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.
“Whilst we’re implementing the organic growth initiatives in house, we also have our eyes open for opportunities,” Chief Executive Officer Stephen Olabisi Onasanya said in an interview published today by Lagos-based Punch newspaper. “We will, however, only touch candidates that have value to add to our system and that fit into our strategy.”
He declined to identify possible targets and said any acquisitions won’t affect talks with Ecobank Transnational Inc. of Togo over a merger. The companies have been in talks since 2005 on combining their businesses.
First Bank was one of 14 lenders that passed an audit by the Central Bank of Nigeria (CBN) last year and joins South African banks, Standard Bank Group Ltd. and FirstRand Ltd., which said on Jan. 14 that they’ll bid for Nigerian banks. The audit resulted in N620 billion ($4.1 billion) being injected into 10 banks to cover bad debts, while the chief executive officers of eight banks were fired and replaced. Read the rest of this entry »
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.
VEDA Technology, the computer electronics manufacturing company with its main focus on production of premium personal computers such as Notebooks, All-in-One and Desktop Computers, has partnered with First Bank Nigeria PLC to put together a financing scheme, where customers can purchase VEDA products and pay over a 12-24 month period/contract.
Nigeria’s four largest banks will boost their domestic market share, leaving smaller rivals behind, following an audit by the Central Bank of Nigeria (CBN) of lenders operating in the country, Renaissance Capital (RenCap) said. 
United Bank for Africa Plc (UBA), Nigeria’s fourth-biggest lender by market value, said it plans to sell NGN500 billion (USD3.25 billion) of bonds. 
