Kobojunkie:

@naijatoday, I am sorry but it still does not add up. The reason the US government is able to interfere in the running of banks TODAY is because of the events of recent years. BOFIA has been around since the early 90's if not earlier. Are you saying the Nigerian government has had this power over banks since then or something?

Kobojunkie:

@naijatoday, I am sorry but it still does not add up. The reason the US government is able to interfere in the running of banks TODAY is because of the events of recent years. BOFIA has been around since the early 90's if not earlier. Are you saying the Nigerian government has had this power over banks since then or something?

safariman:

CBN should look at themselves for not regulating these banks and for not examining them for "safety and soundness"
Some heads should roll at CBN as well.  

naijatoday:

I do not understand what you are saying. Are you asking why the CBN has not used the power before? If yes, that is the power of corruption. Did you not read the ThisDay article that said the CEO of Intercontinental ran to Ota to meet Obasanjo, to try and stop Sanusi (if the ThisDay story is true)

naijatoday:

The problem is that in Nigeria some individuals have been made more powerful than the  institutions (banks).

The central bank is also suppose to be independent of the Federal Government. It should not take decisions from the Federal Government, that is why it is important that Presidents (like in the case of U.S) pick someone who has similar beliefs in their agenda.

jacobs123:

instead of the banks to focus on real issues, they went for ego trips. Opening branch in London, advert on CNN, branding of Heathrow terminal 5.
The truth is that most of the bankers know nothing about banking, just traders (rightly called marketers) and if you combine this ignorance with the average Nigerian's lack of integrity and primitive greed you can only get this type of trouble.

People have said it on this forum in the past that Intercontinental, Oceanic were in trouble but some guys rushed to dismiss it and they are still claiming that Sanusi has ulterior motives.

I do not know the BOFIA act but I know Soludo forced out WEMA Bank's Omoyeni from office (how many of you remember) but no mention of the right of CBN then.

By the way only 10 of the banks have been audited and five found wanting. Sanusi kept saying that he won't do anything until all the banks have been audited but I have a feeling that there were pressures on him to stop the exercise from the banks who had been found wanting so he had to wield the big stick. (my evidence: Akingbola was with the Sultan some weeks back and Thisday also reported that he went to beg Obasanjo)

I believe Soludo was a man for his time just as Sanusi is proving to be. Soludo started well and fell off and I wasn't surprised to see him fall off , when you have these corrupt bankers enticing you with money and you remember your poverty days as a lecturer, it will only take special characer and integrity to resist and even at that NIgerians will not appreciate you. Soludo was probably the most glamorous governor of a central bank. (bank chiefs are supposed to be conservative imho!)

Kobojunkie:




Well, I will not get into the IF of the ThisDay Story but, sure one could ask why it has not used it all this while.  One could also argue that this move might be to inject FAVORED people into these seats as well. So, when you say corruption has been reason why it has not been used, I would ask if this is not itself opening the door for the highest bidder to take over now.


Well, are you implying this move by the CBN is a political move then?

Are you saying the Nigerian government has had this power over banks since then or something?

Sunny_bobo:

33. (1) Where a bank informs the Bank that:-
(a) it is likely to become unable to meet its obligations
under this Decree; or
(b) it is about to become unable to meet its obligations
under this decree; or
(c) ti is insolvent; or
(d) where, after an examination under section 32 of this
Decree or otherwise howsoever, the Bank is
satisfied that the bank is in a grave situation as
regards the matter referred to in section 32 (1) of
this Decree, the Governor may be order in wiring
exercise any one or more of the powers specified in
subsection (2) of this section.
(2) The Governor may be order in writing under subsection (1) of this
section:
(a) prohibit the bank from extending any further credit facility
for such period as may be set out in the order, and make the
prohibition subject to such exceptions, and impose such
conditions in relation to the exceptions as may be set out in
the order, and from time to time, by further other similarly
made, extend the aforesaid period;
(b) require the bank to take any steps or any action or to do or
not to do any act or thing whatsoever, in relation to the bank
or its business or its directions or officers which the Bank
may consider necessary and which is set out in the order,
within such time as may be stipulated therein;
(c) remove for reasons to be recorded in writing with effect from
such date as may be set out in the order, any manager or
officer of the bank, notwithstanding anything in any written
law or any limitations contained in the memorandum and
articles of association of the bank;
(d) in respect of a bank, notwithstanding anything in any written
law or any limitation contained in the memorandum and
articles of association of the bank; maximum number of
directors, for reasons to be recorded in writing:-
(i) remove from office, with effect from such date as may be set
out in the order, any director of the bank; or
(ii) appoint any person or persons as a director or
directors of the bank, and provide in the order for
the person or persons so appointed to be paid by
the bank such remuneration as may be set out in
the order;

http://www.cenbank.org/out/Publications/bsd/1991/bofia.pdf

freezy:

Lai Alabi (Intercontinental) - Dunno Much. former ED Union Bank
[b]Funke Osibodu (Union Bank) Was disgraced out of Ecobank, left for First bank as an ED was staged out, , before going to Viju[/b]John Aboh (Oceanic) - Union Bank, First Bank
Nebolisa Arah (Afribank) - Caused trouble Fidelity discount house
Susan Eroche (Finbank) Funke's friend. They chop money together

Looking at this list, I think I prefer the ousted  crew.
We really can deceive ourselves in this country.
Fela was so right

Kobojunkie:

@naijatoday, I am sorry but it still does not add up. The reason the US government is able to interfere in the running of banks TODAY is because of the events of recent years. BOFIA has been around since the early 90's if not earlier. Are you saying the Nigerian government has had this power over banks since then or something?

jenju:

It seems to me that the issue is not weather the CBN has the right to legally sack CEOs of banks.  Fact remains that, the CBN has no authority to sack the CEO of any corporation and these CEOs are typically accountable only the board of directors and shareholders.

What is happenening here is a takeover of these named banks by the CBN.  The banks will be otherwise forced into bankrupcy because of capitalization problems. Given the banks' high level of bad loans that are unrecoverable, N400billion at least,  the CBN had to take over these banks and provide the necessary capital to keep the banks afloat.  Since CBN now controls the banks (as a condition for injecting N400b), they become legally empowered to fire the CEOs.

If the CBN had not injected the said funds, these banks would have had to go bankrupt. Imagine what that will do to the economy.

This is the kind of bailout which took place in the US during their savings & loans scandal.

May Allah in his infinite mercies bail Nigeria out of the strangle hold of the thieving elite.

Cheers,
J

otukpo:

the banks are the reason inflation is too high in Nigeria.

The CBN has to do more than sacking these banks  chiefs

seunallday:


BROS, CBN HAS NO AUTHORITY TO SACK CEOS BUT THEY CAN SHELL OUT 400BILLION, IF I COME TO PAY UR SALARY, THEN I CAN FIRE YOUR BOSS, LOL,
AT LEAST NOW SOMEONE IS DOIN SOME BITING, SANUSI , NICE MOVE
DATS NOT TRUE, ELABORATE ON DAT PLS

freezy:

Lai Alabi (Intercontinental) - Dunno Much. former ED Union Bank
Funke Osibodu (Union Bank) Was disgraced out of Ecobank, left for First bank as an ED was staged out, , before going to Viju
John Aboh (Oceanic) - Union Bank, First Bank
Nebolisa Arah (Afribank) - Caused trouble Fidelity discount house
Susan Eroche (Finbank) Funke's friend. They chop money together

Looking at this list, I think I prefer the ousted  crew.
We really can deceive ourselves in this country.
Fela was so right