On Agust 4, Sanusi Lamido agreed that “the removal of any bank’s board and its management would not in any way solve the systemic problems in the banking sector, and that the CBN’s immediate concern was on how to institute measures that would ensure that the banks are healthy and can meet minimum capital and liquidity ratio requirements to perform their primary role of intermediation at interest rates that do no emasculate the lending public”.

While Nigerians are generally happy that action are being taken to clear the rot in the banking sector, yet some are asking: Why would Sanusi rush to take action against 5 banks when the auditing of the remaining 14 banks is still ongoing? Is Sanusi Lamido Sanusi on a vendetta against this “Delta State-born Igbo-speaking boss” and her cohorts for leading the campaign against his candidacy as the CBN Governor? Was Sanusi properly briefed on the effect his action would have on investor’s confidence on our economy and its banking system? Finally, was due process followed in sacking the bank bosses?

Read the full article here: http://elombah.com/index.php?option=com_content&view=article&id=1372:between-ijeoma-nwogwugwu-and-lamido-sanusi&catid=52:daniel-elombah&Itemid=73

the answer is that your so called super brilliant Saludo has failed. He was unable to properly supervised the banks, under his jurisdiction. Most of the bank's audited statements were doctored, they broke all proper accounting rules under the watchful eyes of Saludo.

The bank merger and consolidation were nothing but a window dressing to solve a fundamental and systemic failure in the banking sector. The stock market was a mess, and Okereke and the gangs were busy manipulating figures , like a ponzi scheme , everything has come crashing.

Sanusi Lamido should be commended, he was brave and took the bull by the horn.

I don't think the number of Bank bosses you sack is a measure of either macro or micro economic success

I will congratulate Sanusi Lamido Sanusi when at the end of this process the Nigerian Banking system and the CBN itself emerge stronger institutions.

If at the end of the process these institutions emerge weaker and wrestling with defending their credibility as well as a weakened economy . . . . everything that contributed to the process would have been a failure including the sacking of 5 bosses in one day.

Sanusi Lamido is better of a UNION LEADER than a either a Bank MD or CBN Governor.

Business is not black and white anywhere in the world.

These are immediate measures. Do you want the damage done to be irreversible before he takes action. If during the process of the auditing the remaining banks, one the 5banks already audited and found culpable goes under, I bet you'll be the first to cry foul.
Now, he has done the appropriate thing, firing their respective CEO'S and injecting fresh funds, you are here being JADED on whether he is going on a witch-hunting expedition or having a tribalistic agenda.
Criticise him after He's thoroughly finished.

The Sanusi debate is getting more and more interesting and I'm liking it. I belong to the pro-Sanusi camp and let me answer your questions:

Edoji:

Why would Sanusi rush to take action against 5 banks when the auditing of the remaining 14 banks is still ongoing?

Do you know what Erastus Akingbola did in just one day of getting hint of his impending removal? Did you read of his spirited move to stop Sanusi. The rush to Obj. Do you know he, and indeed others, could have successfully stopped Sanusi through high level politicking if he delayed the pronouncement further? Currently, according to Sanusi, there has been high-level pressure from traditional rulers, politicians, powerful businessmen on Yar'adua to tell him to reverse the sack. This is Nigeria. If he delayed the actions, he should forget about it altogether.

Is Sanusi Lamido Sanusi on a vendetta against this “Delta State-born Igbo-speaking boss” and her cohorts for leading the campaign against his candidacy as the CBN Governor?

Why was your “Delta State-born Igbo-speaking boss” campaigning against Sanusi? Did she have skeleton in her cupboard? Was she afraid?
In any case, Sanusi had not been seeing eye to eye with most of his co-CEOs before strictly on professional grounds. Sanusi is a conservative banker with zero tolerance for unethical practices. They knew him before, they knew he was a non-nonsense guy. Some even made attempt to soil his name by accusing him of demarketing while as FBN GMD.

Was Sanusi properly briefed on the effect his action would have on investor’s confidence on our economy and its banking system?

Yes, the effects are a small price to pay in the short to medium term. Compare this to the effects of the impending collapse of the system. There is hardly any economic policy that doesn't have one or two prices, especially in the short run.

Finally, was due process followed in sacking the bank bosses?

