The Central Bank of Nigeria has announced the appointment of acting CEOs for the top five banks whose managements were earlier sacked by the apex bank today. The acting CEOS are: Lai Alabi (Intercontinental Bank), Funke Osibodu (Union bank), John Aboh (Oceanic bank),  Nebolisa Arah (Afribank) and Susan Eroche (FinBank).
The new CEOs are expected to take over immediately.

More to come,

Source
http://www.saharareporters.com/index.php?option=com_content&view=article&id=3459:cbn-appoints-acting-ceos-for-five-nigerian-banks&catid=1:latest-news&Itemid=18

Soludo tried well enough 4 the banking sector,but it looks like he lost something along the lines,now here comes someone that is looking serious.Let's see how far he can go,what good it will bring and for how long he can sustain it.(without the politicians interfering).

Are this banks not a private companies? What right did CBN have to sack their CEO?

walata44:

Are this banks not a private companies? What right did CBN have to sack their CEO?

The CBN has the right. The are publicly traded companies, regulated by the CBN

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

thanks to Sunny_bobo for the link.

walata44:

Are this banks not a private companies? What right did CBN have to sack their CEO?

They are private coys, however, here is the reason why the CBN needs to act and act fast.

he Central Bank of Nigeria has moved to inject N400 billion into five banks in the country following the decision to remove the CEOs and executive directors of the affected banks. The affected institutions are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc, Finbank Plc and Afribank Plc.

The CEOs that have been sacked by the CBN are Erastus Akingbola (Intercontinental Bank); Okey Nwosu (Finbank); Sebastian Adigwe (Afribank); Mrs Cecelia Ibru (Oceanic Bank); and Bartholomew Ebong (Union Bank).

But in a pre-emptive move, Erastus Akingbola, MD/CEO of Intercontinental Bank who got wind of his impending removal called his executive directors to inform them of their certain sack by the CBN.

Akingbola was said to have rushed to Ota yesterday to elicit the support of former President Olusegun Obasanjo to intervene on his behalf and call President Umaru Yar’Adua to stop the CBN from carrying out the sack.

However, the CBN governor, Sanusi Lamido Sanusi, who made this decision known this morning at the Emergency Bankers’ Committee convened by the CBN in Lagos, explained exclusively to THISDAY that the decision was being taken to safeguard the financial sector from systemic collapse.

He said following the audit exercise conducted by CBN’s examiners it was discovered that five of the banks had accumulated margin loans of N500 billion, among other loans, that had gone bad and eroded their shareholders’ funds.

“Some of these banks are quite large institutions and they have been mismanaged, so we had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated.”

He said the CBN had obtained the approval of the President to inject N400 billion into the affected banks to shore up their tier 2 capital to minimum acceptable levels.

Sanusi added that the funds being injected by the CBN was just temporary and does not translate to the government taking a stake in the five banks, as the interim management will be given a period to recapitalise the affected institutions, following which the N400 billion will be paid back to the CBN.

On how the CBN will prevent a run on the banks and create panic in the economy, Sanusi said the CBN intends to make it clear that the money being injected by the reserve bank as well as the decision to guarantee interbank placement should allay depositors’ concerns.

The CBN, he stated, stands ready to ensure that no bank collapses in the country, but will encourage them to seek for funds to raise fresh capital and merge with stronger banks.

He said an interim management and board for the affected banks will be put in place to run the institutions until they are taken over by new management teams and owners.

********************
If they never acted now, i am sure in another few months, we will be the one to be calling for the head of Sanusi for not acting fast.
Some of the banks are now calling on the FG to help with people that has refused to pay what they owe them

************************

They are private coys, however, here is the reason why the CBN needs to act and act fast.

he Central Bank of Nigeria has moved to inject N400 billion into five banks in the country following the decision to remove the CEOs and executive directors of the affected banks. The affected institutions are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc, Finbank Plc and Afribank Plc.

The CEOs that have been sacked by the CBN are Erastus Akingbola (Intercontinental Bank); Okey Nwosu (Finbank); Sebastian Adigwe (Afribank); Mrs Cecelia Ibru (Oceanic Bank); and Bartholomew Ebong (Union Bank).

But in a pre-emptive move, Erastus Akingbola, MD/CEO of Intercontinental Bank who got wind of his impending removal called his executive directors to inform them of their certain sack by the CBN.

Akingbola was said to have rushed to Ota yesterday to elicit the support of former President Olusegun Obasanjo to intervene on his behalf and call President Umaru Yar’Adua to stop the CBN from carrying out the sack.

However, the CBN governor, Sanusi Lamido Sanusi, who made this decision known this morning at the Emergency Bankers’ Committee convened by the CBN in Lagos, explained exclusively to THISDAY that the decision was being taken to safeguard the financial sector from systemic collapse.

He said following the audit exercise conducted by CBN’s examiners it was discovered that five of the banks had accumulated margin loans of N500 billion, among other loans, that had gone bad and eroded their shareholders’ funds.

