ANNOUNCEMENT 02 Oct 2009

In October 2009, the government of Nigeria announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Central Bank of Nigeria. 2009. 'Press statement on outcome of special examination of 14 banks,' http://www.cenbank.org/Out/publications/pressRelease/GOV/2009/pressstatmt%2002-10-2009.pdf


Inception date: 02 Oct 2009 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

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.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A