Takeover: Oceanic Bank Shareholders To Sue Cbn

ARRANGEMENTS have been concluded by shareholders of Oceanic Bank Plc., one of the five affected banks in the recent shake-up by the Central Bank of Nigeria (CBN), to seek intervention from the judiciary over the decision of the apex bank to take over the bank.

The CBN recently sacked Mrs. Cecilia Ibru (Oceanic Bank); Sebastian Adigwe (Afribank); Erastus Akingbola (Intercontinental Bank); Barth Ebong (Union Bank) and Okey Nwosu (FinBank), over alleged unethical practices.

Speaking with journalists in Lagos shortly before filing the suit, Mr. Ajibola Oluyede, a principal partner from TRLP Law Chambers, whose firm is handling the case for the shareholders, believed that the shareholders had every right to challenge the apex bank on the development because the takeover would only have been necessary or constitutional if the affected banks had actually complained they were in trouble.

Describing the recent decision of the apex bank as an ambush, which can be likened to a military coup, Oluyede argued that the shareholders were entitled under the law to go to court to challenge the hostile takeover of the bank, since the apex bank had not actually followed the rule of law in carrying out the exercise.

“The whole exercise was an ambush and the way it was carried out can be likened to a military coup d’etat. It is evident that the rights of these shareholders have been infringed upon and the expected reaction from these people, therefore, would be to seek redress in the law court,” he said.

He described the apex bank’s action as capable of setting the nation’s economy 15 years back, since it would hamper Foreign Direct Investment (FDI), to the country, adding “there is de-marketing everywhere and, unfortunately, Nigeria is also de-marketing herself with this action. Foreign investors may be forced to look elsewhere.”

He argued that the apex bank was yet to release any reports on these banks, while the affected CEOs were not allowed fair hearing, adding that the initial round of condemnation received by the affected bank executives was due to the fact that they had not been given the opportunity to defend themselves before coming out with the damning verdict.

Meanwhile, former chairman of Lagos branch of the Chartered Institute of Bankers of Nigeria (CIBN), Mr. Wale Adeyemi, in his reaction to the latest development, argued that while the investors have every right to defend their interest, the CBN governor was also constitutionally empowered, through sections 33, 34 and 35 of the nation’s constitution, to sack any bank CEO, whose financial institution had begun to show signs of distress.

He argued that the problem could be with the approach adopted by the apex bank in carrying this out.
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These shareholders are just fronting as they do not represent the views of all shareholders.