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FG appoints MDs for nationalised banks

By Yinka Kolawole, Michael Eboh & Amaka Abayomi
LAGOS—Assets Management Corporation of Nigeria (AMCON) has appointed new managements and boards for Mainstreet Bank Ltd, Keystone Bank Ltd and Enterprise Bank Ltd, the three bridge banks set up by the Nigeria Deposit Insurance Corporation (NDIC) to take over the assets and liabilities of Afribank Plc, Bank PHB Plc and Spring Bank Plc.

A statement by AMCON stated that by the appointments which have been approved by CBN, Mr. Jacobs Moyo Ajekigbe, former MD of First Bank of Nigeria, becomes the Chairman of Keystone Bank, while Mr. Oti Ikomi was appointed Managing Director. Other officials of the bank are Shehu Abubarkar, Demola Adewale, Mrs. Yvonne Isichei, Dr. Shehu Mohammed, and Mr. Raphael Ereyi , all Executive Directors.

Mainstreet Bank Limited

For Mainstreet Bank Limited, Mr. Falalu Bello, former MD of Unity Bank, was appointed Chairman, while Mrs. Faith Tuedor-Matthews was appointed Managing Director. The Executive Directors are Mr. Kola Ayeye, Abubakar Sadiq Bello, Bolaji Shenjobi, Anogwi Anyanwu, and Roger Woodbridge.

Enterprise Bank Limited

Enterprise Bank Limited has Mr. Emeka Onwuka, former MD of Diamond Bank as Chairman, Ahmed Kuru as Managing Director, while Mrs. Louisa Olalokun, Mrs. Nneka Onyeali-Ikpe, Aminu Ismail, Niyi Adebayo, and Audu Kazir are Executive Directors.

Meanwhile, sources close to AMCON informed Vanguard that the staff of the three banks have been given two options – either to sign a bond in order to continue with the banks or get a severance package.

Faith Tudor Matthews, MD Mainstreet Bank and Emeka Onwuka, Chairman Enterprise Bank

Securities and Exchange Commission

In a related development, the Securities and Exchange Commission (SEC) has directed the Nigerian Stock Exchange (NSE) to suspend trading on the shares of the three banks nationalized by the CBN and the Nigeria Deposit Insurance Corporation (NDIC) — Spring Bank Plc, Bank PHB Plc and Afribank Nigeria Plc.

The commission further directed the NSE to place on technical suspension, the shares of Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc and Union Bank Nigeria Plc, following their moves to meet up with the capitalization requirements of the CBN through the signing of Transaction Implementation Agreements (TIAs) with core investors. Technical suspension means that trading on the shares can continue without any change in price.

This, according to a statement by the spokesperson for SEC, Mr Lanre Oloyi, is in support of the actions of the Central Bank of Nigeria, CBN, and the Nigerian Deposit Insurance Corporation (NDIC) and also to protect investors, by forestalling a massive dumping of the shares of the affected banks.

According to Oloyi, the actions of the NDIC, CBN and the Asset Management Company of Nigeria (AMCON) are significant steps towards the resolution of the banking crisis, adding that the Commission believes these actions will accelerate the recovery of the Nigerian capital market.

“As a consequence of the above actions and to maintain market integrity, SEC has approved the placement of the shares of Afribank Plc, Bank PHB Plc and Spring Bank Plc on full suspension. Full suspension means that there will be no trading on the shares of the said companies.

“Specifically, NDIC in the exercise of its powers under the NDIC Act on 5th August 2011, established Enterprise Bank Limited, Keystone Bank Limited and Mainstreet Bank Limited as Bridge Banks to take over the deposit liabilities and assets of Spring Bank Plc, Bank PHB Plc and Afribank Bank Plc, whose banking licenses have been revoked by CBN.

“Subsequently on 6th August, 2011, AMCON in fulfillment of its role as a resolution vehicle and pursuant to the provisions of the AMCON Act of 2010 signed an agreement with each of the three Bridge Banks. The agreements involve the acquisition and transfer of ownership with a promise to provide sufficient capital to restore the banks to the level of capital adequacy stipulated for their operations.


