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CENTRAL BANK OF NIGERIA, ABUJA
CBN Website:www.cenbank.org
PRESS RELEASE
CBN AWARDS MANDATES FOR EXTERNAL ASSET MANAGEMENT
The Investment Committee of the Central Bank of Nigeria (CBN) at itsmeeting of 3rd October, 2006 appointed external fund managers for ourforeign reserves in order to allow for professional management,diversification of investment and to leverage on the expertise of the foreignbanks to transform Nigerian banks into global financial institutions.The CBN has traditionally kept the external reserves as deposits with foreignbanks. This is the first time that it is appointing foreign assets managers tomanage part of its reserves, in line with global best practice.As a first step, the Investment Committee decided to award mandates for US$7 billion out of the CBN portion of the total external reserves. The $7billion is awarded to 14 out of 17 reputable Global Asset Managers whichnot only met the CBN’s requirements for appointment as external assetsmanagers, but also for partnership ties with Nigerian banks, as follows:
S/NO. ASSET MANAGER NIGERIAN PARTNER
1
Black Rock 
 
Union Bank of Nigeria Plc
 2
J.P. Morgan Chase Zenith Bank Plc
3
H.S.B.C First Bank of Nigeria Plc
4
BNP Paribas Intercontinental Bank Plc
5
UBS United Bank for Africa Plc
6
Credit Suisse IBTC – Chartered Bank Plc
 
7
Morgan Stanley Guaranty Trust Bank plc
8
Fortis Bank PHB Plc
9
Investec Fidelity Bank Plc
10
ABN Amro Access Bank Plc
11
Cominvest Oceanic Bank Plc
12
ING Ecobank Plc
13
Bank of New York Stanbic Bank Plc
14
Crown Agents Diamond Bank PlcThe three (3) other foreign institutions, namely; Barclays Bank (DCO),Deutsche Bank AG and Pacific Investment Management Company(PIMCO) were technically qualified but could not be awarded mandatesbecause they did not have local partners.The Committee noted that:(i)
 
All the foreign institutions are reputable international assetmanagers with excellent track records each with a minimum creditrating of ‘AA’ rating by international rating companies.(ii)
 
Except for Crown Agents, each of the selected Asset Managers hasAsset under management in excess of US $50 billion - indeed thevolume of assets under their management ranges between US $50billion and US $1.6 trillion(iii)
 
In determining the amount of the mandate to each asset manager,consideration was given to the size of the shareholders’ funds of itslocal partner.The effective take off of each mandate is contingent on the strength of thepartnership between the local banks and their foreign partners. The CBNwould be sending specific suggestions to each group to enable themstrengthen their partnerships.
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