The Group Managing Director/CEO of BGL Plc, one of? Nigeria’s leading independent investment banking institutions, Mr. Albert Okumagba, has reiterated that ongoing bank reforms would lead to a much stronger economy.
Okumagba, who made the assertion in Lagos recently,? said a strong banking sector was a sine qua non for a viable national economy.
The investment banking outfit is the lead financial adviser to Ecobank Nigeria Plc and Access Bank in their schemes of merger with Oceanic Bank and Intercontinental Bank.
Ecobank Nigeria and Oceanic Bank received the required shareholders’ approvals in respect of the merger of both banks at their respective court-ordered meetings held in Lagos.
The transaction was effected through a scheme of merger approved by the shareholders of both banks. Okumagba said the merger, of the banks would create Africa’s largest financial institutions, with the combined entity offering unique value and opportunities for both institutions and excellent prospects for future growth for shareholders.
According to him, “The merger will establish the enlarged banks as top tier financial institutions in Nigeria with an established retail franchise, and a top position in Nigeria by assets, loans, deposits and branch network. This will improve the overall competitiveness of the banks”.
Okumagba noted that the banks would be better positioned to negotiate larger trade lines with foreign counterparties, and on better terms, thereby strengthening the bank’s banking franchise.
He said the merger would also result in cost savings generated by the operational efficiencies of the banks, “Such savings are expected in the area of information technology, procurement, cost of funding, and customer acquisition and retention,” he added
The BGL boss said that sequel to the schemes of merger in Nigerian banks could now favourably compete with other banking institutions in? Africa, stressing that “The era when they derogatorily say one big bank in South Africa is stronger than ten biggest banks put together in Nigeria, is gone.”