(L-R) Mr. Nduka Obaigbena, president, Newspaper Proprietors Association of Nigeria and one of the speakers, Ms Suzanne Legault of Canadian Informatio Commission at the association's town hall meeting on deepening the FoI Act in Lagos.

There are strong indications that the Central Bank of Nigeria (CBN), has perfected plans to take over rescued banks that are unable to complete their re-capitalization at the expiration of the September 30 deadline.
PHB Plc, Oceanic Bank International Plc, Spring Bank Plc and Afribank Nigeria, BusinessWorld gathered, may have been pencilled down by the apex bank for eventual take over because they are not likely to attract investors before the expiration of the September deadline. According to the CBN sources, since no investor has indicated interest to invest in any of them, it is unlikely that they will complete their recapitalisation process by the end of September.
A CBN source, however, said that even though the apex bank has begun preparing for the takeover of these banks, the institutions are still being encouraged to make effort to recapitalise.
It was not clear last week whether Fidelity Bank Plc will assume its preferred bidder role and begin negotiations for the acquisition of Afribank even as indications were rife that the CBN consultants rated the bank higher than the eventual winners, Vine Capital, whose ambition has been scuttled by the apex bank. However, wrangling between Afribank board and its management over recapitalisation has not helped the future of the bank. But as far as the CBN is concerned, Fidelity Bank remains the reserved bidder.
Dr. Kingsley Moghalu, deputy governor, financial system stability, CBN, last week in Lagos, confirmed that the deadline for the rescued banks’ recapitalization would not be changed.
“It is critical that the recapitalization of banks is completed in as timely a manner as possible as the rescued banks remain in a fragile condition. Now that we have Transaction Implementation Agreements (TIAs) with three banks, the next major step is to seek various regulatory approvals”.
Moghalu said that for the banks that have signed the TIAs, what is needed would be fast-tracking of approvals. He however said that for banks that were not able to recapitalize the CBN would make sure that no “depositor or creditor will suffer any loss in any of the banks.”
BusinessWorld Intelligence gathered that the apex bank would through the instrumentality of the Assets Management  Corporation of Nigeria (Amcon) which has already successfully acquired the bulk of the non-performing loans in the rescued banks in two tranches, take hold of the banks. In the light of this, Amcon is expected to inject equity into each of the rescued banks to bring their capital back to at least zero level.
Unlike Oceanic, Spring and Bank PHB whose major obstacle in attracting  strategic investors were untidy financial records, which was discovered by consultants and disclosed to investors that showed interest in investing in them initially, Afribank and Vine Capital business agreement, Moghalu said was cancelled because Vine Capital was found wanting in the area of technical competence and experience. He said that Vine Capital also contravened the CBN directive that no strategic investor would invest in more than one of the rescued banks. But it was gathered that Afribank has begun a fresh discussion with another strategic investor.