ANNOUNCED AS TEMPORARYNo
Bailout (capital injection or equity participation)
The Central Bank of Nigeria is to inject an additional 200 billion naira into four banks that an investigation had revealed were in a "grave situtation." The four banks are: Spring Bank Plc, Equatorial Trust Bank Ltd., Wema Bank Plc and Bank PHB Plc. A fifth bank, Unity Bank Plc, was found to have insufficient capital for its current level of operations but has a healthy liquidity position and no indication of poor corporate governance practices. The bank was instructed to recapitalise by 30 June 2010.
The capital infusion (at current exchange rates worth $1.3 billion US dollars) is discriminatory. It should be noted that the Central Bank justified its actions on the grounds of restoring health to the national banking system.
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