Hopefully, the CBN resolves the complaint between you and the bank.
However, if the CBN fails to resolve the complaint, you have the right to take the case to court.
In any situation, you always have the right to take any complaint to court, but you have to exhaust all pre-court resolution options first..
You can submit your letter at the CBN Head Office OR at any of the Central Bank of Nigeria branches nationwide.
The CBN deals with all financial related complaints so far as it is against Financial Institutions within its regulatory purview.
Your complaint should be clear and concise to avoid ambiguity..
Under Section 6(1), a banking company may be involved in the business of borrowing or lending money; buying or selling bills of exchange, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures; buying or selling of foreign exchange; dealing stock, funds, shares, debentures, bonds; .
Safety and soundness regulation: to protect depositors and borrowers against the risk of bank failures, for example, by requiring diversification of credits (sectoral credit allocation), specifying minimum capital required for operations, and provision of safety net through deposit insurance schemes..
The primary legislation for the regulation of banks in Nigeria is the Banks and Other Financial Institutions Act (BOFIA) which, with the Central Bank of Nigeria (Establishment) Act 2007 (CBN Act), gives the Central Bank of Nigeria (CBN) powers to supervise and regulate banks and other financial institutions in Nigeria..
The current reforms which began in 2004 with the consolidation programme were necessitated by the need to strengthen the banks.
The policy thrust at inception, was to grow the banks and position them to play pivotal roles in driving development across the sectors of the economy..
Structure of banks in Nigeria.
The banking system in Nigeria is structured along six layers, namely, central bank, deposit money banks, merchant banks, development finance institutions, microfinance bank, and mortgage banks..
As per Section 5(b) of the Banking Regulation Act, 1949 , “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw-able by cheque, draft, order or otherwise..
The Central Bank of Nigeria supervises the following categories of financial institutions: Bureaux-de-Change (BDCs) Commercial Banks.
Development Finance Institutions (DFI's).
Save for certain state owned banks that are established as statutory corporations under specific legislation, only limited liability companies duly incorporated under the CAMA can be issued with a banking licence to operate as a bank in Nigeria
The legal entity can either be a public or private company
8It specifically states that foreign banks or other entities- (i) without a physical presence in their country of incorporation; or (ii) that are not licensed in their country; or (iii) are not affiliated to any supervised financial group – shall not be permitted to operate in Nigeria or establish a relationship with Nigerian banks
The most significant regulatory development in the Nigerian banking industry is the repeal of the Banks and Other Financial Institutions Act, 1991 and the enactment of the 2020 Act (BOFIA)
Some of the key provisions in the BOFIA are set out below
The BOFIA introduced certain intervention/rescue tools to be employed by the Governor of the CBN: ,
The primary legislation governing banks in Nigeria is the Banks and Other Financial Institutions Act 2020 (BOFIA) and the Central Bank of Nigeria (Establishment) Act 2007 (CBN Act)
Other legislation relevant to banking regulation include ,the: ,Companies and Allied Matters Act (CAMA) 2020 which regulates companies generally
