International Journal of Multidisciplinary and Educational Research (IJMER)
Examination of the Powers and the Governance Structure of Bank Resolution Authorities in Nigeria and the United States of America
E-ISSN: 6575-5565
P-ISSN: 3427-2556
DOI: https://iigdpublishers.com/article/1604
The financial system in Nigeria, much like those in advanced economies, has long grappled with the dual challenges of unstable liquidity flows and the need for prudent fund management mechanisms. The Nigerian banking sector evolved from an unregulated, colonial-era framework that often led to frequent distress and bank failures due to weak legislative oversight. This paper examined the legal frameworks, governance structures, and enforcement powers of bank resolution authorities in Nigeria and the United States. The papers adopted the doctrinal method of legal research. In Nigeria, resolution functions are primarily distributed among the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), and the Assets Management Corporation of Nigeria (AMCON), with the CBN acting as the principal regulator and supervisory authority. Conversely, the United States employs a multi-agency framework involving the Federal Reserve System as the central bank, the Office of the Comptroller of the Currency (OCC) for federally chartered national banks, and the Federal Deposit Insurance Corporation (FDIC) serving as both insurer and orderly resolution authority. A critical evaluation of these regimes revealed differing institutional approaches: while Nigeria concentrates both supervisory and resolution powers within its central bank, the United States separates these functions across specialized agencies. Furthermore, judicial interpretations in the U.S. have occasionally supported regulatory flexibility for large financial institutions, drawing academic scrutiny regarding systemic risks. To improve the Nigerian banking sector, the paper recommended the enhancement of the operational independence of resolution authorities by transferring resolution functions away from the CBN to avoid conflicts of interest, alongside expanding early intervention powers to prevent bank failures. The Paper concluded that while in some jurisdiction, the resolution powers and the supervisory powers are vested in one Agency; other resolution regimes confer resolution and supervisory powers on separate Agencies.
Aliyu Hussaini LLB, BL, LLM, PhD
Agoma, A. (2025). Writing Solo Plays in Nigerian Theatre: Using Sotimirin’s Molue, Mbajiorgu’s The Prime Minister’s Son, and Binebai’s Karina’s Cross as Paradigms. Abuja Journal of Humanities, 6(2), 370-384.
Agoma, A. (2026). Solo Performance and the Superfluity of Facial Make-Up: A Study of Ipe, as Performed by Daniel Olamide, and Molue, as Performed by Tunji Sotimirin. Abuja Journal of Humanities, 7(1), 211-223.
Awaritoma, A. (2009). Stand-up Comedy in Nigeria.
B. Ayorinde, (2018). Banking Reforms in Nigeria; The Law, The Prospects and The Challenges (John Achers Publishers Ltd) 198.
Baba, A. A. Current Development. Banking Inst 259 Board of Governors of the FRS accessed 5 June 2026 9; 40 p. m
Federal Open Market Committee accessed 5 June 2026 9: 45 p .m
Ismail, N. A., & Ali, B. A. (2026). Teaching Classical Arabic (Fuṣḥā) Beyond Grammar: Language, Culture, and Pedagogical Meaning-Making in Nigeria. Abuja Journal of Humanities, 7(1), 161-176.
J. L. Hardee, (2011). 'The Orderly Liquidation Authority: The Creditor's Perspective' 15 NC
Jajere, Z. M. (2009). Family Planning and Abortion in the Face of the Shari'ah. Unimaid Journal of Women Studies, 2, 85.
Jajere, Z. M. (2026). FAITH-BASED RESOURCES AND DURABLE SOLUTIONS: ISLAMIC SOCIAL FINANCE AND THE PROTECTION OF INTERNALLY DISPLACED WOMEN AND CHILDREN IN BORNO STATE, NIGERIA. Multi-Disciplinary Research and Development Journals Int'l, 8(2), 1-36.
Jajere, Z. M. (2026). Gender Inequality in Maiduguri: An Islamic Perspective. Spanish Journal of Innovation and Integrity, 51, 23-29.
Jajere, Z. M., & Abdullahi, A. S. (2025). Muslim Women in Environmental Stewardship: Afforestation Initiatives and Socioeconomic Impact in Muslim-Majority Regions Sahel Region of Africa. African Journal of Earth and Environmental Science, 7(1).
Jajere, Z. M., & ISHAQ, R. N. (2024). ISLAMIC VIEW ON ORPHANS, WIDOWS AND LESS PRIVILEGE IN ECONOMIC HARDSHIP. EKERE JOURNAL OF RELIGION (EJR), 2(1), 71-86.
Jajere, Z. M., & ISHAQ, R. N. ISLAMIC VIEW ON ORPHANS, WIDOWS AND LESS PRIVILEGE IN ECONOMIC HARDSHIP. EKERE JOURNAL OF RELIGION (EJR), 85.
Roberta S. Karmel, (2011). 'An Orderly Liquidation Authority is Not the Solution to Too-Big-To-Fail' 6 Brook J Corp Fin & Com L 1
S. A. Mushell, (2014). 'The Orderly Liquidation Authority: Friend or Foe' 131 Banking LJ 3
Stephen J. Lubben, (2012). 'Resolution, Orderly and Otherwise: B of A in OLA' 81 U Cin L Rev 485
T. W. Merrill & M. L. Merrill, (2014). 'Dodd-Frank Orderly Liquidation Authority: Too Big for the Constitution' 163 U Pa L Rev 165.
