Nigeria's central bank has received bids for four of the nine lenders rescued in a $4 billion bailout last year, according to central bank Governor Lamido Sanusi.

Sanusi says two foreign institutions were involved in the bidding process, as well as several local banks and private equity firms in partnership with foreign banks.

‘The advisers have finished analysing bids already received for four of the banks. We expect the bids for the others to have been completed by the end of this month.’

The recently created asset management company (AMCON) will purchase non-performing loans with collateral and chase the recovery of the bad loans. It will also inject funds and take equity stakes if there are unsecured loans which need absorbing.

Sanusi says a lot has been done to value the bad loans and gauge how much of them are unsecured. Deals to buy non-performing loans from the rescued banks will soon be announced.

‘I don't see any reasons why AMCON can't take these decisions in the next few weeks, says Sanusi, adding that the recovery of bad assets would take much longer.

The central bank has prioritised getting credit flowing again in Nigeria after last year's $4 billion bank bailout.

Interest rates have been on hold at 6% for more than a year and inflation is in double digits.

Source: Reuters