Monday, 31 October 2011

Nationalised banks AMCON namesAjekigbe, Onwuka, Bello as heads •CBNmay peg naira at N155 per dollar

Tuesday, 01 November 2011
IN exercise of part of its responsibilities, the
Asset Management Corporation of Nigeria
(AMCON) has appointed non-executive
directors for the three banks that were
nationalised recently.
However, these appointments are subject to
final regulatory approval from the Central
Bank of Nigeria (CBN).
According to a statement from the
corporation on Monday, these nominees
emerged from an exhaustive process,
which involved wide consultation and
review, stressing that it is confident that the
prospective directors are well qualified to
add significant value to their institutions.
For Keystone Bank, the chairman is Moyo
Ajekigbe. The non-executive directors are
Prince Niyi Akenzua; Adolphus Ekpe; Charles
Chidebe Umolu; Yakubu Shehu; Mustapha
Ibrahim; Brigadier-General Aminu-Kano;
Maria Olateju Phillips; Yusufu Pam and
Jacob Olusegun Olusanya.
The Mainstreet Bank is headed by Falalu
Bello. The non-executive directors are
Yabawa Wabi; Mohammed Gulani Shuaibu;
Professor Osita Ogbu; Joshua Ogunlowo;
Abdullahi Sarki Mahmoud; Shuaib Idris;
Shehu Saad; Chris Osiomha Itede and Mr Ayo
On the other hand, the Enterprise Bank has
Emeka Onwuka as the chairman. The non-
executive directors are Sanusi Monguno;
Ebenezer Foby; Asmau Sani Maikudi; Lamis
Dikko; John Aderibigbe; Garba Imam; Ogala
Osaka; Ismaila Shuaibu and Ezekiel Gomos.
The statement noted that with these
appointments, the boards of these banks
were now fully constituted, urging them to
set a standard for good governance and
Meanwhile, the Nigeria Deposit Insurance
Corporation (NDIC) disclosed in Abuja on
Monday that it had so far recovered over
N22.158 billion debt from liquidated banks.
Senate heard from NDIC that as of August
this year, the cumulated debt recovery from
liquidated banks stood at N22.158 billion.
The Managing Director of NDIC, Umaru
Ibrahim, who appeared before the Senate
Committee on Banking, Insurance and other
Financial Institutions, added that the
depositors’ fund in the 24 operating banks
in Nigeria was N12.15 trillion.
He briefed the committee chaired by
Senator Ayoade Adeseun that the sum of
N8.33 million had been recovered to date, in
respect of closed micro finance banks
whose number is now 882.
According to him, “the total assets of the 24
deposit money banks in operation as at
September 2011 stood at about N18.40
trillion, while total deposits amounted to
N12.15 trillion.
“For the 24 operating banks, as at
September 2011, the total insured deposits
stood at N1.65 trillion, while the deposit
insurance fund was N347 billion.”
On the micro finance banks he said “their
assets as at June 2011 stood at N154.34
billion, while their total deposits amounted
to N68.60 billion. The insured deposits for
the reporting MFBS as at June 2011 stood at
N51.45 billion, indicating that about 75 per
cent of funds in the MFBs are fully covered.”
Ibrahim revealed that the cumulative
liquidation divi-dend paid to the depositors
and other claimants of the affected banks
was N6.161 billion out of N16.85 billion,
representing about 37 per cent, saying that
“so far, the corporation has paid a total sum
of N1.28 million as liquidation dividends to
shareholders of three banks in-liquidation.”
He informed that NDIC had established the
exi-stence of 560,882 claims by members
of the public against 440 illegal banks
known as wonder banks and which
amounted to N106.94 billion, saying that
“the situation had implica-tion for financial
From the figures pre-sented before the
committee, total assets of existing banks
were put at N18.40 trillion; total depositors,
44.218 million and total number of insured
depositors fully covered was put at
NDIC put the figure of non-performing loans
at N688 trillion; total insider credits,
N559.58 billion; non-performing, N21.19
billion and gave the figure of female
borrowers and amount owed at 130,885
and N22.62 billion.
The total number of male borrowers and
the amount owed was put at 118,373 and
N25.53 billion respectively, shareholders’
funds put at N38.05 billion, while the total
loans figure was put at N48.15 billion.
In another development, as part of
measures to check volatility in the foreign
exchange market, the Central Bank of
Nigeria (CBN) Governor has concluded plans
to review its target band for the naira in the
next few days.
In an interview with a foreign news media
organisation in Abuja, on Monday, CBN
Governor, Lamido Sanusi, said the review
would depend on where the exchange rate
settled, as it might be moved to midpoint of
N155/N156 to the dollar, compared to its
current N150.
According to Sanusi, the apex bank’s policy
is currently to maintain the naira within
around three per cent either side of the
N150 level.

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