By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Corporation (NDIC) Wednesday debunked Newspaper publications that a Federal High Court sitting in Lagos Tuesday November 15 2011, restrained Mainstreet Bank Limited, Keystone Bank Limited and Enterprise Banks Limited all three nationalised Banks from operationing.

This was contained in a Joint Statement posted on the website of Nigeria’s Central Bank signed by Mohammed Abdullahi and H.S Birchi, Head, Corporate Communications of both Agencies respectively.

The Newspaper reports Wednesday say the Federal High Court have restrained the above mentioned three Banks which inherited the Assets of the three Nationalised Banks Spring Bank Plc, Afribank Plc and BankPHB Plc from further dealing in the Assets, Businesses and Operations of the defunct Banks pending the determination of the suit filed by some aggrieved shareholders of the Banks.

According to the publication, Justice Charles Archibong, the Trial Judge, , granted the order, following an ex-parte application, by some shareholders of the Banks, who are challenging the revocation of their Banks operational licences by the Nigeria’s Central Bank and subsequent takeover of these Banks by the Nigeria Deposit Insurance Corporation (NDIC) and the Assets Management Corporation of Nigeria (AMCON).

The Statement affirmed that the attention of the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) has been drawn to a publication in ThisDay Newspaper of Wednesday 16th November, 2011 and a news report by Channels Television station, on the 15th of November, 2011, with respect to a purported order of the Federal High Court , allegedly granted by Justice Charles Archibong restraining Keystone Bank Limited, Enterprise Bank Limited, and Mainstreet Bank Limited from continuing operation and also restraining the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation from taking certain steps in relation to the said banks.

“The CBN and the NDIC state categorically and with all sense of responsibility that we are not aware of any such order as no such order has been served on either the CBN or the NDIC Consequently, both the CBN and the NDIC wish to inform the general public that Keystone Bank Limited, Mainstreet Bank Limited and Enterprise Bank Limited are Banks duly licensed by the CBN and are thus authorised to carry on banking business” the Joint Statement said.

The CBN and NDIC, however, advised all customers of the Nationalised Banks and the general public to continue doing business with the Banks.

“We thus urge all customers of the said banks as well as the general public to continue transacting their business with the Banks as hitherto done and hereby issue our assurances once again that all depositors’ funds in these institutions are safe and Banking Operations will continue as normal. These Banks are fully insured by the NDIC and all depositors are assured of the safety of their funds” the Statement said.

 This is coming on the heels of The shareholders contending in the suit that the revocation of the licenses of the Nationalised Banks by Sanusi Lamido Sanusi, Governor of Nigeria’s Central Bank was prejudicial to their rights to invest in Public Quoted Companies in accordance with the Nigeria Investment Promotion Commission (NIPC) Act and the Investment and Security Act.

They want the court to declare that the action of CBN, NDIC and the AMCON in taking over the Banks in question was a breach of their fundamental human rights to freedom from compulsory acquisition of property as guaranteed by the constitution.

As earlier reported, on Friday August 05 2011, the Federal Government (FG) through the NDIC and Nigeria’s Central Bank revoked the licenses of Afribank Plc, BankPHB Plc and Spring Bank Plc and thus nationalising them and creating three Bridge Banks namely Mainstreet Bank , Keystone Bank and Enterprise Banks.