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Nigeria: UBA Takes Over Liberty Bank
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Vanguard (Lagos)
25 June 2008
Posted to the web 25 June 2008
Michael Eboh
Lagos
The Nigerian Deposits Insurance corporation (NDIC) has formally handed over Liberty Bank to United Bank for Africa Plc (UBA), following the conclusion of the Purchase and Assumption (P&A) arrangement.
Speaking during the handing over ceremony in Lagos on Tuesday, the Managing Director / Chief Executive Officer of NDIC, Mr. Ganiyu Ogunleye, disclosed that with this handing over, UBA has acquired additional N1.7 billion private sector deposit liabilities made up of about 19,604 accounts.
He said, "This transaction brings to six, the number of failed banks acquired by UBA, having earlier acquired Trade Bank Plc, Metropolitan Bank Plc, City Express Bank, African Express Bank and Gulf Bank With this, the depositors of Liberty Bank can be rest assured that they can now get their money from UBA. While NDIC is not averse to the use of innovative marketing techniques to persuade the private depositors to maintain banker-customer relation with UBA Plc, I urge you to ensure that the depositors have easy access to their funds without conditionalities."
He noted that with the P&A arrangement which it recently introduced, the private deposits liabilities of 11 failed banks totaling N74.20 billion have been resolved, accounting for 88 per cent of the N84.5 billion deposits in 13 failed banks after the consolidation era.
According to him, "NDIC was appointed liquidator of 11 of the fourteen banks that whose licences were revoked in January 2006. Sequel to the Federal High Court decision on Societe Generale Bank's lawsuit, the number of banks for resolution by NDIC reduced to 13. However, the law suits filed by the shareholders /Directors of the remaining two banks, namely Fortune International Bank and Triumph Bank are still pending before the courts. Therefore we cannot resolve the private deposit liabilities of the banks until the cases in courts are determined. Furthermore, I wish to note that through the P&A arrangement, the private deposits liabilities of 11 failed banks (Liberty inclusive) amounting to N74.20 billion have been resolved, out of the N84.5 billion of the failed banks."
He disclosed that the NDIC has paid to depositors N3.3 billion out of the N5.2 billion insured deposits of the 34 failed banks before the consolidation era in 2006, in addition to its declaration of liquidation dividends of N11 billion in favour of uninsured deposits out of which N6.1 billion has been paid to insured depositors.
He blamed the owners/directors of Savannah Bank, Peak Merchant Bank, Triumph Bank and Fortune International Bank for the delay in effecting the payment of deposits trapped in the banks to their depositors.
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He said, "The NDIC has shown great concern about the plight of depositors of all the failed banks. However, payments to depositors of four banks, namely, Savannah Bank, Peak, Triumph and Fortune Bank cannot be effected until the lawsuits pending before the courts are determined. The owners/directors of the four banks should be held responsible for the agonies of their depositors."
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