Tony Elumelu, Outgoing MD/CEO, United Bank for Africa (UBA)
Lamido Sanusi, who took over as CBN Governor in June, has already rocked the financial sector in Africa’s second largest economy, dismissing the executives of eight banks during a debt crisis brought on by reckless lending. The Central Bank of Nigeria (CBN) bailed out stricken banks to the tune of $4 billion.
In the latest move, the country’s 24 banks have been instructed to place a 10-year limit on the tenures of chief executives. “All CEOs who would have served for 10 years by July 31, 2010 shall cease to function in that capacity and shall hand over to their successors,” the CBN said.
Jim Ovia, Outgoing MD/CEO, Zenith Bank
Three chief executives would be affected, including the heavyweights who run two of the continent’s largest banks, people familiar with the situation said.
One is Tony Elumelu, who emerged as chief executive at United Bank for Africa (UBA) following a power struggle that followed its 2005 merger with Standard Trust Bank, which he had run since 1997. UBA’s board has just appointed Phillips Oduoza as the MD/CEO designate to replace Tony Elumelu.
UBA says it has assets of more than $19 billion, seven million customers in 14 African countries, and offices in New York, Paris and London. In 2008, US regulators fined UBA $15 million for failing to implement an adequate anti-money laundering program. The bank has since appointed new risk managers. Read the rest of this entry »
Old Mutual Plc said its South African private equity unit is considering increasing its 1.7% stake in Oceanic Bank Plc, one of 10 Nigerian banks bailed out by the Central Bank of Nigeria (CBN) last year.
Oceanic’s CEO, Cecilia Ibru, was among eight CEOs fired by the CBN in August last year after it had to inject N620 billion ($4.1 billion) of capital into 10 of its 24 banks to cover bad debts. Nigeria is now wooing buyers to take stakes in the 10 troubled lenders.
Group Managing Director/CEO UBA Plc, Mr. Tony Elumelu has applauded the establishment of credit bureaus in Nigeria describing it as a historic milestone in the financial services sector in the country. ChairmanKing.com recently reported that 
First Bank of Nigeria Plc, Nigeria’s largest bank by market value, said it will buy banks bailed out by the Central Bank of Nigeria (CBN) as long as they fit the company’s strategy.
FirstRand Ltd. and Standard Bank Group Ltd., South Africa’s two biggest banking groups, have both registered with the Central Bank of Nigeria (CBN) to investigate buying distressed lenders in the West African country.
The timetable for buying any of the 10 Nigerian institutions that failed an audit last year will be determined by the CBN, FirstRand CEO Sizwe Nxasana said today. The Johannesburg-based bank said it may prefer to buy one of Nigeria’s “healthier” banks.
FirstRand first mooted its African expansion plans last June while 
There are strong indications that the on-going wind of massive job cuts in banks will blow unabated before the end of the year.
Standard Bank already operates in Nigeria through its controlling stake in Stanbic IBTC.
For Nigerian banks to avoid another case of bail-out by the government, there is a need to properly reassess the risks they take, review their risk management systems, and create a value system that is embodied in capacity and character.
