Tuesday, 9 August 2011

Nigeria to invest N679 billion into three nationalised banks

Nigeria's government is planning to invest ?679 billion ($4.5bn, £2.8bn) into three banks that were nationalised last week. The country's Central Bank took control of Afribank, Bank PHB and Spring Bank following a realisation that it was unable to raise fresh capital they required.

Control of the three banks has now passed to the State-run Asset Management Corporation of Nigeria (AMCON). It is thought that the company is aiming to raise the funds needed through bond issues. AMCON has also appointed new management to oversee the three banks.

The company released a statement saying: "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…Depositors are again assured that their deposits are safe and employees are also assured of seamless continuity of business operations and job functions."

Trading in the shares of Afribank, Spring Bank and Bank PHB has been suspended.

Sources: BBC News, Reuters, Bloomberg

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.

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