Foreign Interest Expressed in Nigerian Banks, Bank Chief Says
By WILL CONNORS
ABUJA, Nigeria – A number of foreign banks, including four South African institutions and a British firm, have expressed interest in buying into Nigeria’s troubled banks, said central bank chief Lamido Sanusi.
In August, Mr. Sanusi orchestrated a $2.6 billion bailout of five Nigerian banks, which the central bank said were teetering because of mismanagement and underperforming loans. Four additional banks were bailed out this month, with an additional cash injection of $1.3 billion.
Mr. Sanusi has suggested he’d try to find domestic and foreign investors for the troubled banks. In an interview Thursday, Mr. Sanusi said he expected a number of healthier Nigerian banks to express interest in stakes, probably with foreign partners.
He said, however, that the central bank wasn’t inclined to have any one bank attain more than a 20% market share in Nigeria’s domestic banking sector. He said the central bank would likely step in to prevent a deal that would create a combined bank with a greater market share.
“I would probably stop it,” he said.