What Happened to Shares in Nigerian Banks That No Longer Exist?

Most Nigerian banks whose names have disappeared ended in one of two ways. Either the bank was merged into or acquired by another bank, in which case its shareholders normally received shares in the successor, sometimes with cash as well; or the Central Bank of Nigeria (CBN) revoked the bank's licence and moved its business to a new bank, in which case nothing passed to the old shareholders. Which of the two applies to an old certificate depends entirely on the bank named on it.

Three Periods That Removed Most of the Old Names

2004 to 2005: the consolidation

In July 2004 the CBN raised the minimum capital of a Nigerian bank from ₦2 billion to ₦25 billion, with a deadline of December 2005. Banks merged or were acquired to reach the new figure, and the number of banks fell from 89 to 25, later 24. Many names on certificates from the 1980s and 1990s disappeared in this period. Their shareholders generally became shareholders of the merged bank, and several of those merged banks have themselves since been renamed, merged again or failed, which is why a trail can run through two or three names.

2009 to 2012: the CBN intervention and AMCON

In August 2009 the CBN removed the chief executives of five banks: Afribank, Intercontinental Bank, Oceanic Bank, Union Bank and FinBank. In October 2009 it did the same at Bank PHB, Equitorial Trust Bank and Spring Bank. The Asset Management Corporation of Nigeria (AMCON) was created by statute in 2010. The CBN later explained that five of the eight banks signed transaction implementation agreements with new investors or acquirers, with their recapitalisation completed in 2011, while the other three were replaced by new banks fully capitalised by AMCON.

Since 2012: further mergers and failures

Diamond Bank merged into Access Bank in 2019. Skye Bank lost its licence in 2018 and its business passed to Polaris Bank. Union Bank of Nigeria left the exchange in 2023 after a scheme of arrangement with Titan Trust Bank.

Bank by Bank: Where the Shares Went

• Oceanic Bank International Plc (2011): acquired by Ecobank Transnational Incorporated (ETI). Oceanic shares were cancelled and holders received ETI ordinary shares and ETI convertible preference shares. Former holders became ETI shareholders.
• Intercontinental Bank Plc (2011 to 2012): recapitalised by Access Bank and then merged into it. Holders received 1 Access Bank share for every 4 Intercontinental shares. Access Bank shares were later exchanged one for one into Access Holdings Plc shares.
• FinBank Plc, formerly First Inland Bank (2012): acquired by First City Monument Bank (FCMB) and then merged into it. The terms were 1 FCMB share for every 60 FinBank shares. FCMB shares were exchanged one for one into FCMB Group Plc shares in 2013.
• Equitorial Trust Bank (2011): combined with Sterling Bank Plc after the shareholders of both banks approved it in September 2011. Sterling Bank's registrar can confirm what an individual ETB holding became.
• Diamond Bank Plc (2019): merged into Access Bank. Holders received ₦1.00 in cash for every share plus 2 Access Bank shares for every 7 Diamond Bank shares. Those Access Bank shares are now Access Holdings shares.
• Afribank Nigeria Plc (2011): licence revoked in August 2011 and the business moved to Mainstreet Bank Limited, a new bank owned by the state. Shareholders received no shares in Mainstreet.
• Bank PHB Plc (2011): licence revoked in August 2011 and the business moved to Keystone Bank Limited. Shareholders received no shares in Keystone.
• Spring Bank Plc (2011): licence revoked in August 2011 and the business moved to Enterprise Bank Limited. Shareholders received no shares in Enterprise.
• Skye Bank Plc (2018): licence revoked in September 2018 and the business moved to Polaris Bank Limited, capitalised by AMCON. Skye Bank shares were delisted in August 2019 and shareholders received no shares in Polaris.
• Union Bank of Nigeria Plc (2023): minority shares acquired by Titan Trust Bank for cash under a scheme of arrangement, and delisted in November 2023.

Each of these has its own article with the terms, the dates and the registrar that now keeps the records. They are listed at the end of this page.

What an Old Bank Certificate Means Today

Where the bank was merged or acquired, the certificate records a holding that was converted into something else under a court-sanctioned scheme. The entitlement now is the successor's shares, plus any cash consideration and any dividends paid on those shares since. None of that is lost because the old certificate was never presented. Successor shares for holders without a Central Securities Clearing System (CSCS) account were typically kept in a registrar account, and unpaid cash was held to be claimed.

Where the licence was revoked, there was no exchange into a successor. The old company's shares no longer trade, and the bank that took over the business was a different company owned by the state. The certificate is a record of a past investment rather than a claim on the new bank.

How to Trace a Holding in a Bank That No Longer Exists

1. Gather everything with the old bank's name on it: certificates, dividend warrants, allotment letters, rights circulars and any Clearing House Number (CHN).
2. Use the list above to find out whether the bank was merged, acquired or closed, and which company succeeded it.
3. For a merged or acquired bank, write to the successor's current registrar, named in its latest annual report or dividend notice, and ask what the old holding became, whether any shares are held in a registrar account, and whether any cash or dividends are unpaid.
4. Complete the registrar's identity and e-dividend mandate requirements so that anything outstanding can be paid.
5. If you want the successor shares in a stockbroking account, they need to be dematerialised and credited to your own CSCS account.

Where the registered holder has died, registrars release shares or money only to the executor or administrator named in a grant of probate or letters of administration. Shares Saver does not handle estates; our articles on inherited shares explain the process.

Frequently Asked Questions

Were all shareholders in failed Nigerian banks wiped out?

No. In most of the 2011 and 2012 rescues the old bank was merged into or acquired by another bank and its shareholders received shares in that bank. Holders were left without a successor holding where the licence was revoked: Afribank, Bank PHB and Spring Bank in 2011, and Skye Bank in 2018.

Does it matter if I never sent in my old certificate?

In a merger or acquisition by scheme, the scheme applied to every shareholder on the register whether or not they did anything. The successor shares and any cash should still be traceable through the registrar.

I was a customer of one of these banks. Was I a shareholder?

Not because of the account. Shareholders are recorded on the register kept by the registrar, and for electronic holdings in the CSCS. Deposits were a separate matter and passed to the bank that took over the business.

Can Shares Saver sell successor shares that I find?

Only once they have been moved into your Shares Saver account, which is held in your own name in your own CSCS account. Shares on a paper certificate must be dematerialised first.