Nigeria cuts fees to speed bank mergers

LAGOS – The Nigerian Securities and Exchange Commission moved to speed up reform of the financial sector by offering banks a hefty discount in fees if they conclude mergers or acquisitions by a December 31 deadline.

The country’s central bank in July 2004 directed Nigeria’s 89 banks to raise their capital individually or through mergers or they would lose their licences, but only the United Bank for Africa has successfully acquired another bank since then. The securities regulator said it would charge banks that complete deals before year-end one per cent of the nominal value of their shares instead of one per cent of the market value.About 21 groups comprising 64 banks are expected to emerge from the consolidation process.- Nampa-ReutersThe securities regulator said it would charge banks that complete deals before year-end one per cent of the nominal value of their shares instead of one per cent of the market value.About 21 groups comprising 64 banks are expected to emerge from the consolidation process.- Nampa-Reuters