Financial Crime World

Nigeria’s Banking Industry Compliance: Supervisory Provisions Regulating the Sector

Following our previous examination of [Regulatory Compliance In The Banking Industry](link to previous article), which highlighted the significance of compliance with banking regulations in Nigeria, we will now explore the various supervisory provisions that govern and direct the operations of banks in Nigeria.

Legislation Governing the Banking Sector

The primary legislation governing the banking sector is the Banks and Other Financial Institutions Act (BOFIA) 2020. This act grants the Central Bank of Nigeria (CBN) the authority to supervise and regulate all banks and other financial institutions in Nigeria.

Key Laws Regulating Banking Activities

  • Central Bank of Nigeria Act 2007: This law outlines the CBN’s powers, duties, and functions.
  • Nigerian Deposit Insurance Corporation Act: This act provides for the establishment, powers, and functions of the Nigerian Deposit Insurance Corporation (NDIC).
  • Companies and Allied Matters Act 2020: This law regulates companies, including banks, in Nigeria.
  • Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 1995: This act regulates foreign exchange transactions in Nigeria.
  • Nigerian Deposit Insurance Corporation Act 2006: This act provides for the establishment, powers, and functions of the NDIC.

The CBN is responsible for enforcing these laws and ensuring compliance by banks and other financial institutions. By doing so, it helps to maintain stability and confidence in the banking sector, thereby protecting depositors’ funds and promoting economic growth.