Nigeria nationalises three troubled banks

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Nigeria’s financial authorities have nationalised three troubled banks that were earlier rescued by the country’s central bank during a financial crises triggered by debt mismanagement in 2009.

The central bank withdrew the licenses of Afribank, Spring Bank and Bank PHB on Friday while the Nigerian Deposit Insurance Corporation (NDIC) created three bridge banks to acquire the assets of the banks to continue operations on a fresh note.

Recently some troubled banks were given time till September 30 to recapitalise but the oil-rich African country’s apex bank said the nationalised ones have not shown any signs of meeting the deadline.

The new bridge banks licensed by the central bank to acquire their assets are, Enterprise Bank Limited, Keystone Bank Limited and Mainstreet Bank Limited.

Both the CBN and NDIC assured depositors of the three banks that they have no reason to panic, as their deposits are safe.

“The NDIC, in its role as insurer of deposits and in pursuance of express statutory powers, acted to ensure that public confidence in the nation’s banking system is not eroded and that depositors’ funds are safe,” the central bank said in a statement.

Barely two years ago, Nigeria’s central bank sacked some heads of banks that placed their institutions at risk by having non-performing debts.

The apex bank also published lists of debtors to the banks and invited the anti-corruption police, the economic and financial crime commission (EFCC) to arrest the bank chiefs and defaulting debtors.



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