In November 2020, the ‘Banks and Other Financial Institutions Act’ (“BOFIA”) was signed into law by President Muhammadu Buhari, replacing BOFIA 1991. BOFIA 2020 is the primary legislation for the regulation of all banks and financial institutions in Nigeria. It defines the powers of the Central Bank of Nigeria (“CBN”), stipulates the licensing requirements for banks and other financial institutions and regulates their operations
BOFIA 2020 forbids foreign banks without physical presence, license, or some form of supervision in its country of incorporation from operating in Nigeria. Nigeria has, for the first time, imposed a penalty for failure to comply (either deliberately or by an act of omission) with cybersecurity regulations as issued by CBN from time to time.