Nigeria: Several banks bailed out in 2010 will be recapitalised

Feb 04, 2011

Nigeria's Central Bank (CBN) has announced the recapitalisation of four of the eight banks that have been bailed out by the state during the financial crisis.

According to the CBN, new agreements should be signed within a few weeks between these financial institutions and new investors. The names of the four banks have not yet been released.

"Nigeria's Central Bank had to act in the interest of savers who trusted the system", Lamido Sanusi, Central Bank Governor, told the country's Sun newspaper.

He added that the CBN will increase lending to the agricultural sector in 2011 and will work towards the development of interest-free banks in Nigeria.

Furthermore, the head of the Asset Management Corporation of Nigeria (AMCON) told the Reuters news agency that the banking crisis would be resolved by the middle of 2011.