February, 15 , 2010

Industry watchers have noted that no significant agreements can be reached with new investors in the banking industry until the Asset Management Company becomes fully operational.Victor Ndukauba, a finance analyst at Afrinvest, a finance research and analysis firm, said that the Asset Management Company is a precondition for any significant negotiations to begin in the Nigerian banking industry.

“If foreign investors are allowed to operate in the Nigerian environment, it means that they would need the N25 billion capital, as requested by the Central Bank of Nigeria, which is a cash payment and then they will still need funds to put the balance sheet in place so that they can perform the very basis of banking, which includes lending credit to customers, among others.”Spokesperson for the Central Bank of Nigeria, Mohammed Abdullahi, said the Asset Management Company Bill has gone through second reading in the House of Representatives.

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