Where the license of a bank has been revoked, the Governor of CBN will appoint the Nigeria Deposit Insurance Corporation (NDIC) as a liquidator of the bank whose license has been revoked.[8] The NDIC will immediately proceed with the liquidation of the bank and payment of assured deposit liabilities.[9] However, any bank that wants to institute an action to challenge the revocation of license on any ground, must do so at the Federal High Court within 30 days from the date of revocation.[10]This action and any appeal emanating from it will be heard in an expedited and accelerated Hearing.[11] The bank whose license has been revoked can only get remedy in monetary compensation, not more than the equivalent of the value of the paid-up capital of the bank, at the time of the revocation of the license.[12]
CONCLUSION The need to regulate the banking sector and the strict requirements for engaging in it cannot be over-emphasized. This can be linked to the fact that it deals with the safekeeping of monies belonging to the general public.The standards for establishing a bank in Nigeria may appear rigorous, but they are necessary in order to provide competence, accountability and expertise to the bank’s customers. These legislations regulating the banking sector have been the major source of protection in the banking sector, and have helped boost the confidence of customers. Any company with intentions of venturing into the Banking sector must ensure that the company complies with the requirements necessary to obtain the relevant licenses.It is important to note that even after obtaining the necessary licenses, the company must continue to verify that the banking business it conducts is always in compliance with all applicable regulations. As a result, it is imperative that expert assistance be sought, both prior to the company’s incorporation and during the banking operation. [1] Cap B3, Laws of the Federation of Nigeria, 2004[2] Section 1(1) BOFIA 2020[3] Section 2 (1) (2) BOFIA 2020[4] Section 3 (1) BOFIA 2020[5] Section 3 (2) BOFIA 2020[6] Section 3 (3) BOFIA 2020[7] Section 12 (1) BOFIA 2020[8] Section 12 (2) BOFIA 2020[9] Section 12 (3) BOFIA 2020[10] Section 12 (5) BOFIA 2020[11] Section 12 (4) BOFIA 2020[12] Section 12 (6) BOFIA 2020 Read More Articles Here.