Which due process was breached?

who is the Delta state- born Igbo speaking lady?

Cecilia Ibru? She isnt Urhobo again? abi Urhobo are Igbo speaking?

tpia.:

who is the Delta state- born Igbo speaking lady?

Cecilia Ibru? She isnt Urhobo again? abi Urhobo are Igbo speaking?

i also don't know who the poster(or article writer) was referring to as "Delta state- born Igbo speaking " but since the pronoun 'she' followed and Cecilia is teh only sacked female CEO, I concluded it was Cecilia?

It has to be Cecilia, since I think she's the only female in the group.

when she became Igbo speaking is what I dont understand, unless the OP is trying to tell us something?

The lady schooled in Ilesha, so she should be Yoruba speaking as well, if she learnt the language.

but what does her grasp of languages have to do with anything?

OP can you explain?

Lets watch and see the long run effects of his so called ethical policies. I believe they would be very negative. And
Cecilia Ibru is an Onitsha woman who married an Urhobo man.

what u guys need to understand is most journalists in nigeria don't do research.

Crude Oil:

Lets watch and see the long run effects of his so called ethical policies. I believe they would be very negative. And
Cecilia Ibru is an Onitsha woman who married an Urhobo man.

she's from Onitsha?   Then why is she regarded as Urhobo?

can you shed some light on her maiden name?

Crude Oil:

Cecilia Ibru is an Onitsha woman who married an Urhobo man.

according to this interview, she said she's from Udu kingdom in Delta state. Are you saying her ancestors were Onitsha?


When, some 62 years ago, precisely, March 22, 1946, a set of twins - Cecilia and Lucy - was born into the household of Chief Edward Sido of Otota, in Delta State.'

"My father, Chief Edward Sido of Otota was the Otota of Udu Kingdom of Delta State. He passed on two years ago. He was one of the people you call ‘learned’. My dad was a barrister and solicitor of the Supreme Court of Nigeria. He was a very handsome gentleman. My mum, Chief (Mrs) Victoria Sido has always been an enlightened and astute businesswoman. I look more like my father in appearance. I took the fair skin from him. But those close to us have always said that though I’m a replica of my father, I took after my mum in many other ways. I think I took after my mum’s humane and agile nature. She was known as an enterprising woman and I watched her working to make us, her many children, comfortable and educated. My grandfather whom we used to call Papa Alaja was also very enterprising.

http://www.thenationonlineng.com/dynamicpage.asp?id=43069

I doubt if Cecilia is Igbo (married to Urhobo). Even if she is, if found guilty she should be punished accordingly. There should not be any tribal sentiments here as long as the rules are followed. If all the banks in Nigeria, but one, are manned by southerners, it simply means that southerners will be the ones affected when such restructurings take place. Moreover all the replacements of the sacked bank heads are people from the same place as the original MDs (except Union Bank, yet the new head is a southerner). If the south cornered the banking system during Soludo's regime (every other people corner stuff when their man is in charge), it is reasonable and not completely unexpected that a ''more equitable'' distribution of the bank holdings will be put in place, now that an hausa man is in charge. The quota system cycle goes round and round. Lets wait for the report on the only northern-managed bank-Unity Bank.

Nigeria: Group Plots Takeover of Five Top Banks


Omoh Gabriel and Emeka Mamah

23 March 2009

ANTI-CONSOLIDATION forces have regrouped with the hope of dismantling the structures and forcing a takeover of the top five banks in the country, Vanguard can now reveal.

The grand plan by the group is to cause panic and uncertainty in the industry and make the target banks look unsafe for depositors.

Meantime, indications emerged yesterday that the Federal Government may announce the names of a new Governor of the Central Bank (CBN) and the Auditor-General of the Federation (AGF) in April just a few weeks before the tenure of the incumbents run out.

However, the Arewa Consultative Forum (ACF) has expressed concern over what it described as the rapidly deteriorating liquidity situation in the banking industry and tasked the Central Bank (CBN) to make public information on causes of the development as well as the scale of the crisis.

Vanguard investigations revealed that the aim of the anti-consolidation forces is to cause loss of public confidence in the banking industry and compel the Federal Government to move in by injecting funds. Further, they ultimately plan to instigate government to take equity holdings in the targeted banks.

