Investigations by the Nigerian Tribune showed that more than half of an estimated N2.8 trillion allegedly owed Nigerian banks may be lost through the waivers given to debtors by the Central Bank of Nigeria (CBN)-appointed managements in the last few weeks in an effort to recover part of the bad loans owed them.

The rescued banks include Afribank, Oceanic Bank, Intercontinental Bank, FinBank and Union Bank. Others are Unity Bank, Wema Bank, Bank PHB, Spring Bank and Equitorial Bank.

Investigations by the Nigerian Tribune indicated that the claim that the affected banks carried the apex bank and respective boards along in their decision was false.

This is to guard against speculations that could further erode industry confidence and jeopardize their financial position.

The call is sequel to a statement credited to the CBN Governor, Sanusi Lamido Sanusi, that the exposure of the remaining 14 banks whose audit had been concluded would only be disclosed in early October.

Sanusi had hinged his reason for a delayed release of the report on the fact that the apex bank had just begun the audit of the last three banks last Wednesday.

He said the process would be concluded before declaring the findings, as it did on the ‘stressed’ five banks whose chief executives were sacked on August 14 over corporate governance issues bordering on heavy exposure to margin loans and the energy sector.

The bank executives were also alleged to have granted the loans without collateral.

President Umaru Musa Yar’Adua has told security agencies to assist the banks recover their cash from the customers.

The sack followed the audit report of the Director of Banking Supervision, Special Examination jointly conducted by the CBN and the Nigeria Deposit Insurance Corporation (NDIC).

Those who got the boot are Mr. Sebastine Adigwe, Afribank Nig Plc, Mr. Erastus Akingbola, Intercontinental Bank Plc, Mrs. Cecilia Ibru, Oceanic Bank International Plc, Dr. Bartholomew Ebong, Union Bank Plc and Mr. Okey Nwosu, Finbank Plc. Also gone are the executive directors of the banks.

Presidential spokesman Olusegun Adeniyi told State House correspondents that his boss supported the sack of the five CEOs and has also directed security agencies to assist the new managements recover the loans.

“President Umaru Musa Yar’Adua fully endorses the measures announced by the Central Bank of Nigeria (CBN) at the weekend to sanitise Nigeria’s banking sector and prevent fresh bank failures with their attendant negative effects on the national economy.

Also, new core investor, SW8 Consortium, lifted the seal and has completed arrangements to take over the management of Wema Bank today.

Erastus Akingbola, MD/CEO, Intercontinental Bank.

The Vice-President, Operations, African Development Bank (ADB) Mr. Mandla Gantsho has explained that Intercontinental Bank Plc bagged the $100million facility based on ADB’s conviction that it has an important role to play in accelerating economic growth, social development and economic integration of African nations, in addition to its pedigree in the Nigerian banking sector. ADB is a continental financial institution owned by all African countries.

Mr. Mantsho expressed confidence in Intercontinental Bank’s ability to deliver results in its quest for real sector development, saying that this was why ADB partnered with the Bank amongst all Nigerian banks as beneficiary of the $100million facility.

“There are very clear reasons for choosing Intercontinental this time. It is one of the strongest banks in Nigeria. It has one of the strongest and most capable board and management team and it has got the right focus in as far as development initiatives and programmes are concerned.

It has well developed competence in the small medium enterprises sector and that particular sector, as we all know, creates the largest number of jobs and it promotes economic development into a very long term. So we have chosen Intercontinental Bank for those reasons,” the ADB Vice-President said.

He averred that given its name corporate profile, wide coverage and capital adequacy Intercontinental Bank was in the position to deliver good spread of credit to support needy small and medium scale enterprises in the continent.

“The ADB is committed to supporting this institution with comprehensive package, such as the line of credit. We hope that the support will go a long way indeed in strengthening the real sector in particular while enhancing its impact on the lives of the people of Nigeria “Mr. Gantsho said.

The facility he stated would assist Intercontinental Bank implement its 2008/2012 real sector business plan, noting that this aligned with ADB’s strategic plan. He also noted that the facility is the largest and longest tenured ADB has ever done with any Nigerian institution.

Speaking on the utilization of the funds, Group Chief Executive, Intercontinental Bank Dr Erastus Akingbola said the money would be utilized in transforming Small and Medium Enterprises (SMEs) in Nigeria.

“With this fund, which is a lot cheaper than what we can source from Nigerian depositors. We will be able to support them better, so the entrepreneur will be able to come to Intercontinental and borrow.

‘‘This is the largest of such credit made available to any bank in Nigeria and the tenure is seven years. So we believe this is good for Nigeria and good for our customers,” Akingbola said.

He further explained that the bank would advance the facility to SMEs with track record: “For example we want to see whether such SME is already borrowing from the banks? Are they performing well on the loan they’ve borrowed? We won’t give to serial bad debtors that go all over the banks borrowing and as such we will be careful as to who gets this facility.”

The Intercontinental bank boss stated that the decision to go to ADB was informed by the paucity of long term funds in Nigeria’s money market adding that the loan facility granted by the ADB was a beginning of another phase of mutually beneficial partnership between the continental financial institution and Nigerian banking sector.