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Consolidation: CBN sacks boards of 11 insolvent banks

Posted by By Emma Ujah on 2006/01/15 | Views: 2543 |

Consolidation: CBN sacks boards of 11 insolvent banks


The Central Bank of Nigeria (CBN), has bowed to intense pressure not to liquidate the weak banks that failed to cross the N25 billion recapitalisation hurdle, as it has sacked their boards of directors, rather than liquidate them, outright, as planned.

LAGOS — The Central Bank of Nigeria (CBN), has bowed to intense pressure not to liquidate the weak banks that failed to cross the N25 billion recapitalisation hurdle, as it has sacked their boards of directors, rather than liquidate them, outright, as planned.The affected banks are: African Express Bank, Eagle Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Lead Bank, Liberty Bank, Metropolitan Bank, Societe Generale Bank, Trade Bank, and Triumph Bank.

This confirms Vanguard’s exclusive report on Thursday January 5, that CBN Governor, Prof. Charles Soludo and his top management were under severe pressure from political big-wigs, working through some powerful individuals in the Presidency to stop the CBN from liquidating the affected banks.

In a press statement issued by the CBN spokesman, Mr. Festus Odoko, in Abuja, yesterday, the apex bank announced the appointment of Interim Management for the ailing banks which could not attract mergers and or acquisitions in the recapitalisation exercise which ended on December 31, 2005.

The statement said that the affected banks, "in the opinion of the CBN are in grave situation having become insolvent with negative shareholders’ funds and having failed to comply with the obligations imposed upon them by the Banks and Other Financial Institutions Act 1991 and the Central Bank of Nigeria Act 1991, as amended."

Consequently the CBN has constituted interim management committee for the afore-listed banks. Those appointed to serve on the committee are:
African Express Bank: Ismaila Shuaibu and Mrs. Ayotunde Asobo; Eagle Bank: Omowa Gbadebo, Augustine Charles and Mbah Offiong; Fortune Bank: Innocent Ilozumba and Dr. Joe Emeson; Gulf Bank: Omoruyi Iyamu and Oluwole Afelumo; Hallmark Bank: Cyril Chukwuma and Alhaji Saidu Ali Danyabo; Lead Bank: Gbolahan O. Folayan and Ozoji Chidinma Janet; Liberty Bank: O. O. Sodiya and Ezegbu Basil O.; Metropolitan Bank: Dolapo Atekoja and Bature Mohammed Abubakar; Societe Generale: Dr. S. A. Ndanusa and B. A. Sanda; Trade Bank: Saidu Baba Ahmed and H. I. Muhammed; Triumph Bank; Ms. Benedickter C. Molokwu and Ibrahim Aminu.

According to the CBN, "the appointment of the interim committee is pursuant to the powers conferred on the CBN by the Banks and Other Financial Institutions Act 1991 and the CBN Act 1991 as amended.

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