CBN bailout another bank with N47.8 billion

The Central Bank of Nigeria increased its Special Intervention Reserves (SIR) to N365 billion in August 2021, data from its money and credit stats shows.

The balance on the account has been N317.2 billion since July 2017 suggesting that a commercial bank may have recently received a cash injection from the CBN. Nairametrics cannot confirm if this is the case or which bank may have received the money assuming this was the case.

The Special Intervention Reserve of the CBN represents all the capital injections made by the apex bank in commercial banks that are distressed. It is unclear which bank this may have been, assuming the money was indeed used for another bailout.

The central bank started accumulating the SIR in 2016 when it reported a balance of N342.3 trillion after bailing out out some commercial banks, notably the defunct Skye Bank.

Nairametrics spoke to some of its sources who suggest it is likely the CBN may have come to the aid of a commercial bank (name withheld) that has been having challenges in recent years. According to a source, industry players suggest the bank, which is not quoted may be undergoing liquidity challenges which the Central Bank is addressing.

Nigeria has not recorded any failed banks since Godwin Emefiele became CBN governor. The bank has adopted a more direct approach in dealing with distressed banks, preferring to inject capital directly into them and appointing a new board and management of the bank, who are tasked to turn it around. Subsequently, the bank is slated for sale to a strategic investor.

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