Sanusi has already failed. His action has damaged and not restored consumer confidence in the banks, instead it will encourage people to withdraw their money.

What he should have done is introduced a deposit guarantee scheme - for example the first 12 million naira in every account is guaranteed even if the banks fail. Anything above that amount you leave there at your own risk. The UK has a similar scheme, that and smart policy making has helped them get through their banking crisis

Sanusi has already promised these banks to foreign investors, hence the speed of his actions. This govt has never moved so fast for anything.

Nigerians were buying shares left right and centre, forgetting that what goes up must come down. Now their share certificates are worthless, they are looking for scapegoats.

Why is the Minister of Finance, Dr. Mansur Muhtar silent on this matter?

www.pdbraide..com


Monday, August 17, 2009
Naija Bank Brouhaha

When Nigerians discuss what is wrong with their country (a beloved National pastime) bad leaders are usually fingered as the main cancer.

If any naive person asks why we choose to accept these bad leaders the answer is simple; we didn’t vote them in so they aren’t accountable to us. They won’t listen. Nothing can change. Only God can save this country.
So we offer support either passively through silence or actively working the “man know man” network to redistribute some survival cash in the green white green jungle. There is even a wily breed that vociferously attacks any leader(even girls scouts) preferably on TV, in widely cc’d emails to potential NGO donors and in the pages of papers for recognition and eventual settlement as consultants to any side with the deepest pockets. We all agree on what we would like but not on how to get there.

What has this got to do with banks? Well everyone is in shock over Sanusi Lamido of the CBN’s (Central Bank of Nigeria) [url=http://cleansing of the commercial banking Aegean stables]cleansing of the commercial banking Aegean stables[/url] where not less than 5 bank CEO’s where sacked over reckless management style that has eroded shareholders funds while actively concealing their weak state over time. Apparently risky investments in the downstream oil and gas sector in a market where oil prices tumbled and Naira value sommersaulted have contributed to the sack of the CEO's. Does CBN have the power to do this? Yes.

My question is why did it take Sanusi Lamido of the CBN to do what shareholders and boards should have done for themselves?

I think we have a peculiar concept of what leadership is. For many Nigerians leadership is simply a position. A position which when attained has little to do with responsibilities or functions. Once divorced from systems or institutions the “Big oga” personality cult is the next logical focus. From our leaders we demand favours, praise sing, eulogize, or envy instead of demanding service and according respect based on exemplary performance and honour.

So if you accept bad leadership because leaders are rigged in through fraudulent elections how do you accept bad leadership in an institution THAT YOU WILLINGLY INVESTED YOUR MONEY IN? I can hear the chorus of “but we didn’t know”. Did you want to know?

It is obvious that the board members either lacked the courage to blow the whistle and or profited from insider deals at the expense of shareholders. The shareholder association leaders must all be scrutinized thoroughly as well.
Let us not delve into why this escaped CBN’s hammer for this long. The point is there is a structure and there are processes within the system that should prevent this sort of corporate fraud from occurring, which will never work if we Nigerians continue to apply our feudal passive notions of leader and follower to business investments.

This hasn’t only happened in Nigeria. People world over have been fooled by slickly presented and economical with the truth financial organizations that are little more than private business funds for an incestuous elite whose greed ignored the principles of prudent investment instead choosing high risk high yield ones.
I agree this is so, but I could not help noticing that our refusal to play active roles in governance structures corporate or otherwise, the culture of blame, refusal to take responsibility for better outcomes and an inability to sustain collective action affect our progress as a Nation in every sector.

In summary let’s turn to some good ole African proverbs. A lizard in Calabar cannot become an alligator in China. What is bad is bad. No amount of awards, CNN ads, Chieftaincy titles, honorary degrees, newspaper inches, conflicting financial ratings, or shameless ethnic conspiracy theories should substitute for un-doctored balance sheets or an answer to the question; what is happening to my money?

Advice to Ms/Mr/Mrs shareholder/depositor

• You have rights. Use them.
• Sue all those 419 foreign financial “thingamajigs” that gave fake ratings to these banks.
• Harass the boards. They owe shareholders with 1 share an explanation as to how this happened.
• Do the same to your shareholder association leaders
• Remember leaders have jobs and it’s part of your job to ensure they do it.

Extra rant,

Banks, wouldnt you rather fund manufacturing and businesses that provide jobs, instead of supporting the self destructive mad irony of the 5th largest producer of crude in the world importing fuel for domestic use?

