Nigerian banks have been barred from using or retaining any person that was dismissed from any of the three tiers degree of presidency.

This was disclosed by the Banks and Other Financial Institutions Act, 2020, (BOFIA), which was signed into regulation by President Muhammadu Buhari.

In accordance with the brand new regulation, monetary establishments are barred from using or retaining a person that was dismissed from both the federal, state or native authorities establishments.

What BOFIA says

Its Part 47(2) partly reads;

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“No financial institution shall make use of or proceed the employment of any particular person as a director, supervisor, secretary or an officer who (a) is of unsound thoughts or, because of in poor health well being, is incapable of discharging his duties.

(b) is dismissed from the service of the federal, state or native authorities or any companies of such authorities or

(c) is said bankrupt or suspends funds or compounds together with his collectors, together with his bankers;


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(d) is convicted of any offence involving dishonesty or fraud.

(e) is responsible of great misconduct in relation to his duties; or (f) within the case of an individual who possesses an expert qualification, is disqualified or suspended in any other case than of his personal request from practising his occupation by the order of any competent authority.”

Jail time period for a banker that takes a present to obtain a mortgage

The regulation additionally prescribes a five-year jail time period or a nice of N5mllion or each for any financial institution official who helps a buyer to obtain a mortgage in alternate for a fee or reward.

The reward collected by a banker discovered responsible would even be forfeited to the financial institution.

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Part 46(1) says, “Any director, supervisor, officer or worker of a financial institution or another particular person receiving remuneration from the financial institution, who solicits, receives, consents or agrees to obtain any reward, fee, employment, service, gratuity, cash, property or factor of worth for his personal private profit or benefit or for that of any of his relations, from any particular person for-

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(a) procuring or endeavouring to obtain for any particular person any advance, mortgage or credit score facility from the financial institution

(b) the aim of the acquisition or low cost of any draft, word, cheque, invoice of alternate or different obligation by that financial institution… commits an offence and is liable to conviction to (i) a nice of N5,000,000 (ii) imprisonment for a time period of 5 years or (iii) each such nice and imprisonment and, as well as, any such reward or different fee shall be forfeited to the financial institution.”

What it means

If duly carried out, the event is predicted to revive Nigerians confidence, particularly SMEs in assessing mortgage services.



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