Central Bank of Nigeria

Central Bank of Nigeria building

Speaking at a road show in Lagos at the weekend, to intimate the public on the activities of the corporation so far, AMCON chief executive, Mustapha Chike-Obi, said the option of sale along others were being considered in order to give opportunity to the public to invest in the institutions.

He said: “One of the options available to AMCON is to take these institutions public, so that the Nigerian public can have a chance to invest in them. So, we want to look at all the options before we start thinking of who the ultimate investors would be. It is only on the basis of that advice and examination that we come to the best way of selling these banks”.

“We are considering the option of taking the nationalised banks on the sales block to the nation’s capital market,” he said.

He however said that AMCON had decided to weigh all the options available, so as to engender confidence in the process.

His word: “We don’t want anybody to think that these banks were taken over and handed over to special interests. It must be a very transparent process. AMCON must get the best returns on its investments because we are not a charity organisation.

“It must be done in the interest of the financial system. And that is where the Central Bank of Nigeria (CBN) comes in. We must make sure that whoever takes over these banks ultimately is fit and proper to run a bank, we must know where their money is coming from, and we must know that the management is going to be sound.”

It’s expected that in the next six weeks, the identities of 11 out of the 44 advisers that expressed interests in the banks would be known, giving fillip to the preparation for the sale of the banks.

According to him, “the process is that we asked for expressions of interest and we received 44 expressions of interest to act as our advisers. We have since shortlisted the list to 11 and we have sent out a notice to the people who were shortlisted and to those who were not shortlisted.

“The shortlisted parties will receive detailed Request for Proposal (RFP). In that proposal, we will specify exactly what we want them to do and we will ask them to give us their fees. It is based on the RFP results that we can pick the advisers. So, we are probably four to six weeks away from picking the advisers,” he said.

The AMCON boss said it was expecting N120 billion sinking funds from the said banks and the CBN, as soon as the 2011 financials of banks were approved by the CBN. The amount is the agreement between the CBN and the said banks, to establish a sinking fund through 0.03 percent of assets and N50 billion annually from the banks and CBN respectively.

“On the expression of interest on these banks, I think over 20 different bodies – banks and other investors have expressed interest. We have not gotten to the stage yet, when we can consider those expressions of interest. The process to get there requires AMCON appointing an adviser that will evaluate and determine the value of the banks, evaluate all the options available to AMCON.”

Meanwhile a Joint Examiners from the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation, (NDIC) will today commence the maiden routine examination of the books of the three nationalised banks to determine their level of liquidity and corporate governance, among others.

This is expected to give first hand information to the regulators on the state of affairs of the banks.

_________

Source: WorldStage Newsonline

View the original article here

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.