The EU's long-term investment arm will provide its largest funding package in sub-Saharan Africa to date to FirstBank, Guaranty Trust Bank and Stanbic IBTC.
All three have passed the Nigerian central bank's audit in 2009. Plutarchos Sakellaris, EIB vice-president, explained that those earmarked for funding should be praised for their capabilities in maintaining strong risk-management policies.
The move is seen as a vote of confidence for the Nigerian economy and its reforms led by the new central bank governor Lamido Sanusi. Mr Sanusi welcomed the funding as the country seeks to regain its reputation in the international capital markets and reform the structural problems of its banking sector. The Nigerian central bank has spent nearly $4bn bailing out banks and removed senior management at eight of the country's leading institutions after audits showed market manipulation and misreporting to regulators by many banks.
The central bank is negotiating with the country's Senate to establish an asset management company to exchange bad bank loans for government bonds, in an effort to free up balance sheets and allow lending in the country again.
Foreign investors are weighing up the possibility of rescuing some of Nigeria's failed banks. First Rand Bank and ABSA Group of South Africa have already expressed an interest, while Standard Bank is also believed to be looking at opportunities to expand in one of its key strategic markets.
