CBN Insists on Acquisition of Troubled Banks
- By Simeon Ogoegbulem
- Published June 13th, 2011
- News
- Unrated
The Central Bank of Nigeria has vowed it would not allow shareholders to frustrate the mergers and acquisitions being put in place for the eight troubled banks in the country. The CBN had recently given the eight troubled banks up to September 30 to recapitalize or face outright liquidation.
Mr Sam Oni, director of banking supervision in the apex bank, stated that the so called “shareholders” who are laying claim to the banks are not the true owners of the banks. Oni, who spoke at the end of bankers committee meeting in Abuja, submitted that ”technically the banks are gone.”
According to him, the shareholders have nothing to lay hands on because if “we put out those guarantees today, the shareholders have nothing. The CBN injected N620 billion into the banks when it intervened in the banks two years ago.
The apex bank stated that the policy of limiting cash transaction in the economy to a maximum of N150, 000 for an individual and N1 million for corporate entities per day would commence in Lagos by December. The policy would become fully operational in other parts of Nigeria in June next year.
Godwin Emefiele, managing director of Zenith Bank Plc, said at the meeting that the choice of Lagos as a pilot project was informed by the fact that Lagos is the economic hub of the country.
Emefiele stated that the bankers committee agreed that it is not just enough to put a policy on ground but it is also good to put in place proper process that will make it work.
“We would start an implementation project with Lagos State under what we called operation cashless Lagos,” he said. “That would entail aggressive deployment of ATMs in all banks in the country that customers would use anytime they want.” He said they are working with telecommunications industry to ensure that transactions are carried out in cards because carrying cash is very cumbersome and costly.
By December this year, the bankers said they would deploy about 40, 000 ATMs in various parts of Lagos, adding that 75, 000 ATMs would be deployed by June 2012 and 150, 000 ATMs per 100 persons by December 2012. “And by 2015 we are trying to see if we can match the Brazilian experience,” Emefiele said.
Mr Sam Oni, director of banking supervision in the apex bank, stated that the so called “shareholders” who are laying claim to the banks are not the true owners of the banks. Oni, who spoke at the end of bankers committee meeting in Abuja, submitted that ”technically the banks are gone.”
According to him, the shareholders have nothing to lay hands on because if “we put out those guarantees today, the shareholders have nothing. The CBN injected N620 billion into the banks when it intervened in the banks two years ago.
The apex bank stated that the policy of limiting cash transaction in the economy to a maximum of N150, 000 for an individual and N1 million for corporate entities per day would commence in Lagos by December. The policy would become fully operational in other parts of Nigeria in June next year.
Godwin Emefiele, managing director of Zenith Bank Plc, said at the meeting that the choice of Lagos as a pilot project was informed by the fact that Lagos is the economic hub of the country.
Emefiele stated that the bankers committee agreed that it is not just enough to put a policy on ground but it is also good to put in place proper process that will make it work.
“We would start an implementation project with Lagos State under what we called operation cashless Lagos,” he said. “That would entail aggressive deployment of ATMs in all banks in the country that customers would use anytime they want.” He said they are working with telecommunications industry to ensure that transactions are carried out in cards because carrying cash is very cumbersome and costly.
By December this year, the bankers said they would deploy about 40, 000 ATMs in various parts of Lagos, adding that 75, 000 ATMs would be deployed by June 2012 and 150, 000 ATMs per 100 persons by December 2012. “And by 2015 we are trying to see if we can match the Brazilian experience,” Emefiele said.