Vanguard gathered that the group at work is made up of former bank owners who lost out during the consolidation exercise, a powerful clique in the present government, and some aggrieved persons in three of the six geopolitical zones in the country who felt left out in the consolidation exercise.

Presidency sources disclosed that those who felt left out in the consolidation exercise are up in arms to recoup what they felt they lost during Obasanjo years.

Part of the plans hatched by the group is to ensure that the incumbent Governor of the Central Bank, Professor Chukwuma Soludo, does not get a second term. The plan is also to ensure that whatever gains consolidation recorded are discredited. This, it was learnt, was meant to force the President to act quickly in the matter of appointment of a successor to Soludo as they anticipate that the president's slow move may scuttle their dreams and cause the renewal of Soludo's re-appointment for a second term.

The group's second game plan is to make Nigerian banks look unsafe in the eye of the banking public. Part of the game is to spread rumours that some banks are unsound and are on the verge of collapse. They send out text messages to individuals and account holders passing wrong information on their target banks. At the moment, the group's target is one of the high-flying new generation banks where they have sent out several messages.

New CBN Gov, Auditor-General to emerge April

The tenure of the CBN Governor, Professor Chukwuma Soludo and Auditor-General of the Federation, Mr. O. R. Ejenavi from Delta State will lapse in May 2009.

Naming nominees for the top jobs, according to a presidency source, will afford the Senate ample opportunity to work on them before they assume office.

While Soludo will complete his first term in office as CBN governor by May 29, Ejenavi will be due for retirement on age grounds on May 18.

However, among those being considered for the position of CBN governor include the Minister of National Planning, Dr Shamsuddeen Usman from Kano, who was a former Finance minister and deputy governor at the apex bank; another former CBN deputy governor, Obadiah Mailafia from Nassarawa, Mallam Isa Hayatudeen from Borno, a former managing director of FSB International Bank, incumbent Managing Director of First Bank, Mallam Sanusi Lamido Sanusi, also from Kano, and Mallam Falalu Bello from Kaduna, Managing Director, Unity Bank.

But the most touted name so far is that of Mallam Isa Yuguda, the Bauchi State governor who won election on the platform of the All Nigeria peoples Party, ANPP, but defected to the ruling PDP last week. Yuguda is also an in-law of President Umaru Yar'Adua. Yuguda was also a former Managing Director of Inland Bank, a legacy bank in post-consolidation FinBank.

Past CBN governors include late Dr. Clement Isong (Akwa-Ibom), Alhaji Adamu Ciroma (Yobe); Mr. Ola Vincent (Lagos), late Alhaji Abdulkadir Ahmed (Bauchi); Mr. Paul Ogwuma (Abia), Dr. Joseph Sanusi (Ondo) and the current Professor Charles Soludo (Anambra).

It was also gathered that strict obedience to civil service rules will be observed in the appointment of a new Auditor General for the Federation going by the constitutional provision.

Section 86 Subsection 1 of the 1999 constitution states: "the Auditor-General for the Federation shall be appointed by the President on the recommendation of the Federal Civil Service Commission, subject to the confirmation of the Senate." That of the CBN may be determined by other factors, mostly political considerations which are at the pleasure of the President without recourse to the commission.

The most senior director in the office of the Auditor-General currently is Mr. Ogunsina G.F from Ekiti State who may be appointed unless there is political maneuvering. Having been a director since 2004, it may not be smooth sailing for Ogunsina because, there is another senior civil servant Mr. Osonuga T. A. from Ogun State who was promoted a director in 2007 and is being propelled by other forces to occupy the office.

It's unfortunate top 5 banks are targeted, says official

A CBN official who spoke on condition of anonymity said that it is unfortunate that top five banks are the target. The banks, he said, are sound. The CBN had mistaken in the past the ongoing move as de-marketing by competitors in the banking industry, saying it is unhealthy competition.

The group is using this means to make depositors panic and undertake massive withdrawal of funds from the targeted banks in an attempt to cause liquidity problem in the bank. In that state they hope to cause a take over by the government which may buy a stake in the bank and later sell to members of the privileged group who may be appointed in the interim into the board of the banks.

