Nigeria seeks briefing on banking

September 30, 2009

, LAGOS, Sept 30 – The Nigerian senate has summoned the central bank governor and two others to brief it on a recent shake-up that saw the removal of top management of five ailing banks, an official said Wednesday.

"The senate resumed from a two-month recess yesterday (Tuesday) and decided to summon the three officials to appear before it on October 6 on the recent developments in the banking industry," a parliamentary aide told AFP.

Those summoned are the governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, the chairman of the Economic and Financial Crimes Commission (EFCC), Farida Waziri and Justice Minister Michael Aondoakaa, he said.

Sanusi sacked the heads of the five troubled banks on August 14 for mismanagement and running the institutions into insolvency.

He said the total loan portfolio of the five banks — Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank — stood at 2.8 trillion naira (17.8 billion dollars, 12.6 billion euros).

He appointed new management for the ailing banks while a 420-billion-naira bailout was also approved for them.

Many former directors of the troubled banks have been charged with fraud and having granted huge loans without collaterals.

Latest Articles

Live prices

Stock Market

Most Viewed