Nigerian Central Bank 'looks to recapitalise lenders'

Dec 18, 2009

The Central Bank of Nigeria is in discussions with a number of both domestic and foreign banks about recapitalising lenders, it has been revealed.

The Central Bank of Nigeria is in discussions with a number of both domestic and foreign banks about recapitalising lenders, it has been revealed.

Spokesperson Mohammed Abudullahi reveals that since rescuing several lenders following the failure of an audit, the regulator is now encouraging financial services firms to do business with them once more, Bloomberg reports.

In comments made by telephone, Mr Abudullahi notes that the bank is currently in negotiations with "three or four foreign banks and three or four Nigerian banks".The Central Bank of Nigeria is in discussions with a number of both domestic and foreign banks about recapitalising lenders, it has been revealed.

Spokesperson Mohammed Abudullahi reveals that since rescuing several lenders following the failure of an audit, the regulator is now encouraging financial services firms to do business with them once more, Bloomberg reports.

In comments made by telephone, Mr Abudullahi notes that the bank is currently in negotiations with "three or four foreign banks and three or four Nigerian banks".

However, he states that it would be "premature" to name the banks involved.

The news resource points out that the bank had saved the lenders through a cash injection of around 620 billion naira.

Announcing a number of reforms earlier this year, the bank revealed the appointments of advisers for several Nigerian institutions - including the Equatorial Trust Bank, Finbank and Oceanic International Bank - aimed at helping them secure their future and install "best practice and good corporate governance".

However, he states that it would be "premature" to name the banks involved.

The news resource points out that the bank had saved the lenders through a cash injection of around 620 billion naira.

Announcing a number of reforms earlier this year, the bank revealed the appointments of advisers for several Nigerian institutions - including the Equatorial Trust Bank, Finbank and Oceanic International Bank - aimed at helping them secure their future and install "best practice and good corporate governance".