1.8bn bailout for Nigerian banks

Nigerian banking stocks fell sharply yesterday and the naira currency weakened as financial markets digested an unprecedented €1.8 billion bailout of five undercapitalised banks.

Central bank governor Lamido Sanusi said Fridays rescue of Afribank, Finbank, Intercontinental Bank, Oceanic Bank and Union Bank should restore confidence to the markets in the long term.

The five institutions had run up bad loans worth a total of €5.4 billion. – (Reuters)