Comments on: Where will Nigerian bank crisis lead?

By: nigerialist

nigerialist — Fri, 02 Oct 2009 17:19:28 +0000

I don’t think the fate of central bank governor is really important. Moreover his (the central bank governor) role is to control inflation not enforce debt collection. I think they are in serious trouble and most banks will not get their money from debtors especially if they have political ties. The government should strictly regulate debt levels to avoid putting itself in this stituation in the first place

By: friday ejeh

friday ejeh — Sat, 05 Sep 2009 09:00:57 +0000

the house of representative should stay away from the on going cbn debt recovery and face their primary assignment.

By: Dorothy Ugbe

Dorothy Ugbe — Wed, 02 Sep 2009 17:19:48 +0000

What will the arrest of those owing so much to this Country do? What is required of them is to pay back their huge debts or begin to pay.On the other hand surely they have asserts at home and abroad, these could be turned into money and pay back to the Central Bank if in earnest the Central Bank Body is ready to do their honest duty to this broken Country. We wait to see what the Central Bank Body can do for us Nigerians aboad and at home.
thanks
Dorothy Ugbe

By: Chukwuka

Chukwuka — Mon, 31 Aug 2009 14:15:48 +0000

The truth here is there is no bank reform.It is common knowledge in Africa that when a new regime comes in, it spends more time and energy to discredit its predecessor.When Obasanjo established EFCC we all thought it was a right thing. How many people were actually prosecuted?The truth here is that it is Sanusi’s window dressing to gain public acceptance. Toxic loans and bail outs were done in the UK and US, how many started by firing the MD’s. It is simply a ploy by the North to pull down the south. The next thing you will hear from them now will be Islamic Banking. Let them continue pulling Nigeria down.Why have they not prosecuted Abubakar, Abacha, Babangida that stole more than these amounts that they claim have been recovered. Same to those who think the new CBN governor has the interest of the country at heart.

By: Diran Bright Ayodeji

Diran Bright Ayodeji — Mon, 31 Aug 2009 11:04:14 +0000

Thanks to the EFCC for its bold step. I encourage president Umaru Yar’ Adua and other commited nigerian to give maximum supports the EFCC may require in order to prosecute the MDs/Debtors or whatever they call themselves. In addition, the EFCC in its efforts to crack down on financial crimes should revisit the accounts of all the government departments and bring those found guilty of frauds, embezzlements or misappropriaton of public funds to justice including the past governors, ministers etc.
I do believe that nigerian Banks are not prudent enough in their lending policies but most of these problems were or being caused by illegal arrangement between the bank MDs/officials and the debtors to defraud banks.
Bank lending criteria/policies should be more robust to prevent future crises. The current crisis within banking industry in Nigeria is not akin to international economic crises. It is self designed and made by the people in positions of authority

It is time for a change. Time to emulate the west not in principles but in spirit.

Diran Bright Ayodeji, BA(Hons) Accounting and Business Information Systems, ACCA(Part Qualified),CeMAP (UK)

By: Oluwaseun Olaposi

Oluwaseun Olaposi — Sun, 30 Aug 2009 14:51:42 +0000

The present civil war in the banking sector is the handy work of a particular sect “northerners” in Nigeria. It has been an orchestration set up by this sect as revenge since they lost out tremendously in the last banking consolidation of Soludo. Sanusi is only crying foul about the norms in banking in Nigeria and the corruption of the government by not paying contractors in due time to offset the loans taking from these banks. Also bulk of the debts could also be traced to certain individuals used as clones by the ruling party to obtain loans used by the ruling party PDP in rigging elections.
We all know it is the culture of this tribe to worship humans so long as they are seen as GOD “suppliers of basic ammenities” in their lives. This has been the foundation of the corruption in the banking sector where loans were either given to people perceived as high net worth individuals who claim to be carrying out the 7 point agenda of the President Yaradua led administration and his eroded vision 20 20 20 agenda. Indeed what a visionless agenda experts say Nigeria will soon part ways. All parasitic relationship shall soon be parted out with. It is only pathetic that this so called Imam got these CEOs and MDs were they wanted them.