“Some of these banks are quite large institutions and they have been mismanaged, so we had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated.”

He said the CBN had obtained the approval of the President to inject N400 billion into the affected banks to shore up their tier 2 capital to minimum acceptable levels.

Sanusi added that the funds being injected by the CBN was just temporary and does not translate to the government taking a stake in the five banks, as the interim management will be given a period to recapitalise the affected institutions, following which the N400 billion will be paid back to the CBN.

On how the CBN will prevent a run on the banks and create panic in the economy, Sanusi said the CBN intends to make it clear that the money being injected by the reserve bank as well as the decision to guarantee interbank placement should allay depositors’ concerns.

The CBN, he stated, stands ready to ensure that no bank collapses in the country, but will encourage them to seek for funds to raise fresh capital and merge with stronger banks.

He said an interim management and board for the affected banks will be put in place to run the institutions until they are taken over by new management teams and owners.

********************
If they never acted now, i am sure in another few months, we will be the one to be calling for the head of Sanusi for not acting fast.
Some of the banks are now calling on the FG to help with people that has refused to pay what they owe them

************************

I still think that banks suppose to have some level independent, the removal of any bank CEO should be done by the shareholders of the bank. It is now left to the Govt to put in place appropriate regulator to watch the activities of these banks and sanction any banks that violate their rules.

It's just like The Bank of England sacking the CEO of Barclays, Abbey, Natwest, Llodys etc in Britain.

walata44:



I still think that banks suppose to have some level independent, the removal of any bank CEO should be done by the shareholders of the bank. It is now left to the Govt to put in place appropriate regulator to watch the activities of these banks and sanction any banks that violate their rules.

It's just like The Bank of England sacking the CEO of Barclays, Abbey, Natwest, Llodys etc in Britain.

They have some level of independence, however, it is important that the govt comes to the aid when they are going down, since the economy of the nation and credit rating depends on them

So Intercontinental was not stable all along, na wa o.

I hope our money is safe.

vikiviko:

So Intercontinental was not stable all along, na wa o.

I hope our money is safe.

It was all a face value.
Jokes apart, it could be safe, but now will be safer.
loaning to bad people is just the bad biz

You dont say. Cecilia ibru?

This is just the tip of the iceberg, the banking world is full of smokes and mirrors.

I am not sure if I am the only one noticing this, but sunny bobo's seems to be missing some key phrases/points

[size=13pt]

32.
(1) The Governor shall have power to order a special examination or investigation of the books and affairs of a bank where he is satisfied that –

(a) it is in the public interest so to do; or

(b) the bank has been carrying on its business in a manner detrimental to the interest of its depositors and creditors; or

(c) the bank has "insufficient" assets to cover its liabilities to the public; or


(d) the bank has been contravening the provisions of this Decree; or

(e) an application is made therefore by-


(i) a director or shareholder of the bank;

(ii) a depositor or creditor of the bank:


Provided that in the case of paragraph (e) of this subsection, the Governor may not order a special examination or investigation of the books and affairs of a bank if he is satisfied that it is not necessary to do so.
 
(2) For the purpose of subsection (1) of this section, the Governor shall have power to appoint one or more qualified persons other than the officers of the Bank to conduct special examination or investigation, under conditions of confidentiality, of the books and affairs of the bank.

 
(3) Nothing in this section or in any other section of this Decree shall be construed as precluding the Governor from appointing one or more officers of the Bank as examiner apart from those mentioned in section 30 of this Decree and ascribing to such officers such other designations as he deems fit, and from directing or requiring all or any of the officers to exercise all or any of the powers of the Director of Banking Supervision under this Decree.

 
(4) The Governor shall have power to order that all expenses of or incidental to an examination or investigation be paid by the bank examined or investigated.

 
 
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 suspend payment to any extent; or


(c) it 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 by order in writing exercise any one or more of the power 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 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 order 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 directors 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) with the approval of the President, 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 limitations contained in the memorandum and articles of association of the bank, and in particular, notwithstanding any limitation therein as to the minimum or maximum number of directors, for reason to be recorded in writing –

(i) remove from officer, 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;
 
(e) appoint any person to advise the bank in relation to the proper conduct of its business, and provide in the order for the person so appointed to be paid by the bank such remuneration as may be set out in the order.[/size]

So is sanusi saying Unity bank is stable. That can not be true. Union Bank, Oceanic and  International Bank  are more stable than Unity bank. Something look funny here. I have look at the bank distribution. I do not think Unity bank makes money.

adebanjou:

So is sanusi saying Unity bank is stable. That can not be true. Union Bank, Oceanic and  International Bank  are more stable than Unity bank. Something look funny here. I have look at the bank distribution. I do not think Unity bank makes money.

They have only audited 10 banks so far. The remaining is expected to end this month or middle of September, Unity bank is not one of the 10 banks. The audit is not really about making profit or loss but how this companies have been giving out loans to people or companies. Did they follow their credit risk procedure, etc.

Na Sanusi sack all these people then