PapaBrowne:

We are many that were pained by his actions. That doesn't say I know the Renaissance Professionals, at least for the sake of your argument.

Naijaking explained hereon also that he was hurt and wouldn't mind supporting the RP. That tells you we are many. There are many other anti Sanusi folks here. So yes, we are many.

No the crux of the debate was that Jarus challenged why this same RP were not critical of SLS (or even in existense) before he tackled the failing banks CEOs, saying that suggest they might be representing vested interest of those affected by the clean up. You reference a statement by RP that they are just concerned people, as you argument that they are not representing anyone.

I asked if the reference is your only source/point to rebut his accusation as it is pretty weak to quote an author's unsubstantiated position as prove that the author is right that his position is not what is accused. Basically this is similar to the way Xtians normally stupidly reference the bible as their proof that the bible is the word of God. If I don't believe the bible, why reference its assertion to make me believe the assertion I was challenging (circular arguments). Anyway, and you retorted that it is "what is known by many". And I ask which many, or do you know RP reps.

This statement above does not satisfy the crux.

PapaBrowne:

Sagamite,
Sanusi's ignored the posers raised by the RP for so long. Then Jonathan was made acting president then he knew that the game had changed.
Jonathan had their ears. TY Danjuma has their eyes. So Sanusi had no choice but to start responding.

Conjecture!

PapaBrowne:

His first response was to start a faceless replica group called Vision 4 a greater Nigeria.  

Conjecture!

You have yet to explain how the interview answers by SLS that you quoted is (1) "weak" as you claimed and [quoting you] (2):

PapaBrowne:

Sanusi himself knows that this is more than just "cheap blackmail and public smear campaign".

How does your quoted interview prove this? Or is it another conjecture?

naijaking1:

"We have told EFCC; we are not the judiciary"-papabrowne

So, Sanusi knows that it's wrong to carry on as the accusser, the prosecutor, and the judge
How times have changed, no more condenming accused CEOs to be killed by firing squad, even before investigating them?

What a new day

Where have you seen him exercise the powers of the judiciary?

The Sanusi's case is just like the Police.
If the Police comes to ur house to arrest robbers who were operating you would hail their courage and modus operandi in catchin d robbers, but if they arrested ur father in another robbery scene u would condem them as people who don't know their job.
Sanusi is only doin his job, if the MDs had nothin against them the NDIC and d whole of CBN could not have been manipulated by just one man, patriotic Nigerians would stand in d interest of d nation and abide by constituted authority, if d RP have a strong case y use d newspapers, y not send ur complaint to d NASS, Courts or are they seekin Jungle Justice, at least Sanusi offered an official reason to sack the bank chiefs, they should come up with official reasons why they shouldn't hav bin sacked.

^^^
Your analogy with the police is weak and wrong. It should be more of something like this: You're in your house, managing like other people, when the police forcefully ejected you and made you homeless, because according to them, "your house was going to be robbed very soon" While you respect the police, you still have doubts about their assertion that you needed to vacate your house because of an impending robbery only them, the police could confirm.

@naijaking ur analogy is completely out of tune wit d issue. The issue is abt perception on how they do their job and how it afects us. Its not police duty 2 eject me frm my house because of an expected robbery so ur analysis doesn't cut out well.
For d sake of ur arguement if d police ejects me nd den plant a phony family nd were able to catch d robbers I would still praise them but if I was d robber caught I can start claimin dat they were witchhuntin me because I refused 2 settle them.
Simply put on which side u fall u always hav somthin to say, Sanusi is doin his job and d RP are not hapi dat his performance on d job has afected their livelihoods.
If u think it is easy take a job with WAEC to go nd supervise exam centres.

^^^
Let me repeat the analogy I have used in the past:

We have a house that obviously need repair and maintainance, but has accomodated our family for a while. Then, comes Sanusi, he simply burnt the house down, because according to him, he saw rats and vermins that were "surely" going to make the house collapse. However, he was the only one who saw the dangerous rats, some people even doubted that rats existed in the house. However, we're currently suffering homelessness, and our complain have been met "the house would have collapsed had Sanusi come at the nick of time to save the situation"

Naijaking try analysing my scenario nd stop bringin in ur incomplete scenario.
If Sanusi burnt down d house as u imply y are d banks still runnin nd hav not gone unda.
I said if Sanusi had left d bank as they were nd even kept lendin dem money just to leave us wit d false impresion dat they were healthy d day d banks finally go unda we wld still demand Sanusis head on a platter, he has done his job d way he feels it should be done.
Where was RP wen d banks used depositors fund to manipulate their stock prices @ d stock market, if u knew d magnitude of misdemeanour these bank chiefs involved in and it afected u adversely u wld call 4 their death by firin squad too.

