 9th Assembly to focus on the path of economic growth and development of our country.
“By this law, banks and financial institutions will be able to offer productive sectors of the economy, quality banking and financial services as well as ensure recovery of non-performing loans,” he said in a statement issued on Saturday.
A statement earlier issued on Friday by the spokesman to President Buhari, Mr Garba Shehu, had explained that the new law is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy.
It had described the BOFI Act 2020 as historic and a significant achievement indicative of effective and productive collaboration between the executive and legislature arms of government.”
According to Mr Shehu, the law “strengthens the regulatory and supervisory framework for the financial industry and provides additional tools for managing failing institutions and systemic distress to preserve financial stability amongst others,” noting that the Central Bank of Nigeria (CBN) is expected to “hold structured engagements with stakeholders across various sectors of the economy on critical aspects of the Act in the coming months.”