Mismanagement and recklessness of five banks in Nigeria

The Central Bank of Nigeria (CBN) released the names of debtors who are majorly shareholders/directors of banks. The total of the debt was N747billion- the executives of the affected five banks were sacked before these names were released.

The lists of the banks and loans are as follows, Oceanic bank Plc, N27.204billion or 37%; Intercontinental bank Plc; N210.903 billion or 28%; Afribank Plc; N141.85billion or 19% with the revelation also comes with the names of these debtors. The Intercontinental biggest debtors are Ascot Offshore Nigeria limited through Henry Imashka N44.67billion and Rockson Engineering limited through Engineer J.I Arumeni-Ikhide and his wife N39.989billion.

Oceanic bank has Notore chemical industries owing N32.392Billion and Rahamanyha Global resources through Abdul Rahama Musa Bashir owing N28.598 billion. The major debtors to Union bank are Transnational Corp Plc of the Nigeria Stock Exchange, where Dr, Ndidi Okereke Onyiuke is a Director/shareholder owing N30.863billion on behalf of the company and MTS first wireless limited through Chief Lulu Briggs owing N9.849billion.

Afribanks debtors are Kolvey company limited owing N16.5billion and Rehoboth assets through the Ajaegbu families owing 28.598billion. Finbank major debtors are Aquitane oil and gas owing N3.656 billion and Falcon securities through Peter Ololo owing N3.496billion.Presently Nigerian depositors are afraid but the CBN Governor says there is no cause for alarm since CBN had obtained approval of the President to inject N400Billion into the affected banks to shore up their tier 2 capital to minimum acceptable levels.

The CBN Governor said that the injected funds by the apex bank was just temporary and does not translate to the government taking a stake in the five banks as the interim management of these banks will be given a period to recapitalize the affected institutions following which the N400billion will be paid back to the CBN.

He went further to say that CBN intends to make it clear that the money being injected as well as the decision to guarantee interbank placement should allay depositors concerns. The interim management and board for the affected banks will run the institutions until they are taken over by new management teams and owners.

The sacked banks executives are Erastus Akingbola, (Intercontinental bank); Okey Nwosu (Finbank); Sebastian Adigwe (Afribank); Mrs. Cecilia Ibru (Oceanic Bank) and Bartholomew Ebong (Union Bank).