Govt injects N679b today
SEC places Spring, Afribank, Bank PHB shares on suspension
FROM today, the Federal Government will begin a fresh injection of N679 billion into the three banks it nationalised at the weekend.
They are also to enjoy inter-bank guarantee extended to other banks that have taken steps to fully recapitalise.
Ahead of the exercise, the government yesterday named a seven-man board each for the affected outfits.
A key aspect of the decision was the inclusion of notable former bankers as helmsmen of the new banks.
The government, which is pursuing the repositioning of the banks through the Asset Management Corporation of Nigeria (AMCON) appointed former Managing Director and Chief Executive Officer (MD/CEO) of First Bank of Nigeria (FBN) Plc, Mr. Jacob Moyo Ajekigbe as the chairman of Keystone Bank Limited (former Bank PHB) and Mr. Oti Ikomi as the Managing Director. Ikomi was former Executive Director, and member of the Board of Credit Committee of Oceanic Bank Plc.
Other executive members of the board are Mr. Shehu Abubakar, Mr. Demola Adewale, Mrs. Yvonne Isichei, Dr. Shehu K. Mohammed, and Mr. Raphael Ereyi.
For Mainstreet Bank Limited (Afribank), Mr. Falalu Bello, a former MD/CEO of Unity Bank Plc, is chairman while Mrs. Faith Tuedor-Matthews is the MD/CEO. Tuedor-Matthews was former Deputy Managing Director of United Bank for Africa (UBA, North); Mr. Kola Ayeye, Abubakar Sadiq Bello, Mr. Bolaji Shenjobi, Mr. Anogwi Anyanwu, Mr. Roger Woodbridge are executive directors.
Mr. Emeka Onwuka, who served as MD/CEO of Diamond Bank Plc, is the chairman of Enterprise Bank Limited (Spring Bank).
Mr. Ahmed Kuru, a former Executive Director of Bank PHB Plc, is the MD/CEO.
Other executive directors on the board are Mrs. Louisa Olalokun, Mrs. Nneka Onyeali-Ikpe, Mr. Aminu Ismail, Mr. Niyi Adebayo, and Mr. Audu Kazir.
AMCON in a statement yesterday said it had concluded arrangement to inject the N679 billion into the three banks today. It said the Central Bank of Nigeria (CBN) has also granted them inter-bank guarantee as it did for the others, which signed Transaction Implementation Agreements (TIAs) until December 31, 2011.
"The banks are therefore fully capitalised, strengthened and well positioned for future growth," AMCON said.
The boards are mandated to manage these banks along best commercial practice to compete effectively in the Nigerian banking sector and provide quality services to their customers. "Depositors are again assured that their deposits are safe, and employees are also assured of seamless continuity of business operations and job functions.
"Other members of the board will be announced imminently," it said.
In an interview with The Guardian at the weekend, a top official of the CBN said the apex bank had been monitoring developments in the sector since last Friday and was aware that many customers had been withdrawing their money from the three banks through Automated Teller Machines (ATMs).
He hinted that the CBN had provided adequate means to contain panic withdrawals from today.
According to him, with our past experiences during the failed banks' era, it is only normal for depositors to take such step of withdrawing their funds.
The official, however, said this particular scenario is different as the apex bank since the beginning of this problem in 2009 had insisted on protecting the depositors.
He assured that the three banks have enough funds to cater for the depositors' demand from today and beyond.
The apex bank in a statement at the weekend, had noted that it was aware of, and supports the decision of the Nigeria Deposit Insurance Corporation (NDIC) to exercise its statutory powers under the Nigerian Insurance Deposit Corporation Act, to establish Enterprise Bank Limited, Keystone Bank Limited, and Mainstreet Bank Limited as bridge banks, and by Purchase and Assumption Agreements, cause all the deposit liabilities and certain other liabilities and the assets of Spring Bank Plc, Bank PHB Plc, and Afribank Nigeria to be assumed by the three bridge banks, effective August 5, 2011.
The Securities and Exchange Commission (SEC) yesterday approved the placement of the shares of Afribank, Bank PHB and Spring Bank on full suspension. Full suspension means that there will be no trading on the shares of the said banks.
The commission said the decision is intended to maintain what it described as "market integrity."
SEC also said to protect investors, it had approved that the Nigerian Stock Exchange (NSE) place the shares of Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc and Union Bank Nigeria Plc on technical suspension. Technical suspension means that trading on the shares can continue without any change in price.
In compliance with the CBN requirements for recapitalisation, the four banks have executed Transaction Implementation Agreements (TIAs) with core investors.
SEC in the statement signed by its head of media, Mr. Lanre Oloyi, explained that the actions of the NDIC, the CBN, and AMCON are significant steps towards the resolution of the banking crisis. .
"Indeed, the commission believes these actions will accelerate the recovery of the Nigerian capital market", he said.
The Guardian