The House of Representatives Committee on Capital Market and Institutions has alleged that due process was not followed by relevant regulatory agencies during the recent nationalisation of some commercial banks recently.
Chairman, House Committee on Capital Market, Hon Herman Hembe, who made the statement at the weekend, faulted the process of their recapitalisation by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC).
Consequently, the Committee, according to Hembe, will, in conformity with Sections 88 and 89 of the 1999 Constitution (as amended), investigate the Nigeria Capital Market with specific reference to bank nationalisation and recapitalisation.
“Let me particularly point to the ongoing mergers and acquisition of banks, which operations fall directly within the purview of this committee. The process has largely been flawed. Laws, rules and procedures have not been followed. We will step in to ensure the rule of law. Following my appointment, I have received quite a number of petitions regarding these mergers particularly with respect to the fact that some very high bids were disregarded in favour of lower bids. It is my resolve and that of this committee to intervene in the best interest of the Nigerian investor,” the lawmaker said.
Hembe lamented that the capital market had declined due to some of the interventions in the system with All Share Index, which had risen to 57,990.22 points as at the 31st of December 2007 and market capitalisation of N13.29trillion with over 300 listed securities on the Nigeria Stock Exchange witnessing a crash to 20,202.50 points and a market capitalisation value of N6.44trillion, a 56 per cent decline in about four years.
?