Speaking on the CBN and NDIC action, Mr. Opeyemi Agbaje, Managing Director, Resources and Trust Company Plc said, “It is difficult to find justification for the CBN/NDIC action nationalising the three banks in question well ahead of the deadline set by the CBN itself.

“The CBN is likely to argue that since no offers were on the table, it acted now rather than later to prevent a worsening of the institution’s situation as the deadline approached. “This would then raise the question of why CBN itself made a public show of the deadline rather than communicate privately with the banks.

“I expect legal questions to arise regarding the propriety of CBN/NDIC action. I do not support nationalisation owing to the negative effects on the sector as seen from the 70s and early 90s and hope this nationalisations are a short-term “bridge” towards selling to private core investors.”

Shareholders Association of Nigeria

Shareholders under the aegis of Independent Shareholders Association of Nigeria (ISAN) have denounced the revocation of the licenses of the banks

After an emergency meeting, ISAN in a statement signed by its National Coordinator, Mr. Sunny Nwosu, called on President Goodluck Jonathan to declare an emergency in the nation’s banking industry to avert global concerns on Nigeria’s economic and financial status.

“The revocation of the operating licenses of three commercial banks, namely Afribank Plc, BankPHB Plc and Spring Bank Plc remains a calculated subversion of the nation’s economy and the great

people of Nigeria. The CBN’s Resolution of Recapitalization through Bridge Banks remains an attestation of failure or inept leadership by the current management of the apex bank toward finding a permanent answer to the nation’s induced banking problems.”

The association further noted that the nation’s banking crisis was self-induced adding that the CBN’s revocation approach would further impoverish the citizens and Nigerians ability to create wealth through long term savings window of the capital market.

“ISAN is now vindicated in its posture that the Assets Management Company of Nigeria (AMCON) was floated to re-nationalise commercial and quoted banks. By this action, the CBN has actualize the subsisting threat to revoke the operating licenses of banks whose shareholders challenge in law courts the apex bank recapitalization method. ISAN rejects the revocation of the banks operating licenses and would further meet to discuss the next line of action,” they stated.

In his reaction, Mr. Seye Adetunmbi, Chief Responsibility Officer, Value Investing Limited, said: “One thing that can not be disputed is that those banks CBN took over had issues. If one of them, Intercontinental Bank, has officially advanced in the merger with Access Bank; it underscores the reality of the states of those abused banks.

“Apparently, these three other banks could not breast the tape in the struggle and Federal Government intervened accordingly. Thus, I will give it to the decision makers on their intervention through the bridge bank initiative. They have the facts and must have weighed all options before resulting to this action.”

The microfinance sector is not left out as there are fears of ripple effect on the sector.

According to the President of the National Association of Microfinance Banks (NAMB), Mr. Mathias Omeh, though the microfinance sector is not affected, but efforts are being made to ensure that such fate doesn’t befall the sector. “The consolidation is still on-going and the regulatory authorities have assured that no depositor would loose a kobo. But since the microfinance sector is not covered by AMCON, the national, zonal and state leadership of NAMB is doing all within our means to ensure that we don’t get to this level.”

Chairman of Lagos State chapter of NAMB, Mr. Olufemi Babajide, said that though the microfinance sector is not likely to be affected, but foresees a run on the remaining banks as their customers would want to withdraw their monies. “The big banks are being pampered at the expense of microfinance banks. Though the microfinance sector is safe for now, but there will be a run on the remaining banks that are still considering mergers and acquisitions.”

Group Managing Director/Chief Executive of Intercontinental Bank Plc, Mr Mahmoud Lai Alabi, has confirmed that the bank will certainly conclude its recapitalisation program by the end of September 2011. “Following the signing of the Transaction Implementation Agreement with Access Bank, the necessary documents for the Scheme Arrangement have been filed with SEC. This will be followed by regulatory and shareholders’ approvals.” He predicts a bright future for the bank.



