CBN Releases List of 45 Failed Banks and Their Closure Dates

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