The Central Bank of Nigeria (CBN) withdrew the operating licences of the affected banks on Monday following their failure to meet the new capital requirement of 25bn naira (US$188m).

Obasanjo accused the banks' directors of mismanaging money kept with them and vowed to prosecute them.

He said the new capital requirement was part of the government's economic and financial reform programmes, adding that the government had no apology to give over the policy.

Twenty-five mostly private banks, including four foreign-owned banks, were able to meet the December 31 2005 deadline on the new capital requirement.

Central Bank of Nigeria Head Office, Abuja, Nigeria.

13 banks liquidated in Nigeria
     ( January 3, 2006 )

The Central Bank of Nigeria (CBN) has liquidated 13 commercial banks which failed in their efforts to recapitalise or merge with other banks, the CBN said on Tuesday. Twenty-five mostly private banks at the weekend met the CBN December 31 deadline to rake up 25bn naira ($188m, €150m), merge or face liquidation. The 13 banks were unable to meet the deadline and conditions set by the CBN. The CBN statement said: "The general banking public is therefore advised to henceforth transact their banking business with only these 25 banks." The unfortunate.......    More