The lifespan of the new management of the three banks acquired by the Nigerian Federal Government at the weekend has been fixed by the Asset Management Corporation of Nigeria (AMCON), according to local media reports Tuesday.
Without any future tinkering with the new arrangement, the new boards of directors appointed for the banks on Sunday by the government will take a bow after three years for the new investors to take over ownership.
The banks are Keystone Bank Limited (formerly Bank PHB), Mainstreet Bank Limited (Afribank) and Enterprise Bank Limited (Spring Bank). They were bought over by AMCON last weekend.
AMCON’s Managing Director and Chief Executive Officer (MD/CEO), Mustapha Chike-Obi, unveiled the plan Monday, saying that AMCON had no intention to keep the banks forever as it would manage them for a maximum of three years or even less before selling them to interested investors.
Chike-Obi further disclosed that already, new investors were making overtures to take over the three banks.
He said with the 679 billion naira (about US$ 4.5 billion) which AMCON injected into the three banks Monday, liquidity-wise, the outfits were now among the most capitalised banks in the country, hence the interest of the investors.
He said the focus of AMCON would be premised on protecting the welfare of the depositors, members of staff, and ensuring the stability of the country’s financial system.
AMCON had on Sunday appointed, among others, former MD/CEO of First Bank of Nigeria (FBN) Plc, Mr. Jacob Moyo Ajekigbe as the chairman of Keystone Bank Limited and Mr. Oti Ikomi as the MD/CEO.
For Mainstreet Bank Limited, Mr. Falalu Bello, a former MD/CEO of Unity Bank Plc, is chairman while Mrs. Faith Tuedor-Matthews is the MD/CEO.
Mr. Emeka Onwuka, who served as MD/CEO of Diamond Bank Plc, is the chairman of Enterprise Bank Limited.
Mr. Ahmed Kuru, a former Executive Director of Bank PHB Plc, is the MD/CEO.
In another development, the Central Bank of Nigeria (CBN) has appointed the Group Managing Directors of the defunct Afribank Nigeria Plc (Nebolisa Arah); BankPHB Plc (Cyril Chukwuma) and Spring Bank Plc (Sola Ayodele) as Transition Consultants for the newly-created banks – Mainstreet, Keystone and Enterprise.
The appointments, according to the reports, were announced to the trio in Abuja at a meeting presided over by CBN Governor Sanusi Lamido; Chike-Obi and CBN deputy governors.
At the three-hour meeting, the GMDs of the defunct banks and their executives, according to sources, were told to assist the in-coming GMDs.
Their duties and responsibilities, it was learnt, will be in accordance with the laws applicable to the position of the MD of a duly licensed bank, but acting as Transition Consultant to each of the banks.
The trio, who were said to have been commended by both Sanusi and Chike-Obi, are expected to act in this capacity till 4 September.
These developments came after AMCON made good its promise to issue 679 billion naira worth of bonds to the newly-formed banks via bonds that have a tenor of 10 years.
The treasurer of Mainstreet Bank is to receive 285 billion naira worth of bonds, which will bring the institution to over 15 per cent capital adequacy and a minimum of 25 billion naira capital base. Keystone Bank will get 283 billion naira worth of bonds while Enterprise Bank will be given 111 billion naira.
They are expected to tender their bonds to the CBN, which will rediscount (buy at today’s value) them and credit their account in the first instance, with 25 per cent of the total value
