2. THE CENTRAL BANK OF NIGERIA ACT 2007
The CBN is the lead regulator of the financial system in Nigeria, and is charged with the overall control and administration of the monetary and financial sector policies of the Federal Government in Nigeria as stipulated by the CBN Act of 2007.
i. Section 2 of the Act stipulates the objectives of the CBN which include ensuring monetary and price stability, issuance of legal tender, and maintaining external reserves to safeguard the international value of the legal tender currency and this promotes a sound financial system in Nigeria to which the provides economic and financial advice to the Federal Government.
ii. The Act also empowers CBN to issue guidelines and circulars relating to its responsibility to banks, foreign exchange market, and other financial institutions.
3. THE COMPANIES AND ALLIED MATTERS ACT, 2020
This Act is charged with the regulatory powers over all registered companies in Nigeria, including banks and other financial institutions.
i. The Act governs banking activities because to operate a financial institution or banking business in Nigeria, one has to be duly registered and incorporated under the CAMA.
ii. CAMA also provides various regulations and compliances that banks must follow from issuance of shares to meetings of companies, among others.
iii. The Act also stipulates that every registered company must file an annual return with the CAC as a mandatory requirement to which the Banks must adhere.
4. THE NIGERIAN DEPOSIT INSURANCE CORPORATION ACT, 2006 (NDIC)
This Act is responsible for ensuring all deposit liabilities of licensed banks. The Act seeks to ensure that liquidation proceeds carried out by Banks are orderly.
i. The Act with directives from the CBN, the NDIC takes over the management and control of a failing bank and ensures the efficient closure of the failed bank and financial institutions without any disruptions.
ii. It also ensures the cost-effective realization of assets and settlement of claims to depositors, creditors, and shareholders.
5. THE FOREIGN EXCHANGE (MONITORING AND MISCELLANEOUS PROVISIONS) ACT,1995
This Act provided the regulatory framework for Foreign Exchange transactions and controls
i. The Act provides that transactions in the foreign exchange market are to be conducted in convertible foreign currency.
ii. Section 2 (2) of the Act listed specific money instruments that can be used in the market. These include foreign bank notes, bank drafts, Mail or telegraph transfers, and any other money market instruments that the Central Bank may with the approval of the Finance Minister.