Act 2020
Banks and Other Financial Institutions Act 2020 (BOFIA)
Issued by Central Bank of Nigeria
Effective: 12 Nov 2020
Plain-English summary
The BOFIA (Banks and Other Financial Institutions Act) 2020 is Nigeria's main banking law, passed into effect on 12th November, 2020, to improve its financial sector through regulation by the Central Bank of Nigeria (CBN). This Act provides for the regulation of digital banking operations, the creation of a dedicated Credit Tribunal to swiftly settle non-performing debts, and more power to the CBN to close down or dissolve banks without government assistance. The law is fully functional and strictly enforced, and provides for heavy penalties for misuse of power and illegal banking activities, which attract a fine of at least ₦50,000,000 and imprisonment for a maximum of 5 years.
Who it applies to
Banking · NBFC / Non-bank Lending
Topics
Prudential & Capital
Latest news
-
RBI extends supervisory directions for Industrial Co-operative Bank Ltd.
3 Oct 2026
The Reserve Bank of India has extended supervisory directions issued to The Industrial Co-operative Bank Ltd., Guwahati under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The original directive…
-
RBI finalizes Basel III market risk capital requirements for banks
26 Sep 2026
The Reserve Bank of India has issued final Directions on minimum capital requirements for market risk under the revised Basel III framework, effective April 1, 2027. The framework adopts the Simplified Standardised…
-
RBI penalizes gold-loan fintech KLM Axiva Finvest Limited for auction surplus non-payment
26 Sep 2026
The Reserve Bank of India imposed a monetary penalty of ₹2.70 lakh on KLM Axiva Finvest Limited for regulatory non-compliance discovered during statutory inspection. The company failed to remit surplus amounts to…