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Shareholders
Association of Nigeria, Onitsha zone, has assured customers of the
eight rescued banks in the country of adequate protection of their
interest in the plans by the Central Bank of Nigeria to sell the banks.

Goodluck Akporie,
chairman of the zone, advised the customers to go about their normal
banking businesses and transactions with their various banks as plans
are underway to inject more funds into the bank in order to make them
more viable. He said the CBN has no power to sell the ailing banks, but
noted that it has power to see to the welfare of the banks in order for
them not to go under. “I want to appeal to customers of the ailing
banks that are afraid and going for panic withdrawal. They should not
be afraid as no bank would be sold. We are only going to inject more
funds. No sales at all. They shouldn’t be afraid. They should do their
normal banking businesses and transactions with their various banks,”
he said.

Recapitalization it is

He said at the last
meeting the central bank held with the shareholders, the regulator said
it was not going to sell the banks. “Our position has always remained
the same,” he said. “The CBN governor, Sanusi Lamido said it clearly
that the apex bank is not selling any bank. That has been our argument
and they don’t have power to sell and they cannot sell but they have
the power to see to the welfare and ensure that banks do not go under.
So the position right now is that the bank would go to the market and
go for recapitalization, and the recapitalization is going to be by
shareholders, Nigeria public, some core investors and the Asset
Management Company of Nigeria (AMCON) because they are likely to buy or
shore up all the debts that the affected banks are owing. I thanked the
CBN governor for that step he took because he could as well nationalize
the banks,” he said.

Mr. Akporie also disclosed that the CBN is not presiding over the
selection of those that are bidding for the acquisition of the ailing
banks, adding that the bidders apply directly to the banks and not
through the CBN just as he said that the board of the various banks
would in conjunction with shareholders participate in the final bidding
process of the banks. He however called on some of the shareholders
that have gone to court to challenge the management of CBN over the
removal of the alleged ailing banks chief executives to withdraw their
suits from the court, adding that the CBN should be commended for being
courageous enough to remove the former executives of the banks who were
indicted for financial misappropriation that led to the present
challenges currently facing the banks.