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Hilbroy Advisory: Anxiety Heightens Over Union Bank, Oceanic, Intercontinental, Bank PHB, Others
Hilbroy Advisory: Anxiety Heightens Over Union Bank, Oceanic, Intercontinental, Bank PHB, Others
Financial experts believe the Federal Government does not have to re-invent the wheel to re-structure the economy because all the studies had been done and these formed the road-map.
Montreal,
Quebec,
Canada
(prbd.net)
22/06/2011
Montreal, Quebec, June 21st, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: The directive from the Central Bank of Nigeria, urging the rescued banks to recapitalize by September 30 or be handed over to Nigeria Deposit Insurance Corporation for liquidation is unsettling to the stakeholders of affected banks and depositors. Financial experts revealed that the economy could lose over N3.8trillion depositors and shareholders money, if the apex bank imposes liquidation sanction on the banks.
While shareholders of the rescued banks are asking for an extended period of 12 to 18 months to enable the banks recapitalize, the governor of CBN, Sanusi Lamido, maintains that liquidation remains the last option for any of the banks that fails to recapitalize before the final deadline, even as the apex bank is strict on withdrawing its inter-bank guarantee by September 30.
Speaking with Sunday Business, Director General, West African Institute for Financial and Economic Management, owned by central banks of Nigeria, Ghana, Liberia, Gambia and Sierra Leone, Prof Akpan Ekpo, said the bailed-out banks namely, Afribank Nigeria Plc, Bank PHB Plc, FinBank Plc, Intercontinental Bank Plc, Oceanic Bank International Plc, Spring Bank Plc and Union Bank of Nigeria Plc, should meet the CBN's deadline on recapitalization to enhance efficiency in the financial sector of the economy.
He said, "The banks must to be aggressive about recapitalization without waiting for the apex bank to impose sanctions. The operators of these banks were told long time ago and they knew the banks are weak. So, they need to recapitalize to raise their capital base. The CBN is also acting based on the sluggishness of the banks. Recapitalization does not mean they should raise their capital base on their own. They could recapitalise through merger and acquisition. The only thing is that we have few banks controlling the financial sector in Nigeria. So, merger and acquisition would further reduce the number of the banks, thereby making the industry less competitive".
Accordingly, aside from the efforts by CBN to reposition the financial sector for greater productivity, the economy needs holistic transformation in terms of infrastructure development in every sector. "President Goodluck Jonathan should begin to re-engineer, rekindle the economy to a level of sustained inclusive growth and development. This requires competent cabinet made up of seasoned, tested and competent technocrats, as well bureaucrats. If the criteria for getting effective cabinet is through federal character, it is no problem because it exists in all Nigerian tribes and ethnic groups across the nation", Ekpo stressed.
Financial experts believe the Federal Government does not have to re-invent the wheel to re-structure the economy because all the studies had been done and these formed the road-map. Once power crisis is tackled, the issue of unemployment, especially among youths, would be solved. For instance, federal projects should create jobs for the citizens. There must be human capital development to enhance sustainable growth.
Nigeria’s economy in the last four years witnessed a sluggish growth looking at other socio-economic indicators like health, education, unemployment rate, life expectancy rate and infant mortality ratio. Government must adopt a developmental democratic framework to reduce poverty drastically in the next four years.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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