There goes another trigger happy Sanusi friend, firing squad on mere allegations?
This country is doomed.

Invinsible if u saw d face of d man who shot someone close to u say ur dad, while d police are puttin up d evidence 2geda includin ur bein sure dat he did it and while d case is in court won't u call 4 d person to die by firin squad, this is still based on ur accusations. So y wld u xpect dat I myself who had an insight into d mess dis bank chiefs were involved in can't call 4 wateva I think, don't 4get I'm not a part of d judiciary and the judges don't listen to either me or Sanusi, they only listen to evidence nd procedures. So u are free 2 call 4 wateva u want includin reinstatin d bank chiefs or thieves as I lik 2 cal dem

naijaking1:

^^^
Your analogy with the police is weak and wrong. It should be more of something like this: You're in your house, managing like other people, when the police forcefully ejected you and made you homeless, because according to them, "your house was going to be robbed very soon" While you respect the police, you still have doubts about their assertion that you needed to vacate your house because of an impending robbery only them, the police could confirm.

No this is a weak and wrong analogy.

A better analogy is that you're are the security officer of a national museum, when the police forcefully ejected you and made you jobless, because according to them, "there are rumours the museum is being robbed frequently of its artefacts" and you the security guard is seen driving Bentleys, Rolls Royce and ski jets. While you respect the police, you still have doubts about their assertion that you needed to vacate your job because of suspected robbery only them, the police, could confirm.

The police have grounds and rationale to act.

Using "your house" is weak and poor as the bankers are playing with the public's money, not their personal money. If nothing is done, it is the ordinary man that would lose his life savings and pension, then you will all come here and say Nigeria is a failed state. They act and give your logical and clear reasons why they did (banks begging CBN for money week in week out to stay afloat, whilst their management are buying multi-billion naira property and jets), and it is a conspiracy by Sanusi.

i think all the pro sanusi should tell us what has sls achieved since assuming cbn power, apart from the allegation and sacking of the ceo's which later worsen the banking industry as confidence is lost. then job loss that characterise post sanusi reform.
we should not be talking base on promise but what we are seen and what we can percieve.
this everybody knows is affecting other sectors and economy in general.
and some mumus are saying sanusi weldone.
Latest on sanusi's reform , to encourage lending cbn reduce rates and banks have to reduce their fixed deposit rates too.
as i talk to u and according to thisday newspaper on monday, ppl are doing capital flight and take their money to ghana and other neignbouring west african countries for better interest rates.
fix deposit rate is as low as 3% and maxi of 7% for 1billion and above.
what type of economist or cbn governor is sanusi
what makes sanusi to be the one for this job.

nigerians should wake up.


long life nigeria , long life RP

Sagamite I agree wit u because d man guardin d museum won't be happy nd can start complainin dat its because he didn't allow d police free entry wit his family dat was y he was made jobless while d policeman had intel dat d guard was involved in d robbery goin on. Sagamite thankz

@realman, SLS has spent barely one year nd he has 5yrs to run so y not allow him run his tenure history will judge him.
The bankin sector isn't d only sector in d Nigerian economy, d truth be told d failures in oda sector of d econommy nd our national life has put undue stress on our bankin sector.
If pple want 2 tak their money to hell to fix, they are free 2 do so, fixed deposits is one of d probs in our economy, y put money in fixed deposits wen this money is critically needed in d economy.

realmen:

i think all the pro sanusi should tell us what has sls achieved since assuming cbn power, apart from the allegation and sacking of the ceo's which later worsen the banking industry as confidence is lost. then job loss that characterise post sanusi reform.
we should not be talking base on promise but what we are seen and what we can percieve.
this everybody knows is affecting other sectors and economy in general.
and some mumus are saying sanusi weldone.
Latest on sanusi's reform , to encourage lending cbn reduce rates and banks have to reduce their fixed deposit rates too.
as i talk to u and according to thisday newspaper on monday, ppl are doing capital flight and take their money to ghana and other neignbouring west african countries for better interest rates.
fix deposit rate is as low as 3% and maxi of 7% for 1billion and above.
what type of economist or cbn governor is sanusi
what makes sanusi to be the one for this job.

nigerians should wake up.


long life nigeria , long life RP

You are the mumu.

