The Central Bank of Nigeria (CBN) recently released a list of 45 failed Nigerian banks and the dates of their closure, highlighting the ongoing issue of bank closures in the country. The Nigerian banking industry has experienced a significant number of bank closures over the past three decades, with approximately 46 commercial and merchant banks having closed their doors for various reasons. The CBN has been the primary regulator responsible for revoking the licenses of banks that have failed to meet the required financial and operational standards.
Between 1994 and 2006, a total of 45 banks had their licenses revoked by the CBN, leading to the takeover of two commercial banks by United Bank of Africa and Ecobank. The most recent bank closure occurred in 2018 when Skye Bank had its operating license revoked by the CBN. In response, Polaris Bank was authorized to take over the failed bank, and the winding up process was handled by the Nigeria Deposit Insurance Corporation (NDIC), which was appointed as the liquidator by the Federal High Court.
The closure of these banks has not only impacted the financial sector but also had a ripple effect on the wider economy, with many customers losing their savings and investments. However, recent reports suggest that customers of 20 of the failed banks have been asked to come forward to receive their money, providing some relief for those who have been impacted by the bank closures.
Below is the list of 45 failed banks and the year of closure
1. Abacus Merchant Bank Ltd – Jan. 16, 1998
2. ABC Merchant Bank Ltd – Jan. 16, 1998
3. African Express Bank Ltd – Jan. 16, 2006
4. Allied Bank of Nigeria Plc – Jan. 16, 1998
5. Allstates Trust Bank Plc – Jan. 16, 1998
6. Alpha Merchant Bank Plc – Sept. 08, 1994
7. Amicable Bank of Nigeria Plc – Jan. 16, 1998
8. Assurance Bank of Nigeria Plc – Jan. 16, 2006
9. Century Merchant Bank Ltd. – Jan. 16, 1998
10. City Express Bank Plc – Jan. 16, 2006
11. Commerce Bank Plc – Jan. 16, 1998
12. Commercial Trust Bank Ltd – Jan. 16, 1998
13. Continental Merchant Bank Plc – Jan. 16, 1998
14. Coop. & Commerce Bank Plc – Jan. 16, 1998
15. Credite Bank Nig. Ltd – Jan. 16, 1998
16. Crown Merchant Bank Ltd. – Jan. 16, 1998
17. Financial Merchant Bank Ltd. – Jan. 21, 1994
18. Great Merchant Bank Ltd. – Jan. 16, 1998
19. Group Merchant Bank Ltd. – Jan. 16, 1998
20. Gulf Bank Ltd – Jan. 16, 2006
21. Hallmark Bank Plc – Jan. 16, 2006
22. Highland Bank of Nig Plc – Jan. 16, 1998
23. ICON Ltd. (Merchant Bankers) – Jan. 16, 1998
24. Ivory Merchant Bank Ltd. – Dec. 22, 2000
25. Kapital Merchant Bank Ltd. – Jan. 21, 1994
26. Lead Bank Plc – Jan. 16, 2006
27. Lobi Bank of Nig. Ltd. – Jan. 16, 1998
28. Mercantile Bank of Nig. Plc. – Jan. 16, 1998
29. Merchant Bank of Africa Ltd. – Jan. 16, 1998
30. Metropolitan Bank Ltd. – Jan. 16, 2006
31. Nigeria Merchant Bank Ltd. – Jan. 16, 1998
32. North-South Bank Nig. Plc. – Jan. 16, 1998
33. Pan African Bank Ltd. – Jan. 16, 1998
34. Pinacle Commercial Bank Ltd. – Jan. 16, 1998
35. Premier Commercial Bank Ltd – Dec. 22, 2000
36. Prime Merchant Bank Ltd. – Jan. 16, 1998
37. Progress Bank Ltd. – Jan. 16, 1998
38. Republic Bank Ltd – June 29, 1995
39. Rims Merchant Bank Ltd. – Dec. 22, 2000
40. Royal Merchant Bank Ltd. – Jan. 16, 1998
41. Trade Bank Plc – Jan. 16, 2006
42. United Commercial Bank Ltd. – Sept. 8, 1994
43. Victory Merchant Bank Ltd. – Jan. 16, 1998
44. Eagle Bank Plc- Jan. 16, 2006
45 Liberty Bank Plc.- Jan. 16, 2006
As the Nigerian banking sector experienced a spate of closures over the past few decades, some financial institutions have been able to weather the storm by taking over failed banks. United Bank of Africa (UBA) and Ecobank are two such examples of banks that have successfully acquired other financial institutions.
Ecobank, for instance, was able to take over All States Trust Bank, as revealed by checks conducted by Legit.ng. This acquisition included 65 branches that had previously been owned by All States Trust Bank, as well as over 32,000 depositors who subsequently became part of Ecobank’s customer base.
Similarly, UBA Plc was able to emerge as the successful bidder for Trade Bank Ltd. This acquisition gave UBA control over Trade Bank’s assets, including its customer base, loans, and investments. By taking over these failed banks, UBA and Ecobank were able to expand their market presence and strengthen their position within the banking industry.
However, while such acquisitions can provide opportunities for growth and expansion, they also come with certain challenges. For instance, the integration of different banking systems and processes can be complex and time-consuming, requiring significant investment in technology and personnel. Additionally, the success of such acquisitions depends on the ability of the acquiring bank to effectively manage and integrate the new customer base and assets, and to maintain the trust and confidence of its existing customers.
In summary, the acquisition of failed banks by UBA and Ecobank represents a successful strategy for navigating the turbulent Nigerian banking sector. While such