Arewa worries over liquidity problem

However, the Arewa Consultative Forum (ACF) expressed concern over what it described as the rapidly deteriorating liquidity situation in the banking industry and tasked the Central Bank (CBN) to inform the people the cause of the development as well as the scale of the crisis.

ACF said that the commercial banks must have obviously lent too much money to people who either invested them in buying stocks or in the importation of petroleum products in the country, but are unable to repay such loans.

A statement signed by the National Publicity Secretary of the Forum, Mr. Anthony Sani however blamed the CBN for enquiring "into the volume of the so-called toxic assets of the commercial banks while refusing to tell Nigerians how or why in the first place, the banks found themselves in trouble.

The statement reads "The Working Committee of the National Executive Council of the Arewa Consultative

Forum (ACF) held its meeting at its national headquarters in Kaduna on Tuesday, the 17th of March 2009. In attendance were all National officers of the ACF drawn from the 19 northern states and the Federal Capital Territory (FCT). General IBM Haruna, the Chairman presided.

"Among other things, the meeting reviewed and discussed a number of issues and other troubling developments in the country. At the end, it resolved to issue the following statement.

"The ACF deliberated on the rapidly deteriorating liquidity situation in the banking industry and observed that Nigerians are feeling increasingly frustrated by the failure of the Central Bank of Nigeria (CBN) to disclose the true the true nature and the scale of the crisis.

"Even members of the National Assembly, despite their best efforts, have been unable to get to the truth of the matter.

According to Arewa consultative forum "All that seem obvious is that our commercial banks had lent out too much money to too many people who had invested them in stocks or petroleum importation but who are now unable to pay back. Beyond that, the public has no clear idea as how or why the loans were given and on what terms."

PLEASE NL CAN U ANSWER THIS QUESTIONS FOR ME PLS(1) DOES SANUSI HAVE THE RIGHT TO SACK THIS CEO'S WHEN UNDER THE LAWS OF NIGERIA THIS PEOPLE HAVE COMMITED NO CRIME(2)EVERY MAJOR BANK IN THE U.S HAD THE SAME PROBLEM WHY DIDN'T BUSH OR OBAMA SACK THEM.(3)ALL THIS MONEY PUMPED IN THIS BANKS HOW ON EARTH WILL THE GET IT BACK(abi na free)IN OTHER COUNTRIES GOVERNMENT BOUGHT SHARES IN THOSE BANKS .(4)FOR THOSE THAT SUPPORT SANUSI ANSWER THIS IF UR MOTHER HAVE A SERIOUS HEART PROBLEM AND U LOST 500,000 WILL U RUSH FROM LAGOS TO KANO TO TELL HER THAT U LOST 500,000 I BET NOT, SO SOLUDO SAID WHAT HE HAD TO SAY, THAT EVERY THING WAS OK. WE ALL KNEW SOME BANKS HAD PROBLEM SOLUDO HAD TO SAY THE MORE MATURED THING AND THAT IS ALL IS WELL JUST LIKE THE AMERICANS DID JUST LIKE THE BRITISH DID, NL BANK OF AMERICA, CITI GROUP ,WELLS FARGO THEY R ALL IN DEBT AND MIND U EACH OF THEM IS WORTH MORE THAN OUR BANKING SECTOR AS A MATTER OF FACT EVERY MAJOR BANK WERE FORCED TO TAKE TARP FUND SO NOBODY WILL KNOW THE GOOD BANKS AND THE BAD BANKS. SANUSI ACTED IN A CHILDISH, EVERY COUNTRY IN THE WORLD GOT PROBLEMS IN DERE BANKING SECTOR. AND ONE MORE THING I DON'T TRUST THIS GUY(SANUSI).AFTER THIS CHILDISH ACTION NIGERIAN BANKS WILL FIND IT HARD TO GET MONEY FROM  INTERNATIONAL MONEY MARKET.EVEN THE AMERICAN GOVERNMENT GAVE SWISS UBS $7B THE WHOLE WORLD DIDN'T END COS OF DAT, BLOODY NONSENSE.

The banks are been prepared to be sold to the North.