Morons that open their ignorant gobs.

So you would have preferred to wait to see 5 banks collapse and lose millions of people's deposits and thousands of the 5 bank worker's jobs before your dumb arse realise what Sanusi has achieved? That is what you want to see and perceive.

I bet if the western governments had closed down the derivatives market and hundreds of bankers had lost the jobs, dumb heads like you would have said they are silly because you did not have the chance to experience the catastrophe of millions more losing their jobs.

Dimwit, central banks raise and lower interest rates at intervals to achieve economic stimulation they require. If you know NOTHING about this STFU!

What is the interest rates in US and UK at the moment? Anywhere near 3% or is it closer to 0%?

Japans interest rates was 0% for close to 10 years to achieve the economic sitmulation they wanted. Shut your ignorant mouth up and don't talk jack about what you have no clue about. Dimwit, you think you know as much as Sanusi?

marvix:

Naijaking try analysing my scenario nd stop bringin in your incomplete scenario.
If Sanusi burnt down d house as u imply y are d banks still runnin nd hav not gone unda.
I said if Sanusi had left d bank as they were nd even kept lendin dem money just to leave us wit d false impresion dat they were healthy d day d banks finally go unda we wld still demand Sanusis head on a platter, he has done his job d way he feels it should be done.
Where was RP wen d banks used depositors fund to manipulate their stock prices @ d stock market, if u knew d magnitude of misdemeanour these bank chiefs involved in and it afected u adversely u wld call 4 their death by firin squad too.

If you owned shares of Nigerian banks, if you invested to build some of these second generation banks, if you're even a lowly paid worker in a Nigerian bank as we speak, you'll understand that the "house has been burnt down"
Please don't go repeating Sanusi's allegation, because almost 9 months into this diatribe, nobody has been convicted in any court of law, but many have been convicted in the press during Sanusi's many road shows.

Don't talk about "stock manipulation and misdemeanour of bank CEOs", because thses are still merely allegations, and it's been shown that the man had a personal fish to fry with these people.
Let's wait for an independent body, ie the courts to thoroughly examine these cases and tell us whether the CEOs were the criminals or Sanusi was the criminal who has used his sacred big offices to settle small personal differences.

Just wait and see

How Sanusi Allegedly Set Banks MDs Up
By Onyedika Agbedo
AGAINST the backdrop of the recent sacking of three more bank MDs, by the Central Bank of Nigeria (CBN), bringing the number of banks whose managing and executive directors have been sacked to eight, analysts have continued to look at the critical reasons behind the controversial 'reforms' by the apex bank.
Industry sources alleged that most of the banks affected by the reforms were wittingly or unwittingly set up for the circumstances that eventually led to the sack of their directors.
For instance, it is being alleged that the CBN's deliberate and sudden switch from Expanded Discount Window (EDW) to Inter-bank market signalled the beginning of erosion of liquidity and stability in the banking sector.
Sources alleged that through a text message on June 16, this year, the CBN Governor, Mallam Sanusi Lamido Sanusi had directed nine banks managing directors to proceed to Inter-bank henceforth "in view of the closure of EDW."
According to the source, banks going to EDW did not mean they had problems. "It was a trading window popularly called arbitraging in money market. It is not a liquidity window. At EDW, banks borrow at 10 per cent interest and lend at between 14 per cent and above," claimed the source.
The Guardian also gathered that 23 of the 24 banks were at the EDW with Standard Chartered Bank being the only exception and that out of the 23 banks, 11 were regular at the EDW.
At the time of CBN's first intervention, FinBank, for instance, The Guardian learnt, had taken N50 billion which it placed in other banks. It had Inter-bank placements with other banks totalling N45 billion. This was the same setting for Union and Intercontinental Banks.
"When Sanusi shut EDW without notice, the banks were predictably caught in-between and naturally requested enough time to enable them to recover the money they had already lent out to other banks. The CBN refused on the grounds that the window was inappropriate.
"Sanusi instead directed them to go to 'Inter-bank' and went ahead to introduce 'Guaranteed Inter-bank'. The banks were now forced to patronise this in compliance with his text message of June 16."
The source said: " If Sanusi had given the banks the shortest loan tenures of 90 days notice (but did not because he had already made up his mind to undermine them) these monies lent out would have come back. The contradictions in the debtors' list showed that the money was back between June, July and August whereas CBN cut off date was May 31, this year. This was the major reason why CBN's debtors list was so controversial."

naijaking1:

If you owned shares of Nigerian banks, if you invested to build some of these second generation banks, if you're even a lowly paid worker in a Nigerian bank as we speak, you'll understand that the "house has been burnt down"
Please don't go repeating Sanusi's allegation, because almost 9 months into this diatribe, nobody has been convicted in any court of law, but many have been convicted in the press during Sanusi's many road shows.

