Financial Times FT.com

Nigeria takes control of five banks

By Tom Burgis in Lagos

Published: August 14 2009 20:47 | Last updated: August 14 2009 20:47

Nigeria’s central bank governor dismissed the management of five banks on Friday and promised a $2.6bn bail-out to save the country’s banking system from the risk of a systemic crisis.

Lamido Sanusi’s decision breaks with the cosy relations between banks and regulators that led to an epidemic of reckless lending which threatened to wreck a sector once hailed as a model of African financial sector reform.

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