THERE are strong indications that the Central Bank of Nigeria (CBN) has acceded to plans by some local banks to acquire the weak banks in the country. A reliablesource at the apex bank told the Nigerian Tribune in Lagos that the proposal was being considered alongside others, by the relevant authorities in the apex bank, adding that at the end of the day, the rescued banks would be better off.
Some of the banks otherwise confirmed healthy and sound by the joint audit probe instituted by the CBN and the Nigeria Deposit Insurance Corporation (NDIC) on all the banks recently had indicated intentions to acquire the troubled banks which include Intercontinental Bank, Oceanic Bank, Afribank and FinBank. Others are Bank PHB, Unity Bank, Spring Bank, Unity Bank, Equitorial Bank and Wema Bank.

The rescued banks have been a subject of controversy in the financial sector. The apex bank which had injected a bailout fund of N620 billion into eight of the banks had insisted that with the state of the balance sheet of the banks, their share capitals had been wiped out and this had been interpreted to mean that the shareholders had lost their investments.

According to CBN governor, Sanusi Lamido Sanusi, the result of the audit of the 24 banks indicated that the non-performing loans of most of the banks exceeded their share capital, which put the balance sheet on negative net worth, stressing that the sacked bank managers and shareholders that went to court challenging their removal and alleged takeover of the banks, failed to realise they were no more shareholders of those banks going by the books of account of the institutions at present.

“It is the government that has provided the bailout that has a claim to the investments. Any other shareholder can emerge after the debts of the banks have been recovered. That is what the aggrieved shareholders and former CEOs don’t seem to understand, which is why they even kicked against our debt recovery efforts that ordinarily will favour them,” he added.

According to the apex bank chief, the other set of people with claim to the banks were depositors and creditors, which he said the CBN was doing everything to protect their interests by not allowing the banks to fail.

Also recently, CBN appointed seven local and international advisers to work with the various banks’ boards and managements to repackage the banks. The advisers include Deutsche Bank, Chapel Hill Denham, Stanbic IBTC, Olaniwun Ajayi LP, Kola Awodein & Co, KPMG Professional Services and Akintola Williams Deloitte.

CBN explained that its action was aimed at ensuring the stability and soundness of the banking industry, stating that the advisers were expected to work with the boards and management of the banks by exploring all options for securing their stability and long-term future growth.

Meanwhile, as the gale of massive job cuts and salary reduction pervades the nation’s banking landscape, some of the affected workers and those owing some of the banks are leaving the country in droves.
Investigations by the Nigerian Tribune showed that some of these workers, who were laid off or opted for voluntary disengagements offered by some of the banks were relocating abroad to avoid life after banking in the country.


The principal destinations of these ex-bankers are Canada and the United Kingdom. An ex-banker, who simply gave his name as Mr. Ogunbote that recently resigned from Oceanic Bank, told our correspondent in London recently that he saw the crisis in the sector coming, hence his decision to resign and relocate abroad, adding that it would be difficult for him to adjust to a life of joblessness in the country.


He explained that having worked in one of the highest paying banks, it would be out of place to wait and be forced out, stating that the prevailing economic situation in the country did not support setting up small businesses or accessing another good job.


Ogunbote further stated that he took the decision along with some of his colleagues, who are scattered all over Europe and Canada, stressing that today, they were not regretting their action.

“I think the decision some of us took to relocate abroad is the best. Having worked in the banking sector, there is no point hanging around in the country looking for another job and the environment does not support starting any business,” he said.
A banker with a first generation bank, who pleaded anonymity, told Nigerian Tribune that this is not the best time to be called a bank worker, stating that none of them is sure of his fate on resuming work next day.
He noted that various cost cutting measures are being daily introduced in the banks, stressing that unknown to members of the public, workers are leaving the banks in droves for abroad and other sectors of the economy.

Meanwhile, some of the banks’ debtors are also fleeing the country to avoid Economic and Financial Crimes Commission (EFCC)’s arrest. Investigations by the Nigerian Tribune in Lagos discovered that the debtors, who had earlier made pledges to the anti-graft agencies to pay up their debts at later dates only used the available period to perfect their relevant travel documents to flee the country.

This made the EFCC to issue a warning last week giving the debtors a seven-day ultimatum to pay up their debts or face prosecution.


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http://www.tribune.com.ng/30112009/news/news3.html

wahala dey ooooo!!!!!

Wow this is serious. . .
But then relocating to the UK and Canada isnt really good timing unless the affected peeps wanna work in carehomes or kebab houses!

Wow this is serious. . .
But then relocating to the UK and Canada isnt really good timing unless the affected peeps wanna work in carehomes or kebab houses!

wrong, I know many working in now in Canadian Banks.

These people have skilled and Canada is benefiting.

back2back:

wrong, I know many working in now in Canadian Banks.
These people have skilled and Canada is benefiting.

Really?
Well that aint happening in the UK i am sure about. . .

Were are they going to be working in UK?

naijatoday:

Were are they going to be working in UK?

what do U want them to continue to do in naija??

You need a degree for that bra! Nigerians are highly sought after especially in Canada where they are looking for talented and educated pros. Nigerians have a long history being among the most successful in the US. I know that for a fact. I read an article once that the most US W2 visas (working visas) were granted to guess who?!!! Yep, Nigerians.

SO I say go for it!