14th June, 2011
A Federal High Court sitting in Lagos, Southwest Nigeria, this morning dismissed the suit filed by the former CEO of the Intercontinental Bank, Dr. Erastus Akingbola and one of the former directors of the bank, Bayo Dada, challenging the planned sale of the bank by the Central Bank of Nigeria to Access Bank.
In his ruling, Justice Okechukwu Okeke, who presided over the issue, said the CBN had enough powers to supervise banking operations in accordance with section 48 of BOFIA.
He also said the CBN has powers over who becomes the director of any bank.
In his words: “the CBN can validly remove and appoint a bank director.â€
Justice Okeke further said the suit is not only belated, it is an abuse of court process.
Shortly after the ruling, the Group Managing Director of the bank, Mr. Layi Mahmud Alabi said the coast is now clear for the bank’s recapitalisation before the CBN deadline.
He further said it was the best time to move the bank to a greater height.
—Akin Kuponiyi