President Muhammadu Buhari has assented to the Banks and Other Financial Institutions Act 2020.
The piece of legislation repeals the extant Banks and Other Financial Institutions Act 1991 as amended.
It is expected to enhance the resilience of the Nigerian financial system for economic growth.
The Presidential spokesman, Garba Shehu in a statement today, explained that the Central Bank of Nigeria (CBN) will hold structured engagements with stakeholders across various sectors of the economy on critical aspects of the Act in the coming months.
The BOFI Act 2020 updated the enabling law in response to developments and significant evolution in the financial sector over the last two decades.
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.
The law introduces a credit tribunal to improve loan recovery and address the incidence of high non-performing loans within the financial system, which has been a key deterrent to lending by financial institutions.
The law also promises to strengthen 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.