Nationalization Of Banks – Shareholders, depositors react

Major players in the Nigerian economy have reacted since the nationalization of three banks in Nigeria i.e. Bank Phb, Afribank and Spring bank. While many depositors have entered into a mad rush to completely wipe clean their accounts in the affected banks, the shareholders have threatened to sue CBN for revoking the licenses of the aforementioned banks and nationalizing them considering the fact that the September 30th deadline had not expired. Even the Nigerian Labour Congress blamed the Central Bank of Nigeria for the crisis in the banking sector.

Some say the decision did not take into account the interests of both the majority and minority shareholders who are affected by the sudden take over of the banks. While others have gone as far as saying that the CBN’s move i.e. taking over the banks is part of Sanusi’s efforts to introduce and implement his so called Islamic banking. Other commentators have said it sends panic to the rest of the banks signalling that there is no due process any more since any bank can be affected any day.

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