Resolution of Recapitalisation through Bridge Banks
Scanning the record books or, more readily, a visit to the website of the Nigeria Deposit Insurance Corporation (NDIC) reveals a startling fact. Bank closure by Nigerian regulators in the late 20th century era of financial deregulation is not a new phenomenon. However, it is absolutely a last resort, and not an activity that is ever undertaken lightly. Between 1994 and 2006, over 40 banking institutions were closed or had their licences revoked by the Central Bank of Nigeria.1 Going down memory lane, names such as Alpha Merchant Bank Plc, Commerce Bank Plc, Gulf Bank Limited, North-South Bank Nigeria Plc and United Commercial Bank Limited feature prominently on the list. But, truth be told, those banks were relatively small compared with the banks that emerged post-consolidation in 2006.
KeywordsCentral Bank Effective Date Attorney General Share Capital Legal Adviser
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