Abstract
This paper titled “Banking Law and Economic Development in Nigeria: Contributions and Constraints of the Banks and Other Financial Institutions Act” came against the background of the current instability and uncertainty in the Nigerian banking sector and the need to strengthen the regulatory regime for optimal performance of the sector. The Banks and Other Financial Institutions Act is the principal legislation regulating banking in Nigeria and has a general application to all banks. This paper has therefore examined the strengths and weaknesses of this Act and measured its contributions to economic development in the country as well as its inherent constraints. The paper has found, among other things that the Act has contributed immensely to economic growth in the country through a multi-dimensional sectoral approach. However, a number of defects in the Act still need to be rectified. The paper has recommended the easing of over-regulation by striking out certain self-contradictory and ambiguous provisions that are open to abuse as well as placement of much more reliance on the courts for enforcement rather than the unguarded discretion allowed the Central Bank of Nigeria, among other things.
Highlights
This paper titled “Banking Law and Economic Development in Nigeria: Contributions and Constraints of the Banks and Other Financial Institutions Act” came against the background of the current instability and uncertainty in the Nigerian banking sector and the need to strengthen the regulatory regime for optimal performance of the sector
The paper has recommended the easing of over-regulation by striking out certain self-contradictory and ambiguous provisions that are open to abuse as well as placement of much more reliance on the courts for enforcement rather than the unguarded discretion allowed the Central Bank of Nigeria, among other things
There exist in Nigeria well above two dozen legislations regulating the operation of banks and other financial institutions and organizations, including issues
Summary
There exist in Nigeria well above two dozen legislations regulating the operation of banks and other financial institutions and organizations, including issues. Part 1 of the Second Schedule to the constitution gives the federal government the exclusive authority to make laws and implement the laws it has made with regard to matters connected with bankruptcy and insolvency; banks, banking, bills of exchange and promissory notes; borrowing of monies within or outside Nigeria for the purposes of the Federation or of any State; control of capital issues, currency, coinage and legal tender; and exchange control. The paper aims at appraising the principal banking legislation in the country, namely, the Banks and Other Financial Institutions Act to determine its relevance and contributions to the development of the Nigerian economy. Nwocha the constraints confronting the Act and finding solutions to those constraints to enable the Act contribute optimally to the development of the banking sector in the country, in particular, and the growth of the economy in general
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