CBN Restores Savannah Bank’s License

The Central Bank of Nigeria (CBN) has restored the operational license of                      Savannah Bank of Nigeria Plc and has called on the management of the bank to take necessary measures to re-open the bank to the public as soon as possible.

Savannah Bank had, on February 18, 2002, instituted an action before the Federal High Court, Abuja against the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and the Inspector General of Police (IGP) to challenge the revocation of its banking license by the CBN on February 15, 2002.

The Court of Appeal delivered judgement in favour of the bank on February 5, 2009, ordering its license to be restored to begin operations immediately  

Mr. Festus Odoko, Head Corporate Affairs CBN, said that “CBN as a responsible and law abiding corporate body which earnestly believes in the rule of law and more so, in the over riding interest of the suffering depositors, whose funds have been trapped in the past seven years, has decided not to appeal the judgement of the court and would therefore restore the operating license of the bank”.

According to Mr. Odoko, the Financial Sector Surveillance Committee of the Central Bank of Nigeria met February 19, 2009, and reviewed the judgement given by the Court of Appeal in the case of Savannah Bank of Nigeria Plc Versus Central Bank of Nigeria et al and decided to inform the public “that all actions and measures taken by CBN with respect to Savannah Bank of Nigeria Plc had been in the interest of its depositors in particular, and the banking system in general.

 He said “the CBN is not satisfied with the judgement of the Court of Appeal and that the   Committee believes there are sufficient grounds of appeal at the Supreme Court.

He assured all Nigerians that both the CBN and NDIC are committed to ensuring that the Nigerian banking system remains safe and sound and will continue to take all necessary measures to protect all depositors and members of the banking public.

In line with the above, the apex bsank decided to restore the operational license of Savannah Bank.