2008-01-24 | TED-FEM-FPC-GEN-01-010-08

Public Notice On Payment Of Private Sector Depositors Of The 14 Banks That Had Their Licenses Revoked On 16 January 2006

In January 2006, the CBN revoked licenses of fourteen banks, guaranteeing no private sector depositors would lose their money within a three-month period. The Nigeria Deposit Insurance Corporation (NDIC) began the winding up process but faced legal challenges from the former bank owners and directors. Despite these hurdles, final court orders were obtained to liquidate 11 of the 14 defunct banks as at date, with their private sector deposits assumed by healthier banks through a purchase and assumption arrangement. This method facilitated quicker payments to affected depositors than any previous bank liquidation in Nigeria's history.

Nigeria

Central Bank of Nigeria

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