Regulatory Alerts2026-07-01 | FMD/DIR/PUB/CIR/001/029Interpretative Guidance on the Practical Operation of Sections 34(2)(B) and 40(2) of the Banks and Other Financial Institutions Act, 2020
The Central Bank of Nigeria issued this circular to resolve uncertainty regarding the maximum duration for suspending payment obligations and termination rights under BOFIA Sections 34(2)(b) and 40(2). The guidance mandates that such suspensions shall not exceed a period of two business days commencing from the date the CBN Governor issues the written order or notice. This directive applies to all banks, financial institutions, and counterparties involved in affected contracts to facilitate effective commercial risk management.
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