| By Nick Kochan and Charles Hardwick |
Lamido Sanusi, Nigeria’s central bank governor, says that the affected banks are turning their businesses around and are now seeking capital injections from investors. “These banks were on the brink of collapse and they’ve been kept afloat by a combination of funds from central bank and a very good management. They have cut down costs, they have returned the banks to profitability and they are engaging potential partners and are looking for investors. In the circumstances and given the global situation, they have done very well,” Sanusi tells Euromoney in an exclusive interview.
In a sign that the sector’s troubles might be coming to an end, the International Finance Corporation, the private-sector arm of the World Bank, has announced that it intends to provide $300 million in funding to two Nigerian banks, Guaranty Trust Bank and First Bank, and will provide support to another seven at a later stage.
“In the wake of a crisis, Nigeria has made significant progress towards creating a policy environment in which good banks can thrive,” says an IFC representative in Nigeria.
Much of the credit for that goes to Sanusi, a former chief risk officer at UBA and First Bank.