Nigeria’s Banks Lost N179bn In 32 Weeks

 

banking hall
banking hall

Report has revealed that the banking sub-sector has lost about N179 billion in the past eight months, characterised by forced trading on the floor of the Nigerian Stock Exchange, NSE.

 The subsector, with a market capitalisation of N2.939 trillion on January 2, 2014, has depreciated in overall growth value to N2.760 trillion due to market depression, losing about N179 billion (6.5 per cent) at date.

It is believed that the run in the equity market might not be unconnected with recent reports that the Asset Management Corporation of Nigeria, AMCON, may have begun the offload of some of its acquired shares from banks’ non-performing loans.

AMCON spokesperson, Mr. Kayode Lambo, said shares acquired by way of buying non-performing loans are being sold quoted companies. The shares, Lambo agreed, were used as collateral for the non-performing loans that AMCON purchased.

On the volume of shares in AMCON’s possession, Lambo said: “We cannot get you the right figure now, but remember that AMCON did not acquire all of them. Some were given to AMCON in settlement of debt.”

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