ANNOUNCEMENT 02 Oct 2009In October 2009, the government of Nigeria announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
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
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.