The Central Bank of Nigeria (CBN) now requires shareholders to acquire consent in order to avoid a repeat of Oba Otudeko and FBN Holdings.
Insiders in the financial services sector took advantage of open market deals to secure their stakes in many local banks.
Most of these ostensibly prominent stockholders owe banks considerable sums in insider loans, in addition to securing credit at below-market rates.
According to MarketForces Africa, the majority of Nigerian banks’ significant owners have loans from various associated parties. According to information from certain operators’ financial reports, these loans are frequently written off for non-performance.
According to new stipulations from the CBN, investors planning to acquire at least a 5.0% stake in any banking operation will need to receive prior approval or no objection from the apex bank
Commenting on the development, CardinalStone Partner said this policy is likely to prevent uncertainties linked to unexpected tussles for control of banks. Dangote Reacts to EFCC Visit to Headquarters
It could potentially provide more stability in banks’ boards and strategy, the investment banking firm said in an outlook for 2024.
