By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Former Spring Bank Plc, now Enterprise Bank Limited has refunded the N60 billion bailout funds it received from the Central Bank of Nigeria Plc (CBN) in year 2009. InvestAdvocate gathered Tuesday August 09 2011 in Lagos Nigeria.

This is coming on the heels of the injection of N678.5 billion Friday August 05 2011 by the Asset Management Corporation of Nigeria (AMCON), set up to buy bad debts in the Banking Sector of the Nigerian Economy.

AMCON injected the funds to enable it acquire Afribank, Bank PHB and Spring Bank taken over through Bridge Banks by Nigeria Deposit Insurance Corporation (NDIC) same Friday August 05 2011 and renamed Main Street Bank Limited, Keystone Bank Limited and Enterprise Bank Limited respectively.

Mustafa Chike-Obi, AMCON Managing Director (MD) had affirmed at a Press Briefing that the reason for the development was to bring each institution to about 15 percent (15%) of Capital Adequacy and to enable them continue to run as going concerns.

According to Chike-Obi, this was done with a lot of thought, a lot of consultation and the primary objective is to stabilise the Banking Industry. “No depositor will lose a kobo” he affirmed.

The AMCON, the CBN and other relevant Stakeholders have assured Depositors that their funds are safe, and the staff would also retain their jobs. “The banks will operate from a stronger position than they were. AMCON will oversee them, Management will run them and the Central Bank will regulate the Banks” Chike-Obi said.

A breakdown of the N678.5 billion showed that former Spring Bank now Enterprise Bank got N110.5 billion through Bonds.

As earlier reported, the CBN nationalised the three Banks by revoking their licenses; and transferring their Assets and Liabilities to the newly formed ‘Bridge Banks’ by NDIC last Friday.

The Nigeria’s Central Bank concerned about the state of some of the Nigerian Banks after the Global Financial Crisis in Mid year 2008, and the overall stability of the financial system, commissioned special examinations on all 24 banks in Nigeria.

These examinations by the CBN highlighted significant deficiencies in capital adequacy and liquidity requirements, and illustrated major weaknesses in corporate governance and risk management practices.

According to the CBN, following the examination, it was clear that nine Banks were in a ‘Grave Situation’, these Banks include Oceanic Bank International Nigeria Plc, Union Bank of Nigeria Plc, Intercontinental Bank Plc, Bank PHB Plc, Afribank Nigeria Plc, Finbank Plc, Equitorial Trust Bank Ltd, Spring Bank Plc and Wema Bank Plc.

The CBN has given the Banks until September 2011 end to recapitalise or be liquidated.