Central Bank Revokes The Licenses Of Afribank Nigeria Plc, Spring Bank Plc And Bank PHB!

The Central Bank Of Nigeria (CBN) nationalized three banks Friday night in the course of an ever-widening probe of corruption allegations and mismanagement of fiscal institutions.


The move comes two years after the CBN injected $2.55 billion into the troubled banking industry and some former CEOs now face allegations of stealing depositors' money.

This "represents an important milestone in the process of stabilizing the banks and enables these banks to move forward with a more certain future and bring to closure the banking crisis that started in 2008," Finance Minister Yerima Ngama said in a statement.

The CBN also issued a statement promising depositors their money would be safe and that interbank obligations would be covered through Dec. 31.

But central banker Sanusi Lamido Sanusi fired five top banking CEOs amid the 2009 bailout, blaming the crisis on poor decisions that led the firms into "technical insolvency." Analysts later said the crisis grew out of lax regulation of financial institutions, leaving ample room for banks to cook their books.

The financial crisis ultimately affected nine of Nigeria's 24 banks.

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