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Tagged: #NigerianBanks #BankingHistory
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Zoey.
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July 7, 2025 at 2:34 PM #80651
Zoey
ParticipantThrowback: 7 Nigerian Banks That Disappeared — What Really Happened?
Hey everyone,
Nigeria’s banking sector looks strong today — with the likes of GTB, Zenith, Access Bank dominating the scene. But if you’ve been around long enough, you’ll remember there was a time when dozens of banks filled the space… and many of them are no longer around.
These weren’t just small players either. Some were big names with hundreds of branches, flashy branding, and strong customer loyalty. But over time, due to bad loans, poor leadership, and CBN reforms, they vanished.
Here’s a list of 7 once-popular Nigerian banks that no longer exist, and how they went under 👇
🏦 1. Savannah Bank
One of the most dramatic collapses in Nigeria’s financial history. With over 140 branches, Savannah Bank was suddenly shut down in 2002 by the CBN for an inadequate capital base and regulatory violations.Though its license was reinstated in 2009 after legal drama, the bank has never resumed full operations.
🏦 2. Societe Generale Bank of Nigeria (SGBN)
Remember SGBN? Founded by the Saraki family, it was well-known in the ‘90s and early 2000s. But it couldn’t meet the CBN’s ₦25 billion recapitalisation requirement in 2006.Interestingly, it later re-emerged under a new name — Heritage Bank — after acquiring a license through Enterprise Bank.
🏦 3. Oceanic Bank
Oceanic was a big deal. Strong in both corporate and retail banking. But things went south fast during the 2008/2009 global financial crisis.The CBN uncovered insider lending and massive fraud. The CEO, Cecilia Ibru, was convicted after a plea deal. Oceanic was merged into Ecobank by 2011.
🏦 4. Bank PHB (Platinum Habib Bank)
Flashy branding, aggressive marketing — Bank PHB was everywhere in the late 2000s. But behind the scenes, they were failing to recapitalise.In 2011, the CBN pulled the plug. Its assets were transferred to Keystone Bank, which still operates today.
🏦 5. Spring Bank
Created from the merger of six smaller banks during the 2005 reform wave, Spring Bank struggled from the get-go.It eventually folded in 2011 due to poor liquidity, mismanagement, and failure to recapitalise. Its remains were absorbed into Enterprise Bank, and later merged into Heritage Bank.
🏦 6. Afribank
One of Nigeria’s oldest banks — founded in 1959 — Afribank was a household name.But when banking reforms hit in 2011, Afribank couldn’t keep up. The CBN took over and transferred its assets to Mainstreet Bank, which was eventually bought by Skye Bank.
🏦 7. Allstates Trust Bank
Another victim of the 2005 recapitalisation policy. Allstates Trust couldn’t raise the new ₦25 billion capital base or merge successfully.With compliance issues also on the table, the CBN revoked its license and the bank disappeared.
🧾 Why Did So Many Banks Fail?
There’s a clear pattern:Poor internal controls
Insider abuse and corruption
Weak capital base
Non-compliance with regulations
A lot changed under Sanusi Lamido Sanusi (then CBN governor). His strict enforcement of recapitalization and anti-fraud policies led to a massive clean-up of the system.💬 What do you remember about these banks?
Did you bank with any of them? Know someone who lost money when they collapsed? Share your experience below. Let’s talk about Nigeria’s banking evolution 👇
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