Four months after the Court of Appeal ruled that the licence of Savannah Bank Plc be restored, the financial sector regulators have finally handed over the bank's documents to its owners and granted them access to their premises nationwide.
Authorisation restored
Amidst cheers and jubilation, Savannah Bank of Nigeria Plc on Tuesday, reopened for business and financial operations, as the Nigerian Deposit Insurance Corporation and the Central Bank of Nigeria,(CBN), handed over the bank's licence and office keys to the bank's chairman, Jim Nwobodo.
The bank had 104 branches nationwide and employed more than 2,500 people, at the time of closure.
At the handover ceremony at the bank's headquarters on Broad Street in Lagos, Ganiyu Ogunleye, the Managing Director of the Nigerian Deposit Insurance Corporation, said: "The bank was liquidated on February 18, 2002, but the owners were not satisfied with the decision and went to court. On March 4, 2002, the Federal High Court ruled that their licence be restored and in compliance, the Nigerian Deposit Insurance Corporation suspended activities.
"The bank had 104 branches and we closed 59 of the branches; we were already working on another 20, while we didn't have access to 25. However, the police were deployed to the branches for security. In 2006, the Federal High Court stated that the revocation was unlawful. In 2009, the Court of Appeal ruled that the revocation was not in accordance with the law.
"On April 21, we had a public interaction with owners of the bank. We are ready to work with them and assist them in whatever way we can. This is the final stage on our part, whatever issues would be between the bank and the Central Bank of Nigeria. However, Nigerian Deposit Insurance Corporation would be willing to assist."
CBN takes over procedure
A representative from the Central Bank of Nigeria present at the event also accepted that further discussion would be between the Central Bank of Nigeria and the bank. "This is the first step. It would take a while before the bank can open its doors to the public. They still need to make some more arrangement."
Richard Abraham, the interim chairman of the bank, when asked how prepared he was to face the challenge, said: "As a team, we would be ready to meet the challenge. We would be working with all stakeholders."
Staff and depositors
The CEO of the bank, while appreciating the patience of all concerned, also promised to look into depositors' accounts and get back to them as soon as arrangements were concluded. He also promised to keep in touch with the ex-staff of the bank who came out in large numbers, dressed in suits and ready to work.
Bank logo changed
Mr. Nwobodo, while launching the bank's new logo, said that the bank was heading for success. "I dedicate this bank to the Almighty God and with God on our side, this bank would be successful." He also promised to remain in touch with the public as much as possible. "You will continue to hear from us and we keep you engaged as the process continues."
Four months ago, the Central Bank of Nigeria was ordered to restore with immediate effect, the licence of Savannah Bank of Nigeria Plc, which it revoked without adequate notice seven years ago.
The ruling was given on February 5, 2009, by the Court of Appeal after about forty proceedings between 2002 and 2006.
The court, presided over by Justice Uwani Abba-Aji, held that the revocation of the bank's licence was done in bad faith.
It awarded ₦100 million damages against the Central Bank of Nigeria and the Nigerian Deposit Insurance Corporation for the unlawful revocation of the licence and also restrained the two regulatory bodies from winding the bank up, while restraining the regulatory bodies from using security officials to harass the bank.
Savannah Bank of Nigeria Plc was also given 18 months to pay the ₦25 billion mandatory re-capitalisation funds to the regulatory bodies. The bank still has about eleven months left to meet all the conditions given by the Court of Appeal.
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