Year: 2023

A trust is an arrangement where a person (settlor/grantor/donor) gives another party (trustee), the legal right to manage his/her assets for the benefit of another person (beneficiary) following the terms and conditions outlined in a trust agreement. A trust can be a property, a bond, a mutual fund or even a stock.

What to consider in setting up a Trust:

1. Determine Goals: Define the purpose of the trust and identify the assets you want to place in the trust.
2. Choose the type of trust you are interested in: There are various types of trusts such as private trust and public trust. Private trust is created for the benefit of specific people while public trust is created for the public/community at large.
3. Appoint a trustee: A trustee can be a company or group of individuals an individual or a firm.
4. Create a Trust Agreement: In setting up a trust, the settlor/donor must show intention to create the trust which may be expressed or implied by conduct.
5. Transfer the assets to the trustee: This is an important aspect, and it depends on whether it is a revocable trust, an irrevocable trust, or a testamentary trust. A revocable trust, also known as a living trust, can be modified or terminated by the settlor during their lifetime. An irrevocable trust cannot be modified or terminated by the settlor once it is created except with the consent of the trustee and the beneficiary. A testamentary trust is created through a will and becomes effective only when the settlor dies.
6. Inform beneficiaries of their interests in the trust, their rights, and the provisions made for them.

BANKER-CUSTOMER RELATIONSHIP IN NIGERIA: A CASE STUDY OF THE CURRENCY SCARCITY AND ITS LEGAL IMPLICATIONS

By Felix Ayem and Godwin Essah

INTRODUCTION

 On 26^th October 2022, the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele while acting with the approval of the President of the Federal Republic of Nigeria and in line with the provisions of sections 2(b), sections 18 (a), 19(a) and (b) of the CBN Act 2007, announced[1] that with effect from 15^th December 2022, the CBN will be circulating the redesigned naira notes (of the 1000, 500 and 200 naira denominations). The CBN Governor further announced the commencement process of retrieving the old notes of the concerned denominations which according to him, would cease to be legal tender on 31^st January 2023.[2]

However, transition to the new denominations of the redesigned currencies has come with lots of challenges ranging from lack of adequate availability of the new notes and the conundrum created by the already retrieved old notes without the corresponding availability of the new notes. This article therefore admits that the CBN has the legal mandate to undertake an alteration of the money policy in Nigeria under Section 2 of the CBN Act 2007. The article further interrogates the issues surrounding the entire currency redesign while adopting a legal approach in analyzing the relationship between bankers and customers, vis-à-vis the liability associated with the bankers’ failure to honour their customers’ request for funds in their custody. The article would also consider the powers of the CBN to undertake and implement the instant monetary policy and the way forward for Nigeria in the midst of the resultant currency scarcity. This writeup shall make reference to various laws regulating banking practices in Nigeria in doing justice to the discourse.[3]

[1] In line with section 35 of the CBN Act 2007

[2] Tope Fasua, Nigeria’s currency redesign 2023: A case study approach, (February 6, 2023) Available at https://www.premiumtimesng.com/opinion/580328-nigerias-currency-redesign-2023-a-case-study-approach-by-tope-fasua.html Accessed 7th February 2023

[3] Such laws include Banks and other Financial Institutions Act 2004 and the Central Bank of Nigeria Act 2007