Risk management my foot is this how you manage risk this guy sanusi has no brain typical of an aboki brainless nama.
He has single handedly destroyed the Nigeria banking industry and the economy has a whole now Nigerians will experience what is called credit crunch.
No more money for business.
If this is what they teach as risk management then i don't think i will complete my course anymore because this guy is a disgrace to our profession.

What he should have done silently now he has opened our yansh for the world to see.Destroyed our credibility anyway who is he trying to impress i hope it is not oyinbo people because they are laughing there socks off about how stupid he the whole affair his.
If he his so serious let him extradite the bank MD that has relocated to the UK.
Typical Nigeria mentality do something that everyone will notice then return to mallam shell.
We need to eradicate all this brain dead mallams or give them there own country.
The time is coming.
2011

NIGERIANS MUST BEWARE OF PROPAGANDA!

Why this talk about EFCC and arrest and detention?

What crimes are the bank chiefs supposed to have committed?

“The CBN accused the sacked bank executives of excessively high level of non-performing loans, attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to the bank’s credit risk management practices,” reads a news report.

Are these also cases for the EFCC now? With all the brazen stealing going on at all levels of government in Nigeria?

The CBN says the Liquidity Ratios of the banks ranged from 17.65% to 24% as at May 31, 2009, while the regulatory minimum is 25%. While don’t you help them attain the minimun threshold, as they’re not too far from it, without behaving like a bull in a China shop?

Please note that the bank chiefs are in most cases the majority owners of these banks. Ibru and Akingbola founded their banks.

These banks are not federal parastatals.

It’s true that central banks have the powers of intervention all over the world, but are sparingly used; mostly in cases when banks are not able to fulfil their obligations to their depositors and creditors. Not to do what Sanusi is presently doing, to dispossess Nigerians of their legitimate properties and award them to members of his Fulani race.

Bankers in the West who plunged the global economy into recession with their reckless investments were not arrested. Most are in fact still at their posts and have started turning their banks around.

Are we all illiterates in Nigeria?

What are banks for when not to give out loans?

Here in Europe, every of our puchases, from household entertainemnt appliances like flatscreen TVs to our cars, are financed by banks. And when you lend out so much, some of the loans will not perform. Because of the recession and the attendant high jobless rates, many European banks are in fact now saddled with hundreds of billions of euros of consumer debts, non-performing loans.

These issues of non-performing loans are just being sensationalised because the schemers know that Nigerians are gullible people.

Which banks anywhere in the world don’t have bad debts?

While I don’t want to hold brief for the debtors, that a company partly owned by Oba Otudeko, for example, has a non-performing loan at a bank does not make him an undesirable element. Businesspeople have investment in many companies, some of which fail.

It goes like this: because Mr Obi Adeyemi Abubakar is a successful businessman, Smart Alec, an entrepreneur with a brilliant idea, approaches him to co-promote his venture. And they both form a limited liability company, say A & A. If unluckily, A & A fails and ends up with a load of debt with banks, you can’t expect Mr Obi Adeyemi Abubakar to pay the debt with his other assets, which have nothing to do with the new venture.

That is the way it’s all over the world.

While Chrysler and General Motors are owing billions, their major/institutional shareholders, who also own shares in other companies cannot be expected to pay the debts of the two automakers with their other assets, which are not connected with Chrysler and General Motors.

And since these are limited liability companies, the assets of the companies are the only eligible assets for confiscation in case of loan default. That is elementary business practice which any educated Nigerian, educated enough to have access to the Internet, should know!

On the issue of Transcorp; this government has repeatedly sabotaged the company because it’s owned by Southerners. All efforts by the company’s management to improve its fortunes were sabotaged by the regulatory agencies.

And when the government finally decided to reverse the sales of Nitel to Transcorp, why has it not refunded their money (500 million US dollars), which they know was borrowed from Nigerian banks? Immediately, they reversed the sale of Nitel, they appointed a Fulani man as the MD. Now they want to sell the company piece-meal to investors because they also cannot manage it.

The true intention of Sanusi is to change the ownership structure of Nigerian banks. He says he wants to call in so-called core investors to shore up the capital basis of these banks. But there is a catch to it. He would first as a punitive measure deplete the original shareholders funds by using them to pay the non-performing loans given out by the banks. Which in essence means that they want to sell the banks for peanuts to their preferred Fulani investors.

