Section 34: Intervention Powers in Failing Bank.

(1) Where a bank informs the Bank that-
(a) it is likely to become unable to meet its obligations under this Act;
(b) it is about to suspend payment to any extent;
(c) it is insolvent; or
(d) where, after an examination under section 33 of this Act, the Bank is satisfied that the bank is in a grave situation as regards the matter referred to in section 33 (1) of this Act, the Governor may by order in writing, exercise any one or more of the powers specified in subsection (2).
(2) The Governor may, by an order in writing under subsection (1)-
(a) prohibit the bank from extending any further credit facility for such period as may be set out in the order, and make the prohibition subject to such exceptions, and impose such conditions in relation to the exceptions as may be set out in the order, and from time to time, by further order similarly made, extend the period;
(b) suspend any payment or delivery obligations pursuant to any contract to which the bank is a party;
(c) require third party service providers to the bank, to continue to provide services to the bank for such period as may be set out in the order;
(d) require the bank to take any steps or any action or to do or not to do any act or thing, in relation to the bank, its business, its directors or officers which the Bank may consider necessary and which is set out in the order, within such time as may be stipulated therein;
(e) remove, for reasons to be recorded in writing with effect from such date as may be set out in the order, any manager or officer of the bank, notwithstanding anything in any written law or any limitation contained in the memorandum and articles of association of the bank;
(f) notwithstanding anything in any written law or any limitation contained in the memorandum and articles of association of the bank and, in particular, any limitation therein as to the minimum or maximum number of directors, for reasons to be recorded in writing-
(i) remove from office, with effect from such date as may be set out in the order, any director of the bank, or
(ii) appoint any person or persons as director or directors of the bank and provide, in the order, for the person or persons so appointed to be paid by the bank such remuneration as may be set out in the order.
(g) appoint any person to advise the bank in relation to the proper conduct of its business, and provide, in the order, for the person so appointed to be paid by the bank such remuneration as may be set out in the order;
(h) transfer the bank, the whole or part only of the banking business, to third party private purchasers; or
(i) employ any other intervention tool as the Bank may deem fit.
(3) Without prejudice to the provisions of subsection (2), and notwithstanding the provisions of section 34 of the Central Bank of Nigeria Act or anything in any written law or contract or any limitation contained in the memorandum and articles of association of any bank, the Bank shall have power at any time to acquire the shares of any failing bank up to a level that guarantees its control by the Bank:
Provided that the Bank shall dispose of such equity investment in the bank at the earliest suitable time.
(Act No. 7 2007)
(4) If, after taking any or all of the steps stipulated in subsection (2) or such other measures as in the opinion of the Bank may be appropriate in the circumstance including but not limited to the measures and steps under sections 37-42 of this Act, the state of affairs of the bank concerned does not improve, the Bank may invoke its power to revoke the licence of the bank under section 12 of this Act.