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.
“There are opportunities across the board,” Nxasana, 52, said. “We are still looking at all the options.”
FirstRand first mooted its African expansion plans last June while Standard Bank is also looking to add to its assets in Nigeria. Additionally, ChairmanKing.com reported in September that Barclays/Absa was applying to open an office in Nigeria.
While the country’s banking crisis last August saw the central bank inject N620 billion ($4.1 billion) into 10 banks to cover bad debts, the economy’s growth potential means Nigerian institutions offer “nice opportunities,” investor Mark Mobius said last week. Read the rest of this entry »
The Central Bank of Nigeria (CBN) yesterday made good its threat to publish names of non-performing debts – owed mostly by politicians, entrepreneurs, and shareholders/directors – whose companies secured loans totaling N450 billion from five banks. 
After wowing the world with their recapitalisation exercise, Nigerian banks quickly fell into bad habits and a stock market bubble swiftly followed. However, some of them are beginning to see the light.
