Nigeria To Pump $4.5bn Into Three Nationalised Banks

Nigerian authorities are planning to pump 679bn naira ($4.5bn; £2.8bn) into the three banks that were nationalised last week.

Afribank, Bank PHB and Spring Bank were taken control of last week after the Central bank of Nigeria ruled that they were unable to raise the fresh capital they required.

Ownership of the three banks has now passed to the state-run Asset Management Corporation of Nigeria. Trading in the shares of the banks have also been suspended.

It is seeking to raise the funds through bond issues.

Asset Management Corporation of Nigeria, AMCON, an organization set up by the Central Bank of Nigeria to hold all the bad debts in the country’s banking sector, has also appointed new directors to run the three troubled banks.

“The newly appointed boards are entrusted with the mandate to manage these banks along best commercial practice, to compete effectively in the Nigerian banking sector and provide quality service to customers,” AMCON said.

“Depositors are again assured that their deposits are safe and employees are also assured of seamless continuity of business operations and job functions.”

In 2009, the Nigerian central bank pumped $4bn into nine lenders – including Afribank, Spring Bank and Bank PHB.

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