(Mis)Using Bank Share Capital as a Regulatory Tool to Force Bank Consolidations in Nigeria

TY - JOUR

T1 - (Mis)Using Bank Share Capital as a Regulatory Tool to Force Bank Consolidations in Nigeria

AU - Ogowewo, Tunde

AU - Uche, Chibuike

PY - 2006

Y1 - 2006

N2 - This paper is a critique of the policy-making process and the particular policy choice made by the Central Bank of Nigeria with respect to the recent increase in the minimum share capital requirement for Nigerian banks. The article questions the apparent prioritization by the Central Bank of banking supervision – important though it is – over macro-economic stability. It also draws attention to serious public law issues (breach of monetary law and abuse of power) and the private law implications (conflicts of interests, scheme of arrangement defects, and negligent valuations) of this policy-making episode and policy choice.

AB - This paper is a critique of the policy-making process and the particular policy choice made by the Central Bank of Nigeria with respect to the recent increase in the minimum share capital requirement for Nigerian banks. The article questions the apparent prioritization by the Central Bank of banking supervision – important though it is – over macro-economic stability. It also draws attention to serious public law issues (breach of monetary law and abuse of power) and the private law implications (conflicts of interests, scheme of arrangement defects, and negligent valuations) of this policy-making episode and policy choice.

U2 - 10.1017/S0021855306000143

DO - 10.1017/S0021855306000143

M3 - Article

VL - 50

SP - 161

EP - 186

JO - JOURNAL OF AFRICAN LAW

JF - JOURNAL OF AFRICAN LAW

IS - 2

ER -