By Vincent Nwanma

First Bank of Nigeria Plc (FIRSTBAN), the country’s third-biggest lender by market value, decided against purchasing Oceanic Bank International Plc (OCEANIC), which was bailed out by the central bank, Group Managing Director Bisi Onasanya said.

First Bank plans to concentrate on organic growth, he said in an interview with Johannesburg-based CNBC Africa television today.

“We had always been clear from the beginning that we would only do a deal that would bring value to our shareholders,” Onasanya said.

A debt crisis arising from loans to speculators on the local stock market and operators in the oil and gas industry threatened the banking industry with collapse, prompting the Central Bank of Nigeria to bail it out with 620 billion naira ($4 billion) in 2009, and fire the chief executives of eight of the lenders.

The central bank set up the Asset Management Corp. of Nigeria to buy bad debts from the lenders and recapitalize the bailed-out banks, before matching them with potential investors.

Access Bank Plc and Intercontinental Bank Plc, one of the lenders that failed the central bank’s audit, agreed to merge, they said on March 27.

Afribank Plc signed a memorandum of understanding with Vine Capital Partners Ltd., it said on April 7.

Union Bank of Nigeria Plc signed an agreement for a group led by African Capital Alliance to invest $750 million in it, the lender said on March 23.

Source: Reuters