And Sanusi is responsible for the slowness of Nigeria's justice system.

naijaking1:

Don't talk about "stock manipulation and misdemeanour of bank CEOs", because thses are still merely allegations, and it's been shown that the man had a personal fish to fry with these people. Let's wait for an independent body, ie the courts to thoroughly examine these cases and tell us whether the CEOs were the criminals or Sanusi was the criminal who has used his sacred big offices to settle small personal differences.

Just wait and see

It has been shown where? [This arguments are becoming unbelievable]

So you find the charges against the bank CEOs are merely allegations, but the red-coded are not merely allegations?

realmen:

How Sanusi Allegedly Set Banks MDs Up
By Onyedika Agbedo
AGAINST the backdrop of the recent sacking of three more bank MDs, by the Central Bank of Nigeria (CBN), bringing the number of banks whose managing and executive directors have been sacked to eight, analysts have continued to look at the critical reasons behind the controversial 'reforms' by the apex bank.
Industry sources alleged that most of the banks affected by the reforms were wittingly or unwittingly set up for the circumstances that eventually led to the sack of their directors.
For instance, it is being alleged that the CBN's deliberate and sudden switch from Expanded Discount Window (EDW) to Inter-bank market signalled the beginning of erosion of liquidity and stability in the banking sector.
Sources alleged that through a text message on June 16, this year, the CBN Governor, Mallam Sanusi Lamido Sanusi had directed nine banks managing directors to proceed to Inter-bank henceforth "in view of the closure of EDW."
According to the source, banks going to EDW did not mean they had problems. "It was a trading window popularly called arbitraging in money market. It is not a liquidity window. At EDW, banks borrow at 10 per cent interest and lend at between 14 per cent and above," claimed the source.
The Guardian also gathered that 23 of the 24 banks were at the EDW with Standard Chartered Bank being the only exception and that out of the 23 banks, 11 were regular at the EDW.
At the time of CBN's first intervention, FinBank, for instance, The Guardian learnt, had taken N50 billion which it placed in other banks. It had Inter-bank placements with other banks totalling N45 billion. This was the same setting for Union and Intercontinental Banks.
"When Sanusi shut EDW without notice, the banks were predictably caught in-between and naturally requested enough time to enable them to recover the money they had already lent out to other banks. The CBN refused on the grounds that the window was inappropriate.
"Sanusi instead directed them to go to 'Inter-bank' and went ahead to introduce 'Guaranteed Inter-bank'. The banks were now forced to patronise this in compliance with his text message of June 16."
The source said: " If Sanusi had given the banks the shortest loan tenures of 90 days notice (but did not because he had already made up his mind to undermine them) these monies lent out would have come back. The contradictions in the debtors' list showed that the money was back between June, July and August whereas CBN cut off date was May 31, this year. This was the major reason why CBN's debtors list was so controversial."

What utter rubbish!

The simplest answer to this without any long thing is that: Financial arrangements normally have legal terms and conditions. If they feel Sanusi broke the terms and conditions that led them into difficulty, then they should have gone to court. If he did not break any t&c but acted lawfully and the banks were still in liquidity problems/difficulty, then the bank management have mismanaged the bank.

That is the no long thing answer.

The long one is: THEY WERE GIVING UNSECURED LOANS TO THEMSELVES AND FRIENDS. The repayments on this loans were not forthcoming and they were going to CBN for bailouts.

realmen:


The source said: " If Sanusi had given the banks the shortest loan tenures of 90 days notice (but did not because he had already made up his mind to undermine them) these monies lent out would have come back. The contradictions in the debtors' list showed that the money was back between June, July and August whereas CBN cut off date was May 31, this year. This was the major reason why CBN's debtors list was so controversial."