Please let us think! Time to start resisting Fulani colonialism is now!

SANUSI is doing the very right thing at least for the time being. AKINGBOLA and CECILIA have plenty skeletons in their cupboard hence their offering the most resistance. All this attempt by some people to bring in tribal sentiments will not work.

trap203:

NIGERIANS MUST BEWARE OF PROPAGANDA!

Why this talk about EFCC and arrest and detention?

What crimes are the bank chiefs supposed to have committed?

“The CBN accused the sacked bank executives of excessively high level of non-performing loans, attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to the bank’s credit risk management practices,” reads a news report.

Are these also cases for the EFCC now? With all the brazen stealing going on at all levels of government in Nigeria?

The CBN says the Liquidity Ratios of the banks ranged from 17.65% to 24% as at May 31, 2009, while the regulatory minimum is 25%. While don’t you help them attain the minimun threshold, as they’re not too far from it, without behaving like a bull in a China shop?

Please note that the bank chiefs are in most cases the majority owners of these banks. Ibru and Akingbola founded their banks.

These banks are not federal parastatals.

It’s true that central banks have the powers of intervention all over the world, but are sparingly used; mostly in cases when banks are not able to fulfil their obligations to their depositors and creditors. Not to do what Sanusi is presently doing, to dispossess Nigerians of their legitimate properties and award them to members of his Fulani race.

Bankers in the West who plunged the global economy into recession with their reckless investments were not arrested. Most are in fact still at their posts and have started turning their banks around.

Are we all illiterates in Nigeria?

What are banks for when not to give out loans?

Here in Europe, every of our puchases, from household entertainemnt appliances like flatscreen TVs to our cars, are financed by banks. And when you lend out so much, some of the loans will not perform. Because of the recession and the attendant high jobless rates, many European banks are in fact now saddled with hundreds of billions of euros of consumer debts, non-performing loans.

These issues of non-performing loans are just being sensationalised because the schemers know that Nigerians are gullible people.

Which banks anywhere in the world don’t have bad debts?

While I don’t want to hold brief for the debtors, that a company partly owned by Oba Otudeko, for example, has a non-performing loan at a bank does not make him an undesirable element. Businesspeople have investment in many companies, some of which fail.

It goes like this: because Mr Obi Adeyemi Abubakar is a successful businessman, Smart Alec, an entrepreneur with a brilliant idea, approaches him to co-promote his venture. And they both form a limited liability company, say A & A. If unluckily, A & A fails and ends up with a load of debt with banks, you can’t expect Mr Obi Adeyemi Abubakar to pay the debt with his other assets, which have nothing to do with the new venture.

That is the way it’s all over the world.

While Chrysler and General Motors are owing billions, their major/institutional shareholders, who also own shares in other companies cannot be expected to pay the debts of the two automakers with their other assets, which are not connected with Chrysler and General Motors.

And since these are limited liability companies, the assets of the companies are the only eligible assets for confiscation in case of loan default. That is elementary business practice which any educated Nigerian, educated enough to have access to the Internet, should know!

On the issue of Transcorp; this government has repeatedly sabotaged the company because it’s owned by Southerners. All efforts by the company’s management to improve its fortunes were sabotaged by the regulatory agencies.

And when the government finally decided to reverse the sales of Nitel to Transcorp, why has it not refunded their money (500 million US dollars), which they know was borrowed from Nigerian banks? Immediately, they reversed the sale of Nitel, they appointed a Fulani man as the MD. Now they want to sell the company piece-meal to investors because they also cannot manage it.

The true intention of Sanusi is to change the ownership structure of Nigerian banks. He says he wants to call in so-called core investors to shore up the capital basis of these banks. But there is a catch to it. He would first as a punitive measure deplete the original shareholders funds by using them to pay the non-performing loans given out by the banks. Which in essence means that they want to sell the banks for peanuts to their preferred Fulani investors.

Please let us think! Time to start resisting Fulani colonialism is now!

May God bless you for this insightful write-up

Me o, I think the CBN guy, Sanusi is very rash in his decision making. I see him as someone who is out to prove a point, no matter the cost. I see him as someone who wants to be seen to have done better than his predecessor, Soludo.

