Savannah Bank
Encyclopedia
The Savannah Bank is a Nigeria
n bank whose license was withdrawn in February 2002 and restored in February 2009 after protracted legal battles.
An investor, International Resource Associates of London, bought 67.35% of the shares of Savannah Bank in 1999, and on 14 April 2000, the bank came under new management.
Some prominent people associated with the bank were Senator Jim Nwobodo
, a shareholder and chairman,
Senator Felix Kolawole Bajomo
, an executive director,
and Shettima Mustapha
, a Federal Minister and board member, but not a shareholder.
The Savannah Bank was among Nigeria's top 10 financial institutions.
The bank's licence was withdrawn by the Central Bank of Nigeria
(CBN) on 15 February 2002.
The CBN Governor Joseph Oladele Sanusi
said the bank did not have enough assets to meet liabilities, did not comply with CBN obligations, and that the regulators had been unable to prevent further deterioration. The Nigeria Deposit Insurance Corporation
took over as liquidator, sealing the bank's offices.
At the time it was closed, the bank had 140 branches.
The bank's owners fought the closure in court. In a ruling on 20 October 2006, the Abuja High Court said the CBN had acted properly in revoking the bank's licence. Further appeals followed.
On 6 February 2009 a Court of Appeal sitting in Abuja
ordered the re-opening of Savannah Bank, and ordered the CBN and NDIC to pay N100 million to the bank as damages.
Richard Abrahams of the Bank of America
was appointed chairman of the interim Board of Directors.
Jim Nwobodo said the new Savannah Bank would be launched carefully to ensure emergence of a world class and competitive institution.
It was reported in February 2010 that the bank's owners might be trying to raise over N100 billion via an international private placement, and the bank was ready to buy up non-performing branches of troubled banks across the country.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
n bank whose license was withdrawn in February 2002 and restored in February 2009 after protracted legal battles.
An investor, International Resource Associates of London, bought 67.35% of the shares of Savannah Bank in 1999, and on 14 April 2000, the bank came under new management.
Some prominent people associated with the bank were Senator Jim Nwobodo
Jim Nwobodo
James Ifeanyichukwu Nwobodo is a Nigerian businessman and politician who was governor of Anambra State during the Nigerian Second Republic and was Senator for Enugu East in Enugu State...
, a shareholder and chairman,
Senator Felix Kolawole Bajomo
Felix Kolawole Bajomo
Felix Kolawole Bajomo is a Nigerian politician who was elected a member of the Senate for the Ogun West constituency of Ogun State in April 2007.-Background:...
, an executive director,
and Shettima Mustapha
Shettima Mustapha
Shettima Mustapha, OFR is a Nigerian academic and politician who served as Minister of Agriculture , and in 2007 was appointed Minister of Defense in the cabinet of President Umaru Yar'Adua...
, a Federal Minister and board member, but not a shareholder.
The Savannah Bank was among Nigeria's top 10 financial institutions.
The bank's licence was withdrawn by the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
(CBN) on 15 February 2002.
The CBN Governor Joseph Oladele Sanusi
Joseph Oladele Sanusi
Chief Joseph Oladele Sanusi is a Nigerian chartered accountant who was Governor of the Central Bank of Nigeria from May 1999 to May 2004.-Background and qualifications:...
said the bank did not have enough assets to meet liabilities, did not comply with CBN obligations, and that the regulators had been unable to prevent further deterioration. The Nigeria Deposit Insurance Corporation
Nigeria Deposit Insurance Corporation
The Nigeria Deposit Insurance Corporation was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent...
took over as liquidator, sealing the bank's offices.
At the time it was closed, the bank had 140 branches.
The bank's owners fought the closure in court. In a ruling on 20 October 2006, the Abuja High Court said the CBN had acted properly in revoking the bank's licence. Further appeals followed.
On 6 February 2009 a Court of Appeal sitting in Abuja
Abuja
Abuja is the capital city of Nigeria. It is located in the centre of Nigeria, within the Federal Capital Territory . Abuja is a planned city, and was built mainly in the 1980s. It officially became Nigeria's capital on 12 December 1991, replacing Lagos...
ordered the re-opening of Savannah Bank, and ordered the CBN and NDIC to pay N100 million to the bank as damages.
Richard Abrahams of the Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
was appointed chairman of the interim Board of Directors.
Jim Nwobodo said the new Savannah Bank would be launched carefully to ensure emergence of a world class and competitive institution.
It was reported in February 2010 that the bank's owners might be trying to raise over N100 billion via an international private placement, and the bank was ready to buy up non-performing branches of troubled banks across the country.