CBN caps suspension of payment rights at two business days for distressed banks
The Central Bank of Nigeria issued guidance on July 1 limiting the suspension of payment, delivery, and termination rights under financial contracts to a maximum of two business days. The clarification, signed by Acting Director of Financial Markets Department Okey Umeano, addresses market uncertainty about BOFIA provisions for failing banks. The two‑day period starts from the date the CBN Governor issues a written suspension order. The CBN says the rule takes immediate effect, aims to reduce uncertainty, strengthen confidence, and improve transparency in the bank resolution framework. It also noted related efforts to tighten credit for non‑performing borrowers and tighten oversight of bank‑affiliated transactions.
Will this two‑day limit give you more confidence to keep funds in Nigerian banks, or will you still move your money elsewhere?