Remember Oceanic, Skye, Bank PHB? Here's a List of 7 Popular Banks that have Stopped Operating in Nigeria
- Some banks in Nigeria stopped existing due to liquidation, licences revocation among other reasons
- Bank PHB was formerly Nigeria's fifth-largest financial services provider and a commercial bank
- Skye Bank was renamed Polaris Bank after the CBN revoked its operating permit in 2018
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Businesses must go through all of the stages of a life cycle, including startup, growth, maturity, renewal/rebirth, and decline.
As a result of the declining profit and cash flow during the last stage, businesses finally decide to leave the market after failing to extend their business life cycle by adjusting to the shifting environment.
In Nigeria, certain banks are no longer in operation for a variety of reasons, including rebranding, acquisition by other banks or organisations, liquidation, licences revocation, and change of name as a result of acquisition by another bank.
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Legit.ng earlier reported the full list of failed Nigerian banks under five different CBN governors between 1994 and 2018, according to the Nigeria Deposit Insurance Corporation (NDIC).
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As highlighted in a report by The Nation, here are seven banks that have ceased to exist in Nigeria over the past two decades.
Afribank Nigeria Plc
One of Nigeria's oldest banks was called Afribank. French investors founded it in 1959, but the Central Bank of Nigeria (CBN) eventually took control of it in 2011.
Before being taken over, Afribank ran over 250 branches across Nigeria up until it encountered financial difficulties and the Central Bank of Nigeria cancelled its licence in 2011.
In 2014, Skye Bank (now Polaris Bank) bought it after it had been rebranded as Mainstreet Bank Limited.
Bank PHB
Bank PHB, Platinum Habib Bank, was formerly Nigeria's fifth-largest financial services provider and a commercial bank.
It was established in 2005, but the Central Bank of Nigeria (CBN) cancelled its licence in 2011 because it failed to meet the deadline for recapitalization as directed. Now, it goes under the name Keystone Bank Limited.
Spring Bank
Another Nigerian commercial bank that experienced issues and had its licence withdrawn by the Central Bank of Nigeria in 2009 was Spring Bank, which was established through the amalgamation of six previous financial organisations.
Later, in 2012, the newly founded Enterprise Bank Limited acquired its assets and liabilities. In 2014, Heritage Bank acquired all of the company's shares, and in January 2015, the Asset Management Corporation of Nigeria formally transferred ownership of Enterprise Bank Ltd to Heritage Bank Plc.
Intercontinental Bank
In 2011, the Central Bank of Nigeria acquired Intercontinental Bank, one of Nigeria's well-known commercial banks, established in 1989. Its operations were subsequently bought by Access Bank, and it has ceased to exist as a distinct company.
Oceanic Bank
The Ibru family established Oceanic Bank in 1990, but due to financial difficulties, it was taken over by the Central Bank of Nigeria in 2011. That same year, Ecobank finally purchased it, and Ecobank Nigeria consolidated its activities.
Skye Bank
The Central Bank of Nigeria acquired Skye Bank, renamed Polaris Bank, and revoked its operating permit in 2018. After the old Prudent Bank Ltd merged with four other EIB International Bank legacy banks in 2006, Skye Bank was created.
2014 saw the acquisition of Mainstreet Bank by Skye Bank, which had previously bought the erstwhile Afribank as a bridge bank. Many analysts link Skye Bank's issues to the difficulties that came with the takeover of Mainstreet Bank.
Diamond Bank
One of Nigeria's leading banks at the time was Diamond Bank, which was established in 1990 and had its headquarters in Lagos state. Diamond Bank was acquired by Access Bank in 2018 and announced its full merger in 2019 to enable them to create a new organisation.
Failed Bank: How to get back your money if your bank suddenly crashes
The collapse of two prominent American banks has instilled a heightened sense of concern among customers worldwide regarding the financial stability of their banks and the feasibility of reclaiming their funds in the event of a bank failure.
This article by Legit.ng delves into the topic of bank failures and the crucial role played by the NDIC (Nigeria Deposit Insurance Corporation) in aiding depositors in recovering their funds.
Additionally, the article will shed light on the necessary steps depositors must follow to initiate the process of reclaiming their money in the unfortunate event of a bank failure.
Source: Legit.ng
