The federal government has restated its position on the takeover of any of the troubled banks that fails to recapitalize.

A statement by the Special Assistant (Communication) to the Minister of Finance, Ms Deborah Okafor, in Abuja yesterday, explained that both the minister, Dr. Mansur Muhtar and the Central Bank of Nigeria (CBN) Governor, Mr. Sanusi Lamido Sanusi, were united in the decision but that it would be a last resort.

According to the S.A., what the federal government intends to do is to buy the shares of any of the affected banks that is unable to recapitalize and then sell it to the public within the shortest time possible.

The statement reads in full, "We have noted recent media reports with respect to the Federal Ministry of Finance and Central Bank of Nigeria sending discordant tunes in relation to government's strategy for restructuring and strengthening the banking system.

"One area that has been mentioned in such media reports is that the Federal Ministry of Finance supports the nationalisation of banks, while the Central Bank of Nigeria is opposed to such intervention.

"It is extremely important to reiterate government's position on this issue. Government's policy position with regard to the restructuring of banks, as enunciated by the Honourable Minister of Finance, Dr. Mansur Muhtar, and Governor of the Central Bank of Nigeria, Alhaji Sanusi Lamido Sanusi, during the annual meetings of the International Monetary Fund and World Bank Group, is that in the event that some of the affected banks are unable to recapitalize and successfully go through a merger and acquisition exercise, the Government may acquire shares in such banks, if they are deemed systemically important. Thereafter, Government equity will be sold at the earliest possible opportunity.

"Successful bank restructuring entails preserving the payment system, assuring that there are functioning banks, and that the residual troubled assets are managed and disposed appropriately.

We would like to emphasize that the Federal Ministry of Finance and the Central Bank of Nigeria would be guided by these three objectives in the on-going exercise of building confidence in our banking sector as well as ensuring that it is safe, sound and transparent.

"As pointed out by the Honourable Minister of Finance in different fora, both the Minister of Finance and the Governor of CBN have had various productive meetings on the issues facing the banking sector.

The Federal Ministry of Finance and the Central Bank of Nigeria are coordinating efforts with a view to ensuring that our banks become more resilient and sound.

"The institutional framework for coordination among regulatory agencies under the Financial Sector Regulations Coordination Committee (FRSC) is being strengthened. On different occasions, the Honourable Minister of Finance had mentioned the strong endorsement by the government of the actions taken by the Central Bank of Nigeria to restore confidence in the system.

"We would like to reiterate the commitment of the Federal Ministry of Finance and the Central Bank of Nigeria to working together towards strengthening the banking system so as to ensure that it continues to contribute to the development of our economy."