Section 12: Revocation of Banking Licence.

(1) Notwithstanding the provisions of this Act or any other law, the Governor may, with the approval of the Board and by notice published in the Federal Government Gazette, or print and electronic media, revoke any licence granted under this Act if a bank-
(a) ceases to carry on in Nigeria the type of banking business for which the licence was issued for any continuous period of six months or any period aggregating six months during a continuous period of 12 months;
(b) goes into liquidation or is wound up or otherwise dissolved;
(c) fails to fulfil or comply with any condition subject to which the licence was granted;
(d) has insufficient assets to meet its liabilities;
(e) conducts its business in an unsound manner or its directors engage in unsafe practices;
(f) is involved in a situation, circumstance, action or inaction which constitutes a threat to financial stability;
(g) fails to comply with any obligation imposed upon it by or under this Act, or the Central Bank of Nigeria Act or any other rule, regulation, guideline or directive made hereunder;
(Act No. 7, 2007.)
(h) is, in the opinion of the Bank critically under capitalised with a capital adequacy ratio below the prudential minimum or such other ratio as the Bank may prescribe;
(i) fails to commence banking operations within 12 months following the grant of a licence; or
(j) fails to comply with the provisions of Section 9 or 13 of this Act.
(2) Where the licence of a bank has been revoked under this Act and the Governor is satisfied that it is in the public interest to do so, the Governor may, subject to the approval of the Board and without waiting for any period prescribed for doing anything under this Act or any law to lapse, appoint the Nigeria Deposit Insurance Corporation (in this Act referred to as "the Corporation”) as a liquidator of the affected bank and the Corporation shall have the powers conferred on a liquidator by or under the Companies and Allied Matters Act and shall be deemed to have been appointed a liquidator by the Federal High Court for the purpose of this Act.
(CAMA, Act No. 3, 2020.)
(3) Notwithstanding the provisions of this Act, the Companies and Allied Matters Act or any other law, where the Bank has revoked any licence granted under this Act and the Bank has appointed the Corporation as a liquidator pursuant to subsection (2), the Corporation shall immediately proceed with the liquidation of the bank whose licence has been revoked and the payment of assured deposit liabilities pursuant to the Nigeria Deposit Insurance Corporation Act.
(CAMA, Act No. 3, 2020.) (Cap. N102 LFN, 2004.)
(4) An action to challenge the revocation of the licence of a bank, specialised bank or other financial institution on any ground shall only be instituted in the Federal High Court, and such action and any appeal arising therefrom heard and determined on an expedited and accelerated basis.
(5) No action in respect of the revocation of the licence of a bank, specialised bank or other financial institution shall be filed or maintained unless such action is filed within 30 days from the date of the revocation.
(6) Notwithstanding the provisions of this Act or any other enactment, no restorative or like order shall be granted against the Bank or Governor in any action, suit or proceeding in relation to the revocation of a licence by the Bank under this Act, and the remedy of any claimant or applicant against the Bank or Governor in any such action, suit or proceeding is limited to monetary compensation not exceeding the equivalent of the value of the paid-up capital of the bank at the time of the revocation of its licence.