Lets look at these points-

this guy has only been around just two months, conducted an audit on a few banks and sacked CEO's of these banks. I think this could have been better handled. since the issue is that of bad credits, he could have quietly called the affected bank CEO's, given then an ultimatum to do a recovery, after which he might have sacked them if they were not able to clean the books. I believe they deserve that opportunity at least for having founded the banks and made the banks what it is today(Ibru and Akingbola especially)

If he was not rash, why not complete the audit exercise of all 24 banks so that he would have sacked them all at once? the entire process would have been done one-time.

I feel he could have quietly involved the EFCC and sent letters to the debtors to pay up within a stated time frame after which he would then have published their names. we can all see what is happening in the aftermath of the publication. some of the debtors are disputing the facts stated and they really have a case. some of them had regularised or had started servicing the credits as was expected even before this shake-up. The CBN is now being made to look foolish for not doing its homework well. The CBN is now saying- "we were working with facts given to us by the banks as at May 2009". Why not reconfirm before going to press knowing fully well a lot could have happened between May and August??

Besides, its not a crime to collect or give out loans as a bank. As a matter of fact, if loans are not given out, there will be no banks as that is where they make their profit. I do not believe it is right to say "yes, I want to see some of the CEOs go to jail" as Sanusi said, because they have not committed any crime. They took a bad business decision and that was it. So until it is proven that they were beneficiaries of these credits, EFCC has no business arresting them or chasing them all over. Besides publishing the names of bank debtors without warning contravenes the key banking concept of CONFIDENTIALITY which Sanusi must very well be aware of.

Sanusi's actions has now placed these banks and the entire industry for that matter at the risk of collapse. Investor and depositor confidence has dropped and the long awaited recovery of our capital market has taken a U-TURN since this saga began.

Pls get me right- I am not saying everything was well in the industry before then. I just feel the situation could have been better and more maturely handled.

@mjbaba, u said it all. Now every sector of the economy might be expected to crash because of CBN's decision.

I guess now sack yoruba md install another yoruba md equals to installing a fulani man?? Fantastic some people here are geniuses(not) if all the banks belong to yoruba's its common sense that those affected will be yoruba's i guess he should have installed fulani md's just so he can sack them nigerians wake up not everything has to be about tribe

In politics/ business, the truth is kept secret and swept under the carpet/rug. One never knows if @ the end 1st Bank would be the only big bank remaining nor the intentions of the governor. Anywhichway, man must 2 survive.

Why would Sanusi care if 1st Bank is the biggest or smallest bank in the country? The guy is not a shareholder in the company.

naijatoday:

Why would Sanusi care if 1st Bank is the biggest or smallest bank in the country? The guy is not a shareholder in the company.

How did you know that?

The former MD of First Bank has no single stake in his own Bank? Nairalanders self.

join the wealth train, http://www.eurowideinvest.com?ref=4683

@trap203.
Weldone.

While Nigerians are coming up with all sorts of theories about the MD's sack especially the one called the northern agenda, the elites who continually want you guys to remain "the masses" are grouping together everyday to device strategies to milk this country dry.

These elites come from all tribes of the country (Yoruba, Ibos, Jukuns, Tivs, hausas, Ijaw, itsekiri, Benin etc) and they don't care about their tribes as long as they all continue to have access to obscene wealth but once they loose out, they refer to a tribal agenda and "the masses" go on all out war based on that. The bad loans belong to Hausas, Yourubas, Igbos, Edos, Itsekiris, Urhobos,Ijaws - which of these tribes are better off as a result of these bad loans.

I'm not surprised that even the newspapers can not be objective. Who owns the newspapers - are they not politicians and their friends (Sun, Thisday, Compass, Guardian, Vanguard etc) and with the journalists poor pay, you can bet on getting anything that is based on research. Infact I stopped buying newspapers a while back (except for job adverts), because of the poor quality of the reporting. You can almost sense who paid for some of the news item you read from these papers.

Nigerians write and clamour for change everytime but once one is in the offing, everybody starts getting defensive - we are like the biblical jews who cannot sense their salvation and is it any surprise that we are continually raped, tortured, brutalised and afflicted by these elites.

