By Gbenga Agbana

Tuesday, 7 Dec 2010

If given the opportunity, shareholders of the banks recently rescued by the Central Bank of Nigeria are ready to recapitalise the banks.

The President of the Independent Shareholders Association of Nigeria, Chief Sunny Nwosu, said this at a press briefing organised by the group in Lagos on Monday.

According to him, the existing shareholders of the banks are not happy with any arrangement that will make the banks to be sold outright to new investors without carrying them along or protecting their interests.

He, however, said the association was not against the reforms of the regulatory authorities in the country.

He said, ”The central bank cannot sell the banks. The shareholders are willing more than before to recapitalise the banks. Shareholders should be given about 18 months or two years to recapitalise the banks. The CBN cannot sell the banks because they are not the owners. There is no law that gives them power to sell the banks.”

On the reforms being carried out currently, Nwosu said, “It is imperative now to restate that while ISAN is not against reforms, such economic reforms must be done within the ambit of the law and constitution of the Federal Republic of Nigeria. Our continued rejection of the banking sector and capital market reforms is based on the fact that it is sentimentally-driven.”

Source: Punch