MAY 18, 2015
Shareholders seek return of nationalized banks By PETER EGWUATU
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head of the sale of the last nationalised bank (Keystone Bank Limited ) by Assets Management Corporation of Nigeria (AMCON), fresh facts seem to have emerged as shareholders have called on the incoming government led by President-elect, General Mohammadu Buhari to revisit the issue of the three nationalized banks, stating that the exercise was not transparent and characterized by corruption. Meanwhile, AMCON’s spokesperson, Mr. Kayode Lambo confided in Financial Vanguard that the sale of Keystone Bank will commence this year, 2015 contrary to earlier 2014 speculated. He said: "The corporation will start the process of selling the bank with the appointment of financial advisers and will be fast-tracked. So it is likely that the sale may be completed between October and November 2015.” Recall that AMCON has so far sold Mainstreet Bank and Enterprise Bank to Skye Bank and Heritage Bank respectively. In an exclusive chat with Financial Vanguard, the Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie, said, “We thank God that Keystone Bank, whose case is still in court over nationalization has not been sold yet. We have more facts on this issue and we want proper investigation on it by the new government. Also, investigation had shown that one of the reasons why retail investors had shown apathy to the Nigerian stock market since the meltdown in 2009 was because of the issue of nationalized banks. The retail investors suffered the loss of their investment in these banks. If the new government wants increased participation of local investors in the market, then it should investigate the C M Y K
zDemand probe into events leading to nationalization zAllege due process was not followed zKeystone Bank sale to be concluded by October/Nov issue of the nationalized banks." Continuing, he said, “If the issue is investigated properly, the government will discover discrepancies in the handling of the issue and it will be proper if the banks are returned to their former shareholders or in the worst situation, compensation be paid to the shareholders. This step, if carried out would enhance confidence and engender the participation of local
investors in the capital market. So we are using this opportunity to call on the incoming government to revisit the nationalisation of the three banks whose licences were revoked by the Central Bank of Nigeria, CBN and acquired by Nigeria Deposit Insurance Corporation, NDIC and then finally taken over by AMCON . He contended that due process was not followed as the exercise was
characterized by corruption, adding, “The nationalization of these banks amounted to unlawful and compulsory acquisition of our investment and is therefore unconstitutional, arbitrary, null and void. We have fresh facts at our disposal and we would like the new government to investigate this issue. Thank God, Keystone Bank has not yet been sold.” Continues on page 22
VISIT: Managing Director/Chief Executive Officer of Airtel Nigeria, Mr Segun Ogunsanya presenting a gift to the Governor of Osun State, Ogbeni Rauf Aregbesola (right), during a courtesy visit to the State of Osun Government House recently.