Jacobs Ajekigbe, former Managing Director/Chief Executive Officer, First Bank of Nigeria Plc between 2002 and 2009, graduated from the University of Ibadan in 1979 and also obtained a Masters, Business Accounting from the University of Lagos.

His career in the banking sector began in 1977, when he was appointed Agricultural Credit Officer, First Bank. He later became Senior Manager, First Bank in 1986; Principal Manager, First Bank, 1993 and Assistant General Manager, First Bank, London, United Kingdom, 1996. In the year 2000, he was appointed Deputy General Manager, Corporate Banking, First Bank, and then promoted to Executive Director, Retail and Consumer Banking, First Bank.

Oti Ikomi was a former Executive Director, Corporate Banking Group, Oceanic Bank International Plc.

He once served as Director and Head of Sales, Global Transactional Banking, Standard Bank, Johannesburg South Africa. Ikomi’s experience in the banking sector spanned through numerous African countries, attending executive management leadership course covering operations, marketing, finance and strategy at the new Morningside Leadership Center.


Falalu Bello was the former Managing Director, Unity Bank Plc and has served as Managing Director of three other banks, namely: Habib Bank, Intercity Bank, Agriculture, Cooperative and Rural Development Bank (ACRDB).

Born February 2, 1954 in Rigachikun, Igabi Local Government Area of Kaduna State, Bello obtained a Bachelor of Law Degree at the Ahmadu Bello University, Zaria, in 1978, and was called to the bar in 1979. He started his working career as a Magistrate Grade II with the Kaduna State Government in 1980 and later became Chairman, MBS Merchants Limited in 1997 and Chairman of Kapital Insurance Limited, now Unity Kapital Assurance Plc, where Unity bank is the majority shareholder.

He was also director of British American Tobacco, JAIZ International Bank Plc and Kakawa Discount House Limited. In 1995, he was appointed as a Draft Constitution Debate Committee, member of the Presidential Committee on Financing Agriculture and Small Scale Industries in 1999, member of the Ahmadu Bello University Governing Council (2000 to 2002) and member of the Bureau of Public Enterprises, BPE, Steering Committee on Agriculture and Water Resources Sector in 2000.

Mrs. Faith Tuedor-Matthews, the newly appointed MD of Mainstreet Bank Limited, was Head of Regional Bank – Abuja of the United Bank for Africa, UBA, and was promoted Deputy Managing Director, UBA (North), Deputy Managing Director of Abuja and Executive Director/Member of Board Risk Committee, UBA.

Tuedor-Matthews served as UBA’s Deputy Managing Director of Abuja from April 17, 2011 till July 2011. She was formerly Deputy Managing Director of Nigeria-North of UBA. She served as Head of Regional Bank – Abuja of UBA.

Before joining UBA, she has worked for a number of financial institutions, before joining Standard Trust Bank as an Executive Director in 2003. She has been Executive Director of UBA since August 1, 2005. She holds MBA from University of Aston, UK; degree from the Southampton Institute and a Post-Graduate Diploma in Marketing from Staffordshire University, UK. She is an Alumnus of the Harvard Business School Senior Executive Programme. Tuedor-Matthews is Graduate member of the Chartered Institute of Marketing, London and a member of the Chartered Institute of Bankers.


Mr. Emeka Onwuka, Chairman of Enterprise Bank Limited, became MD of Diamond Bank Plc in May 2005 and also served as Chief Executive Officer for Diamond Securities Limited. Onwuka served as the Head of Commercial Banking business of Diamond Bank Plc. He joined Diamond Bank in 1992 and worked in various divisions, including corporate and investment banking, branch banking, treasury and commercial banking, among others.

Prior to joining Diamond, he worked with Arthur Andersen LLP in the areas of accounting and management consulting for the finance, oil and gas industries. He served as Chairman of the Board of Directors at Diamond Securities Limited. He also served as Chairman of Diamond Capital Limited (Alternative Name is Diamond Capital and Financial Markets Limited). He served as an Executive Director of Diamond Bank Plc.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.