Extra reading

The Big Rot http://www.234next.com/csp/cms/sites/Next/Home/5444696-146/story.csp

The fall of Erastus Akingbola http://dayocoker./2009/08/14/the-fall-of-erastus-akingbola/

Saving Depositors
http://www.234next.com/csp/cms/sites/Next/Money/Finance/5444751-147/Saving_depositors_from_flamboyant_bankers.csp?CSPCHD=00000001000036vwi2Yp000000SSLbCKGQ4oGuiGMurGZyvg--

Rome was not built in a day. Neither was it built by one man.

Nigerians should learn to appreciate good things.

Soludo did a good job before he left. Sanusi cannot be a copy of Soludo. There are differences in human reasoning and ideas.

The fact that Sanusi took the decision he took is in no way relevant to the tenure of Soludo.

Soludo did his best and left. We also expect Sanusi to do his best. Soludo and Sanusi are not in competition.

If everyone in Nigeria will put in their best in any work they are doing, Nigeria will be a better place for all of us. And there will be no need for our best Nigerian brains to serve the foreign countries they now call home.

To use such word as displayed above as the opening gambit to an argument shows the dept of how low you are intellectually, to equate your IQ with normal human beings will be a diservice to the wild animals roaming the sarangetti in Kenyan. It is apparent the animalistic instict in man that has been in extinction for centuries is still intact in your mind, your body and soul. I just hope the culture, courtesy, and civilty of the host nation you are hibernating will rob off on you with time. You can beg to differ but to call people names is uncalled for.

Man my IQ is doing great. From standardized testing I have taken its supposed to be in the top 1-2%. I reiterate "you are an idiot"

By the way mate your post was riddled with shitty grammar, I have helped you perform some corrections. Also stop using a lot of lofty words, be simple and concise it makes life easier:

To use such a phrase as displayed above as the opening gambit to an argument shows the depth of your intellect, equating your IQ with humans will be a disservice to the wild animals roaming the kenyan wild. It is apparent that the animalistic instinct in man that was hitherto in extinction for centuries is quite intact in your mind. I just hope that the culture, courtesy, and civility of the host nation you are living at will rub on you with time. You can beg to differ but to call people names is uncalled for.

Also read the irony in your statement--you go on a name calling spree while admonishing me for s smaller case of name calling. Also by the way everything you used as an insult could be paraphrased into just one phrase 'You are a beast of no nation." Stop being overly wordy. Man by the way learn how to insult concisely , this is a public forum and it is a requisite skill .

Soludo undertook the most courageous step in nigeria's central bank history.Sanusi has started on a good and courageous note as well.Hope he goes far and conclusive.Comparism should be an issue here.Sanusi,s case may just be another bravado that heralds new appointments in this part of the globe.He doesn't seem to have a grasp of the dimension of what has stired up.He either contains it or it consumes him.Na naija we de, vodoo economy holdsway.

The end of a matter is better than the beginning. Soludo started well but in the end they got him cheap and we are now seeing the reality of the situation. Sanusi has started well as usual but how will his end be?

By the way mate your post was riddled with shitty grammar, I have helped you perform some corrections. Also stop using a lot of lofty words, be simple and concise it makes life easier:

To use such a phrase as displayed above as the opening gambit to an argument shows the depth of your intellect, equating your IQ with humans  will be a disservice to the wild animals roaming the kenyan wild. It is apparent that the animalistic instinct in man that was hitherto in extinction for centuries is quite intact in your mind. I just hope that the culture, courtesy, and civility of the host nation you are living at will rub on you with time. You can beg to differ but to call people names is uncalled for.

Also read the irony in your statement--you go on a name calling spree while admonishing me for s smaller case of name calling. Also by the way everything you used as an insult could be paraphrased into just one phrase 'You are a beast of no nation." Stop being overly wordy. Man by the way learn how to insult concisely , this is a public forum and it is a requisite skill  .


This is not an essay or grammer contest it is all about communication, if you grasped the message then every other thing is secondary. No human has the perogative  use of the english language it is a language that is evolving, if a mordern english speaker were to write to a 17th century scribe, the latter will be lost he will be convinced that what is written is greek or latin.

idiot a word v a phrase

idiot is no more a word in english it is now a phrase, who are u to criticise my writing style.

the sarrengenti for your information is a huge spanse of savannah within the rift valley ecosystem in east africa strecting from northern kenya to the borders of southern Tanzania and then into malawi, to paraphase my write up is an unnessceery gesture thank you.

I know your type master plagarist write your own original article and let us read it.

I pity you. You are insulting someone online, you haven't figured out how much the person has achieved. You better learn to say yessir to me. Calling me plagiarizer and running your mouth.

