March 28, 2011
The Central Bank of Nigeria has noted with concern various speculations and unsavoury comments on the proposed mergers and acquisitions of rescued banks and wish to categorically state that no approval for any Memorandum of Understanding (MOU) has been granted by the CBN so far.
Whereas the trend of signing the MOUs is welcome and shows the intrinsic value that investors see in Nigerian banks and the process signals that the solution to the banking crisis is in the horizon; MOU can only lead to actual transaction if and when CBN issues no objection and other regulatory approvals. The CBN and other regulators will ensure that all relevant factors, including professional advice from the financial advisers are adequately considered before any approval is granted.
The process which is being driven by the parties involved and not he CBN will have to be approved by the Board and Shareholders of the banks concerned. Therefore, all speculations and unsavoury comments on the process are premature and unnecessary.
For the avoidance of doubt, the CBN and other relevant regulators will be guided by appropriate considerations including due diligence on investors and the advice provided by Financial Advisers to the parties before approving MOUs and subsequent transactions.
M. M. ABDULLAHI
HEAD, CORPORATE COMMUNICATIONS
28th March, 2011