Prof Soludo, CBN Chief gave a presentation on March 30th and emphatically declared that no bank will be allowed to fail.

He said that banks in distress may be given loans, have their management restructured or be forced to merge with another bank. he stated that Nigerian banks have among the biggest cushions against losses in the world. According to Bloomberg data, their capital adequacy ratio (measure of capital against risk-weighted assets) is at 22% compared with 18.4% for financial companies on the S&P 500.

He also stated that the framework for CBN’s contigency planning include:

- Keep vigilance on early warning signals through rigorous examinations
- If chronic liquidity problems— provide term loans; target examination, and seek restructuring of balance sheet and management
- If solvency problem: Could change Management, and strategic plan to recapitalize bank, including possibility of merger with/acquisition by stronger bank
- Encourage banks to strengthen/ review bank-specific contingency plans
- Reviewing the draft Asset Management Company of Nigeria (AMCON) bill— to be established to buy up toxic assets of banks (if necessary)