Sanusi's Inconsistencies:put Banks 4 Sale

The CBN has begun moves to encourage the takeover of the weak banks by  those adjudged strong by the audit that led to the overhaul.


Sanusi met on Monday with the MDs of four banks believed to have come out clean at the end of the recent audit.

The meeting, held at the United Bank for Africa (UBA) head office on Marina in Lagos, was to convince them of the need to acquire some of the eight troubled banks.

Healthy banks being wooed include[b] First Bank, Zenith, and Guaranty Trust

The offer follows the thinking of Sanusi that the banks should remain in the hands of Nigerians, rather than being offered to foreign banks wanting to gain a foothold in the prime Nigerian market.

The CBN is, however, said to be favourably disposed to foreign banks operating in the country – which gives advantage to South Africa’s Standard Bank (operating as Stanbic IBTC Bank), Standard Chartered Bank, and Ecobank Nigeria.

Three of the four big banks are among those that have signified interest in returning to the market to raise fresh capital, the bulk of which is being sought by bond issuance.

First Bank and UBA have received shareholders’ approval for N500 billion bond each, and Guaranty Trust is seeking N200 billion, just like Diamond Bank.

UBA is believed to be interested in Finbank, as part of its expansion drive.

However, at the meeting with Sanusi, the bank chiefs were reportedly non-committal, as some argued that an acquisition cannot be done until after their bond issuance.

Both First Bank and UBA want to undertake a  book building process, which First Bank MD, Bisi Onasanya, told shareholders would help determine how much is needed by the bank.

Sanusi who has repeatedly said the CBN will not  be involve in the sale of this bank and that banks like UBA,ZENITH & FIRSTBANK with over 20% share of tne market will not be allowed to acquird this banks so that other banks can be giving the opportunity to grow.His agenda is begining to unfold.