By Okechukwu Nnodim

Two shareholder associations have expressed support for the nationalisation of three banks by the Federal Government.

According to them, the move will protect the nation’s financial system from imminent crash.

The CBN had on Friday, August 5, revoked the licences of Afribank,Bank PHB and Spring Bank, and transferred their assets and liabilities to Mainstreet Bank, Keystone Bank, and Enterprise Bank respectively, which were the constituted “bridge banks” put in place by AMCON.

The National President, Nigerian Constance Shareholders’ Association,Mr. Shehu Mikail, told our correspondent that his group was pleased with the actions taken by the CBN, NDIC and Asset Management Corporation of Nigeria.

“It was the best time to take the decision so as to safeguard the Nigerian economy from total collapse, because one of the bases for the progress of an economy is when there is a stable financial system and policy,” he said.

Mikail noted that the financial agencies considered not just the investors of the DMBs, but also the depositors whose funds were in the rescued banks, adding that court actions taken against the apex bank were sponsored by aggrieved people who lacked genuine motives.

He said, “I believe that all the steps taken so far were in the interest of the common man in Nigeria; if those steps were not taken, most of the shareholders would have started selling their shares before now and the depositors money would have been at zero per cent, which would have led to a mess in the capital market.

“A few persons who are not happy with the decision are using some of the minority shareholders to delay the recapitalisation process by going to court, but this will rather drag back than help the system.”

The President, Renaissance Shareholders Association of Nigeria, Mr. Olufemi Timothy, said the apex bank would have liquidated the DMBs that were yet to recapitalise regardless of whatever case was pending in court.

According to him, further argument with the agencies may make shareholders lose more of their investments with other rescued banks struggling to beat the recapitalisation deadline.

He said, “We have lost all our shareholdings in these nationalised banks and this is so painful, but we should know that CBN is correct in whatever they are doing now.

“We should not allow ourselves to be used to disrupt the process, rather shareholders should cooperate with the CBN because the law is in their favour no matter what. It will not be wise to lose what we have in the remaining banks, so in our interest all court cases should stop.”

Source: Punch