Section 54: Bridge banks.

(1) The Corporation, with the concurrence of the Central Bank of Nigeria, may organise and incorporate, and the Central Bank of Nigeria shall issue a banking licence to one or more banks, to be referred to as bridge banks which shall be insured institutions to assume such deposits or liabilities, and shall purchase such assets of a failing insured institution and perform any other function or business as the Corporation may determine.
(2) The Corporation shall appoint, remove and fix the remuneration of the board of directors and management of such bridge bank.
(3) Notwithstanding the provisions of the Companies and Allied Matters Act, the Central Bank of Nigeria Act, the Banks and Other Financial Institutions Act, or any other law, the bridge bank shall not be subject to any requirement relating to issued or paid-up capital, and the Corporation may make available to the bridge bank, upon such terms and conditions, and in such form and amounts, as the Corporation may determine, funds for the operation of the bridge bank.
[Act No. 3, 2020; Act No. 7, 2007; Act No. 5, 2020]
(4) The Central Bank of Nigeria, the Corporate Affairs Commission, the Securities and Exchange Commission, the Nigerian Exchange Group, the Federal Inland Revenue Service and any other regulatory or supervisory authorities shall, at the request of the Corporation, grant to a bridge bank forbearance, exemptions and waivers in respect of any fees howsoever described (including incorporation, licensing and registration fees), and all levies, duties, taxes or other imposts.
(5) The operation of a bridge bank shall, unless extended as provided, terminate at the end of two years from the date it was issued licence and the Corporation may in its discretion extend the period of operation of a bridge bank for a maximum of three additional one-year periods.
(6) The status of a bridge bank shall terminate upon the earliest of the-
(a) merger or consolidation of the bridge bank with an insured institution that is not a bridge bank;
(b) sale of a majority of the equity of the bridge bank to any person other than the Corporation and another bridge bank;
(c) assumption of all or substantially all deposit and other liabilities or the acquisition of all or substantially all the assets of the bridge bank by an insured institution that is not a bridge bank; or
(d) expiration of the period provided in subsection (5) or the earlier dissolution of the bridge bank by the Corporation before the expiration of the time provided or as extended by the Corporation under this Act.
(7) The Corporation shall be appointed liquidator of a bridge bank whose status has been terminated.
(8) Following the merger or consolidation or sale of the equity or assumption of the deposits or acquisition of the assets of the bridge bank as provided in subsection (6), the resulting entity shall for all purposes be an insured institution.