Nigerian banks have been barred from using or retaining any person that was dismissed from any of the three tiers stage of presidency.
This was disclosed by the Banks and Other Financial Institutions Act, 2020, (BOFIA), which was signed into legislation by President Muhammadu Buhari.
In accordance with the brand new legislation, 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;
“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, on account of sick 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 asserted bankrupt or suspends funds or compounds together with his collectors, together with his bankers;
(d) is convicted of any offence involving dishonesty or fraud.
(e) is responsible of significant 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 career by the order of any competent authority.”
Jail time period for a banker that takes a present to acquire a mortgage
The legislation additionally prescribes a five-year jail time period or a high quality of N5mllion or each for any financial institution official who helps a buyer to acquire a mortgage in alternate for a fee or present.
The present collected by a banker discovered responsible would even be forfeited to the financial institution.
Part 46(1) says, “Any director, supervisor, officer or worker of a financial institution or some other particular person receiving remuneration from the financial institution, who solicits, receives, consents or agrees to obtain any present, 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-
(a) procuring or endeavouring to acquire 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 high quality of N5,000,000 (ii) imprisonment for a time period of 5 years or (iii) each such high quality and imprisonment and, as well as, any such present 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.