For me I'm giving Sanusi the benefit of doubt especially with the proofs he has. We all know something was wrong with our banks unless you don't understand basic economics. However, one thing am still waiting for and that should be the question - what is in it for Nigerians? (will inflation fall, will house rent drop, will there be jobs etc?)
I'm tired of all these increase in GDP, fall in interbank rates - all those sophisticated talk).

Like GT the guitar man, I'm asking when will we be able to live like Kings / queens?

una too get sense

there are two names , both of which are bad for what sanusi has done are bad

it  is either mischievious which i believe it is as i believe he has a hidden agenda

or

misinformed as he has destroyed the credibility of not only the nigerian banking industry but manufacturing , insurance and the stock exchange too as well as many others


then also is he a saint , if nigeria had done her research properly we would have seen that he lied about his age

a man who cannot be trusted about his age cannot be trusted with money

if he is 47 years as he says he is , and he graduated in 1981 (28 years ago ) that would have made him 19 at graduation for a 4 yr course

a hausa boy who must go to islamic sch b4 primary sch grad at 19 ?

tell me story

God save naija

Just like I have been arguing since Lamido for reasons best known to him rushed to anounce the sack of these CEOs and further plunge into details of how insolvent thier banks were and almost even declared them bankrupt,obviously,this decision does't look like it was well thought out.Now there are reports that these 5 banks might need up 1trillion due to thier indebtedness both to the CBN and other banks.The question that comes to mind is,what if they discover at the end of the audit exercise that more banks are deeply insolvent?Yes,he was able to decipher the insolvency symptoms from these five banks due to the fact that they accounted for more than 80% of the EDW and the inter-bank market but are these enough guarantees to conclude that the remaining 13 banks won't throw up another shocker?He must have underestimated the extent of the problem to think that anouncing the overhaul of the managements and injecting a mere #400bill into these 5 banks will solve the problem,I guess he now realizes that the problem goes far beyond risk management.For instance,according to report,one of the banks almost immediately exhuasted it's own share of the #420bill,it was reported that the said bank was owing CBN #60bill and other banks #70bill,one just wonders if sanusi and his team did a thorough audit of these banks before rushing out cos obviously they ve been caught unawares.Another question which many of us re not asking is where are these funds coming from?I mean this is a government that is still deadlocked with ASUU over funds talking about saving 5 privately owned banks with #1trillion.Besides,does the national assembly know about this?Is this mystery money coming from Yaradua's or Lamido's pockets?If it's from our reserves then I want to believe it's not a CBN solo project,the merits and demerits of releasing this huge amount will ve to be debated at the national assembly and this might take time,my gues is the banks will have to wait.
I believe Sanusi should ve been a bit patient and do a thorough auditing on all the 23 banks,work out less fatal modalities for solving this problem especially in these areas:formulate laws that make it almost impossible to indulge in bad corporate governance etc,root out the bad eggs in the CBN that ve hitheto given pass marks to these banks even when it was glaringly clear that they were gravely distressed,go after the crooks that have collected huge non-servicing loans from these banks without making any attempts to pay back,evaluate the actual extent of the problem so as to know how much fund to be mobilised to solve the problem and then finally, systematically depose of the management team of the failing banks.This way,his sanitization exercise will be more effective and ppl won't ve any insinuations but with his present mafia style,which makes the situation more about him, there's so much to read into it and they re very strong arguements.God help this country,Sanusi to me,does luk like he has the wit of a CBN governor,he thinks he can be successful without the same ppl he is tryin to fight.The guy is not thorough at all.Rist mgtment my ass.

People do not really understand the underground game going on in this mirage game by Sanusi and his pay masters. Sanusi cant claim to be more intelligent than Soludo. Sanusi, a graduate of Sharia Studies, wrking to Islamize the Nigerian economy. Northern core Islamist who are now in power in Nigeria only want to hijack the economy and wrestle it from the hands of the Southerners known to have done well in the sector. It is a well calculated plan.

Sanusi is just reading and interpreting a script already written by the Hausa Islamic Oligarchy of the the Northern Nigeria. It is working out for them perfectly. Already, President of the country is in Saudi Arabia meeting with the the Islamic Bank Cooperation to take over investment in the five banks. This is so sad that a particular group of Nigeria will use power in their hand for such a selfish domination in a Nation that call itself One Nigeria! So sad indeed.