An Examination of Laws Regulating Banking in Nigeria: Review of the Banks and other Financial Institutions Act, 2007

Abstract

Banking business is one of the fastest growing sectors of the Nigerian economy which requires a fundamental framework that will enhance the business and to regulate its operations to meet the challenging aspect of the sector. The coming into force of the revised Banks and Other Financial Institutions Act in the year 2007 has sent a signal to all players of the sector that banking business must be in conformity with the relevant laws and therefore no bank in Nigeria will start business without recourse to the Act which is the enabling law of the sector. Things like license and others must be properly checked before operation. The Central Bank of Nigeria being the Apex bank in the country has a role to play in terms of granting license to all proposed banks before start of business. The Act has given the Bank the powers to supervise and monitor the activities of banks in Nigeria, be it commercial, merchant, agricultural, development, infrastructural or micro finance bank.