made under Act 24 of , Act 11 of and Act 23 of The. Central Bank accepts no liability for any loss arising of its use. The updated version of the Act. The Aftermath of the Financial Crisis Y. Makanjuola Other Financial Institutions Act (BOFIA), the CBN governor could not exercise powers both to remove. 30 Apr. 31 Dec. 30 Apr. N’ N’ N’ . of these accounts in accordance with Section 27(5) of BOFIA (as.
|Published (Last):||1 October 2011|
|PDF File Size:||1.44 Mb|
|ePub File Size:||12.13 Mb|
|Price:||Free* [*Free Regsitration Required]|
UBA must be commended for complying with the tenets of good corporate governance as shown in the annual report.
We also commend the bank for making Nigerians rich in terms of bonus and dividend payment and also for acquiring some of the distressed banks and thus putting depositors of those banks in their former position.
By continuing to use this website, you agree to their use. In deciding the case, the presiding judge, Justice Mohammed Idris, resolved all the issues on the powers of the governor against the applicants. See What Everyone is Watching. They also argued that the revocation was tainted with malice and urged the court reverse the action. The non performing loan which dropped to 3. Read the original article on Vanguard. According to him “We shareholders are happy with the dividend and bonus payment despite the global market downturn.
To address comments or complaints, please Contact us. The focus here shall be the legal and regulatory requirements as it relate to financial statements of banks and other financial institutions. The court finally recognised that the general rule is that he who has the power to hire has the power to fire, ” The bank chiefs were further accused of failing to give a true and fair view of the state of the affairs of the banks to CBN by incorrectly importing false amounts of commercial papers under the Expanded Discount Window in the statement of assets and liabilities, offences contrary to and punishable under Sections 20 b 728 1,2, and 324 and 50 of BOFIA.
AllAfrica is a voice of, by and about Africa – aggregating, producing and distributing news and information items daily from over African news organizations and our own reporters to an African and global public. Justice Archibong further observed that CBN Act was an Act of the National Assembly, which empowers the CBN to intervene where it finds that depositors’ funds are in danger, adding that he did not find where in the suit or the law where the CBN acted beyond its powers or did not comply with the provisions of the law on revocation of banking licences of the bank.
Notify me of new comments via email. They contended that the actions of the governor were in breach of the Memorandum and Articles of Association of the bank.
They were accused of insider abuse and other offences ranging from recklessly granting loans totalling N billion that had gone bad. It would noted that following the conclusion of its Brand and Communication Transformation.
The lodestar of BOFIA has been ascribed to be the need to have a safe and sound banking and financial market in which public confidence will inhere.
The shareholders also lauded the re 209 of the corporate communication directorate of the bank, saying ” It is a good step towards maintaining good corporate governance. To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here. Articles and commentaries that identify allAfrica.
Among the things they quarrelled with in the suit was that the apex court acted beyond its powers in the revocation of the bank’s licence. Also divisions in the directorate were reinforced with the hiring of seasoned senior level professionals from leading Bodia and Nigerian financial institutions.
The court, relying on the decision of the Supreme Court in NDIC v Okem Enterprises Ltd, held that “Where the word notwithstanding is used in a section of a statute as in sub-section 2 d of Section 35, it is used to exclude an impinging or impending effect of any other provision of the statute or subordinate legislation so that the said section may fulfill itself.
Not satisfied with the action, some shareholders of Union Bank of Nigeria Plc, by way of originating summons, filed an action against the central bank and its governor, specifically challenging its powers to replace their executive directors. Martin Anyanwu a multi-sectoral sales, Marketing and Advertising guru with almost 2 decades experience garnered in reputable institutions including Nigerian Breweries- the Heineken Affililiate company in Nigeria.
He further commended the bank for its imitative to acquire some of the failed banks to make depositors of those bank s happy and removing hardship in their faces. Bofis named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. Meanwhile, our retail outlet in London 209 be improved and we would also want to know how the unclaimed 20009 is put to use in our next report.
A further rationale for the Act was to ensure that banks and other financial institutions played their primary role of financial intermediation effectively.
We commend the Board and Management for this feat. The focal point is centred on providing the framework as stipulated by the Bank and Other Financial Institution Act BOFIA on the legal and regulatory requirements for the banking industry. The applicants argued that upon a proper construction of the powers conferred upon the governor by BOFIA, the governor had acted ultra vires, as the law only conferred powers on the governor to: Umar further called on the bank to look at ways of improving its shareholders’ fund to be in the region of trillion naira.
Nigeria: Shareholders Hail UBA’s Compliance of Bofia, CBN Rules
We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. The judge also referred to Apena v. He held that since documentary evidence available before him showed that Bank Bofja had non-performing loans of N billion, with its liquidity ratio below 25 per cent and was showing signs of a failing bank in dire need of capital, this made the intervention of the apex bank imperative.
The Act, among other things, regulates banking and other financial institutions by prohibiting the carrying on of bogia business in Nigeria except under licence and by a company incorporated in Nigeria, while specifically also providing details on boria and regulatory requirements on financial statements. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.
Nigeria: Bofia – CBN’s Powers Get Court Affirmation –
To find out more, including how to control cookies, see here: Part one, section 3 Bofai of Account shall provide these details as follows: AllAfrica is a voice of, by and about Africa – aggregating, producing and distributing news and information items daily from over African news organizations and our own reporters to an African and global public.
No bank has done that. AllAfrica publishes around reports a day from more than news organizations and over other institutions and individualsbofiw a diversity of positions on every topic.
Email required Address never made public. Read the original article on This Day. You are commenting using your WordPress. Notwithstanding anything contained in any law or memorandum and articles of association of a bank, where the Bank or an appointed person has, pursuant to an order under section 34 of this Decree assumed control of a bank whose paid-up capital is lost or unrepresented by available assets, the Bank may, with the approval of the President.
In affirming and upholding the governor’s powers, the court started by reiterating the paramount rule of statutory blfia that a “statute is to be construed according to its manifest and expressed intention. This study has been embarked upon to clearly enumerate all the provisions on boifa and regulatory requirements guiding the operations of boffia in Nigeria and their financial reporting as stipulated in the Bank and Other Financial Institution Act BOFIA. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons.
Diversification of the productive base of the economy remains a fundamental bofa of economic management, and banks will increasingly be challenged to become more innovative in their intermediation function, and especially to increase financing to the productive sectors.
Nigeria: Bofia – CBN’s Powers Get Court Affirmation
To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here. The court also noted that the legislature had used the word “or” after the provisions of Section 35 2 d iand Section 35 2 d ii followed. Provided that in the case of paragraph e of this subsection, the Governor may not order a special examination or investigation of the books and affairs of a bank if he is satisfied that it is not necessary to do so.