Section 49: Financial assistance.

(1) The Corporation shall, under section 4 (b) of this Act, at the request of an insured institution or the Central Bank of Nigeria, under such conditions as may be specified by the Corporation, and upon notice to the Central Bank of Nigeria in the case of a request by an insured institution, assist the insured institution if the Corporation determines that-
(a) the insured institution has difficulty meeting its obligations to its depositors and other creditors;
(b) the insured institution persistently suffers liquidity deficiency;
(c) the insured institution has accumulated losses which have nearly or completely eroded the shareholders’ fund; or
(d) such assistance is required to prevent the insured institution from failing.
(2) The Corporation may take one or a combination of any of the following actions to provide liquidity support to assist an insured institution-
(a) accept an accommodation bill with interest for a period not more than 90 days maturity exclusive of days of grace and subject to renewal not more than seven times;
(b) purchase or invite eligible investors to purchase the equity and or such assets and or assume any such liabilities of the insured institution;
(c) issue bonds, certificates, debentures, debt instruments and other securities to purchase or assume such assets, equity or liabilities of the insured institution;
(d) take or carry out any other measure to provide financial assistance to the insured institution:
Provided that interest rates that may be applicable to facilities extended to insured institutions under this section shall not exceed the Monetary Policy Rate of the Central Bank of Nigeria.
(3) The conditions to be specified by the Corporation under subsection (1), other than as to tenor and interest, shall be with the concurrence of the Central Bank of Nigeria.