It is the last few weeks before the bailed-out
Nigerian banks have to meet the Central Bank of Nigeria’s (CNB)
higher capital reserve ultimatum – and now another bank seems to
have crumbled under the requirements.

Following the acquisitions of Intercontinental
Bank and Finbank, Oceanic Bank has become the latest bank to be
snapped up by a financially stronger bank ahead of the capital
deadline in September:

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Ecobank has emerged as the winning bidder for
Oceanic Bank and is going to recapitalise the weaker lender.

The Central Bank of Nigeria has given eight
banks which where bailed out in 2009 time until the end of
September to meet higher capital requirements to prevent a lack of
liquidation in the case of another financial crisis.

 

Nigerian consultancy CEO: “Bank numbers to decline by at
least 4”

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Opeyemi Agbaje, CEO of Nigeria-based
consultancy company Resource and Trust, which provides advisory
services to several Nigerian banks, told RBI that he
expects the country’s number of banks to decline from 24 to
“between 18 and 20” by the end of the year.

Oceanic Bank managing director and CEO, John
Aboh, said that the agreement between the two banks “puts beyond
doubt” Oceanic Bank’s ability to meet the recapitalisation deadline
by the end of September.

In May, First City Monument Bank (FCMB)
announced the
acquisition of and merger with Finbank.

In July, more M&A news followed with

acquisition of Intercontinental Bank by Access Bank.

In mid-July, Union Bank Nigeria signed a $750m
deal with private equity group Africa Capital Alliance to fund and
meet the recapitalisation target required by the Central
Bank.