Chinese, British, South Africans Eye Nigerian Banks, says Sanusi – The Guardian

After several weeks of about the sale of Nigerian banks to foreign investors, the governor of the Central Bank of Nigeria (CBN) Mallam Sanusi Lamido Sanusi has revealed that foreign investors had actually been eyeing Nigerian banks as early as last October, when the stock market started crashing.

He reiterated his position that the five banks have not been tabled for sale and explained that it was not just the five banks, whose CEOs were sacked on august 14) that had attracted investors’ attention.

In an interactive session with the media, at the Marriot Grosvenor Hotel, on Wednesday, Sanusi said “we ‘re aware that a number of Chinese, South African and British banks had previously made enquiries in some banks – not just the five banks, but in other banks as well.”

On whether, or not, the foreign banks had insider information on the health of the banks, Sanusi said: ” No. But you must remember that the situation in Nigerian banks kept declining after October, when the stock market started crashing. They (Chinese and others) had always been interested in Nigerian banks because the potentials were there. On top of that, they thought that the banks were over valued and the valuations were becoming attractive by October and November, when some banks got sick.”

Despite the suitors banging on the door, he made it clear that CBN has not given the green light to any potential buyer. ” We have not encouraged anyone to come forward at this time,” because the “priority at this time is the stability of the financial institutions. But we’ve made it clear that at the appropriate time, interests will be welcome. The priority right now is to make sure that the institutions are stable and returned to the path of competitiveness.”