By: JOLEDO

JOLEDO — Fri, 28 Aug 2009 21:39:22 +0000

The action of the CBN is commendable.Like many segments of the Nigerian Society you have to have connections and bribe officials before you can secure a loan from a bank here.Nearly all banks in the country are guilty of this not only the 5 that have been sanctioned.The CBN would have finished its work investigating all the banks before coming out with an unfinished reform banking agenda.Some of the debtors already dispute what they owe the banks and claim they still have standing and performing contractual agreements those banks and it is only after the sacking of the CEOs that the CBN began to look for evidence to incriminate them, a case of putting the cart before the horse.Then comes the EFCC arresting and detaining bank officials and debtors.The EFCC even went as far as detaining 9 non executive members of one of the banks who are shareholders and are not concerned with the day to day running of the bank.
There’s something I have figured out over a while since the administration of the Yaradua administration.The government have turned it eyes away and continues to promote corruption in public office and instead scuttle and sometime unjustly prosecute the private sector in a bid for their cronies to take over such business.Sanusi said we have peace in the Niger delta and our country is growing.I wonder which country he is talking about.Certainly not the one I live in.

By: BABAFEMI FAGBUYI

BABAFEMI FAGBUYI — Wed, 26 Aug 2009 22:25:26 +0000

cont;FURTHER to my last comment.You will notice that two major sectors where affected by this problem that is OIL&GAS
and Stock buyers.
1-OIL AND GAS -You have 500 million of your own and you approch your BANK to finance your purchase of AGO (dissel) and price crashed from 135 naira to 70 naira in a week.
This have never happened in my 25year in this business.
YOU are sadduled with 10 million liters at shortage of 65 naira per liter That translate to 650 million naira.
Then your 500 million is wiped off and you are left with 150 million with intrest to pay on the 1 plus billion advance that the bank gave you (sofly sofly SANUSI dem not de KILL debtor na prison be the last bus stop)
THAT IS AN EMPLOYER OF LABOUR RUINED EXEPT IF GOD HELP COME,THANKS

By: BABAFEMI FAGBUYI

BABAFEMI FAGBUYI — Wed, 26 Aug 2009 21:49:59 +0000

Before you can understand what is going on in Nigerian Central Bank now you need to 1st look at the background of the NEW CBN governor.
The new gov is coming from 1ST BANK a straight jacket bank that is this is the way we have been doing it and it never fails and that is the way it must be done QED that is no room for any innovation.
2-The NEW GENERATION BANKS gave the ELEPHANTS and The STALLIONS a run for their MONEY.They made them see that there are order ways of doing things order than the way they have been doing it. Example-IF you have two Million naira and you want to buy a hullage truck of say five million 1ST bank will not give you the loan except you produce a landed property to suport it. THIS the MIND set of the new CENTRAL BANK GOVERNOR we know have.
That is every thing must be done according to GO(general order-ZOMBE according to BABA ANIKULAPO KUTI.
3-LETS go to the main issue.
The world exeperenced WORLD ECONOMIC TUSAMI which also affected NIGERIA, no banker will now that stock will kraash 50per in one week exept he is a wizzard.
a costomer bring 30% and ask his banker to back it to invest in stock of a blue chip company an things GO BAD,That to our CBN gov is an uncollaterised loan(RISK MANAGER)
4-WALKING THIS WORLD-if you are afraid to make mistake you are going no where,For those of us who deal with them we knew that a lot of ajustment have taken place if the CBN gov had handle it properly without any botled up anger (carry over anger)things could have been better.
5-Loan from BANKS is almost zero now and you can predict what that mean to the economy.THANKS

By: Dade Coker

Dade Coker — Wed, 26 Aug 2009 12:48:13 +0000

Lamido Sanusi is only continuing what his predecessors – Charles Soludo and Joseph Sanusi started with the banks. Some Nigerian banks were (and apparently still are) a cesspool of murky illegalities. If he is able to succeed (and I pray he does), we will all be the better for it.

His aim is to “ensure that public confidence in the Nigerian banking system is maintained through appropriate disclosures and the reinvigoration of its policy of zero tolerance on all professional and unethical conducts”. (The quotation is from Lamido’s speech on Friday 14/08/09)

Sound Corporate governance must not be sacrificed on any altar. He now needs to go one step further and get rid of the remnants of the old guard on the boards of these banks. The non-executive directors are as culpable as their executive colleagues.

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