FOUR NIGERIAN BANKS TO SIGN MOU WITH NEW INVESTORS THIS MONTH

By Niyi Tabiti

The Governor of Nigeria's apex bank, Central Bank of Nigeria (CBN),Malam Sanusi Lamido Sanusi, disclosed that four of Nigerian rescued banks are expected to sign a momoradum of Understanding (MOU) with their new investors later this month (February 2011).

gistmaster.com gathered that the banks are Intercontinental Bank,Oceanic Bank,Bank PHB and Finbank Plc. The banks had earlier being bailed out in a $4 Billion (USD) deal.Shortly after Sanusi was made the governor of CBN, CBN detected that some banks are weakly capitalised due large toxic loans, mismanagement of funds and breach of trust by Chief Executives of the banks and their close associates.In all,there was shake up in the banking sector. CEOs of the affected banks such as Cecilia Ibru, Charles Atuche,Erastus Akingbola and others were removed.They are already being prosecuted in a court of law by Nigeria's anti-graft agency, EFCC.

Other rescued banks are at the final stage of concluding deals with investors. Some banks who can't maintain national spread and resources would become regional banks.