Despite all this you are using spurious logic to support your arguments, and like most nigerians, using extremely supercilious language to buttress your point. I am just advising you to be less wordy and flamboyant when writing, because the purpose of writing is conveying your meaning immediately. To show you, i dont plagiarize, let me write a little ditty for you:

Mr Know all is an idiot, who lived in the house of idiots and served in the house of idiot. He worked as an idiot, drove to his job as an idiot. Infact he is an idiot. Idiot.

Ok now applaud my brilliance. I have successfully called you an idiot without using very verbose grammar. Idiot.

mannygee:

Mr. KnowAll (abi wetin be your name sef), with this ya kind of name, i wonder why the FGN has not deem it fit to offer you appointment in one of our key sector atleast to find solution to our numerous problems. I have followed ya arguments with every poster here and i have come to realise that people like you ONLY OILED the chain just to keep the machine moving. Infact, we have people like you serving as senators in the National Assembly. These set of Senators have a unique character: They antagonise every bill in the house be it good or otherwise BUT they will NEVER sponsor any bill of their own. Mr. KnowAll i hail you ooo

To those who are very objective here (and not bad soothsayer), i support your view on STRATEGIC CONTINOUS IMPROVEMENT (SCI). This is the transition connecting the era of Soludo to Lamido. Those who read and understand Strategic Management will know what am saying here.

Having said that, sack or no sack, my greatest fear is in Ya'radua Administration. What is happening in the Banking Sector today is just one of the numerous problem in Nigeria economy. I need not mention the Gold medal winning Power Sector, The Silver winning Education Sector and the Bronze winning Health Sector. My people, Ya'radua admistration to be candid, have perform below pass mark (this is no news anyway).
Unless there is credible election in this Country Nigeria, then Nigerians will everly be denied credible governance that has the agressive solutions to the problems in our economy.

On a final note, Mr. KnowAll, i want to honour you with another name today. By the power conferED on me today by nairalanders, i hereby give you another name, MR. PUBLIC TAP (make u continue to dey run ya mouth on Nigeria Public Servants that have credibly served us well against all odds and yet seems to be in ya own black book).

Did i hear say congratulations to him?

Mr Know All, your name is really following you If I were you, I will just come down to Nigeria and salvage the country from collapse. the country needs your wisdom

pity you. You are insulting someone online, you haven't figured out how much the person has achieved. You better learn to say yessir to me. Calling me plagiarizer and running your mouth.

Despite all this you are using spurious logic to support your arguments, and like most nigerians, using extremely supercilious language to buttress your point. I am just advising you to be less wordy and flamboyant when writing, because the purpose of writing is conveying your meaning immediately. To show you, i dont plagiarize, let me write a little ditty for you:

Mr Know all is an idiot, who lived in the house of idiots and served in the house of idiot. He worked as an idiot, drove to his job as an idiot. Infact he is an idiot. Idiot.

Ok now applaud my brilliance. I have successfully called you an idiot without using very verbose grammar. Idiot.

Report to 



A simple word of advise for you Mr foul language it is evident that going on the internet and trading insults is one of your favourite past time, I will not start now nor descent to that level of childish immaturity. You almost if not de-rail the thread by your incivility and insensitivity, in a time and hour,  our dear country needs positive contribution from supposedly enlightened expat,  you  decide to show and remind them that some expats are even a bigger idiot than those running the country, knowing that it is common and established knowledge that our leaders come on to the Internet not only to gain, formulate and introduce new government initiative but to learn about how things are done in other climes.

Your antics and language is not only un-aspiring it is bad for the younger members of our community.

I think I made a mistake responding to your comment, normally I don’t respond to such postings because, one has to ask one’s self for how long do one want to continue to trade what can only be described as an uneventful, unproductive and a demeaning way of communicating. Since I am not skilled in the dark art of insulting and abusing people on the net, I can only submit to your superior prowess in it, knowing fully well our parts will not cross again.

If for any reason you answer any of my future postings as you did with your opening statement I will not only ignore it  in its totality I would also view it as something that has to be overlooked and seen as the ranting of a mad, bored and frustrated man.

While I think that Soludo should be questioned if need be, But you've got the bank MDs, the bank debtors, and as been emerging of late, the Federal and state governments ( which if you are conversant enough, posses the ugly habit of owing private businesses without recourse) which is a huge factor in most of these debts. Last time I checked the FG was connected to 40% of these debts.
Be patient my friend, a lot of light still needs to be shed before bringing Soludo into it.
By the way I want to hear from you personally if you find any of the events in the Nigerian banking sector as unusual.
I think this has been an will still be the general practice for years to come.
A bank is not a public institution like NNPC, Nitel etc A bank is a private company which engages in various levels of risks as far as it is deemed as acceptable by the board of directors.
I want to know if you are educated enough on the issues you and a lot of seemingly ignorant people are talking about.