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NIGERIA: BANKS FACE CLOSURE December 26, 2005
Kizza Hajarah
(SomaliNet) Eleven banks in Nigeria are likely to be closed down due to reforms in the country's banking sector.
The reforms are aimed at making the banking sector more efficient. The 11 banks had been given till 31st December to fulfill some requirements. They have barely a week to GO.
"About 11 banks (are) likely to be liquidated compared to 25 that were somewhat dead in June 2004," Central Bank Governor Charles Soludo on December 21."
He further added that 25 others are likely to be opened up in the country.Soludo gave three options for the 11 banks, which are:
- Selective purchase and assumption.
- Central bank issuance of bonds and payments of private depositors within three months of liquidation
- Big bank to take some of the weak ones
The eleven banks are yet to be named.