Sanusi couldn't wait for 90 days for the banks to update their books, but he wants us to wait for 10 years to start seeing the "benefits" of his revolution

It irritating the kind of nonsense that people spew these days.

realmen:

How Sanusi Allegedly Set Banks MDs Up
By Onyedika Agbedo
AGAINST the backdrop of the recent sacking of three more bank MDs, by the Central Bank of Nigeria (CBN), bringing the number of banks whose managing and executive directors have been sacked to eight, analysts have continued to look at the critical reasons behind the controversial 'reforms' by the apex bank.
Industry sources alleged that most of the banks affected by the reforms were wittingly or unwittingly set up for the circumstances that eventually led to the sack of their directors.
For instance, it is being alleged that the CBN's deliberate and sudden switch from Expanded Discount Window (EDW) to Inter-bank market signalled the beginning of erosion of liquidity and stability in the banking sector.

So it was the EDW that led to erosion of capital, and not the huge non-performin loan portfolios, nor being over exposed to the stock market and Oil & Gas ?
Was the EDW not created because some banks were already in trouble?

Sources alleged that through a text message on June 16, this year, the CBN Governor, Mallam Sanusi Lamido Sanusi had directed nine banks managing directors to proceed to Inter-bank henceforth "in view of the closure of EDW."

Unnamed sources making allegations BTW the CBN sends circulars and not text messages.

According to the source, banks going to EDW did not mean they had problems. "It was a trading window popularly called arbitraging in money market. It is not a liquidity window. At EDW, banks borrow at 10 per cent interest and lend at between 14 per cent and above," claimed the source.

The person should go and read the terms of the EDW, under which arbitrage was illegal and punishable by withdrawal of the bank's license. Patronizing the EDw was admittance of illiquidity (be it short or long term).

The Guardian also gathered that 23 of the 24 banks were at the EDW with Standard Chartered Bank being the only exception and that out of the 23 banks, 11 were regular at the EDW.
At the time of CBN's first intervention, FinBank, for instance, The Guardian learnt, had taken N50 billion which it placed in other banks. It had Inter-bank placements with other banks totalling N45 billion. This was the same setting for Union and Intercontinental Banks.

Borrowing from the EDW is not a crime, but borrowing without repayment was symptomatic of illiquidity and insolvency

"When Sanusi shut EDW without notice, the banks were predictably caught in-between and naturally requested enough time to enable them to recover the money they had already lent out to other banks. The CBN refused on the grounds that the window was inappropriate.

The EDW was being abused and was appropriately shut. At no point did the money lent out become irrecoverable. The transactions were simply reborn in the interbank market.

"Sanusi instead directed them to go to 'Inter-bank' and went ahead to introduce 'Guaranteed Inter-bank'. The banks were now forced to patronise this in compliance with his text message of June 16."
The source said: " If Sanusi had given the banks the shortest loan tenures of 90 days notice (but did not because he had already made up his mind to undermine them) these monies lent out would have come back. The contradictions in the debtors' list showed that the money was back between June, July and August whereas CBN cut off date was May 31, this year. This was the major reason why CBN's debtors list was so controversial."

This is just nonsense and shows how clueless the author is.
The interbank loans were given to other banks and not customers. The banks in question were not owed money, but rather were the ones owing money. Sanusi actually saved their behinds by injecting the funds he did allowing them to meet their obligations to other banks.
The debtors list is totally unrelated, and simply list those loans that the bank gave out to customers that were now in default. Those loans needed to be provision for and accounted for a substantial part of the capital erosion. The CBN was simply trying to help the banks recover some of the loans, so that there will be less non-performing loans to provision for and thus less capital eroded.

The banks had non-performing loans and failed to declare them in their accounts as required by SAS 10.

@papbrowne, naijaking1 and co
Its nice to know where someone is coming from, so as to better understand his motives and what he is aiming for.
You have admitted that your main reason for criticizing Sanusi is because his action cost you money, and has little to nothing to do with if his actions were in the best interest of Nigeria and Nigerian. Show consideration for national interest is an after thought.
I guess people like you would criticizing someone who fixes Nigeria's power problem, if his actions cost you your investment in the generator and/or diesel business.
You would condemn someone who fixes the railroad, if he cost you your investment in the trailer business
You would hate anyone who fixes the police force because you would lose access to stolen goods.

I think the RP are also coming from that same background. Birds of a feather . . . . .

biina:

@papbrowne, naijaking1 and co
Its nice to know where someone is coming from, so as to better understand his motives and what he is aiming for.
You have admitted that your main reason for criticizing Sanusi is because his action cost you money, and has little to nothing to do with if his actions were in the best interest of Nigeria and Nigerian. Show consideration for national interest is an after thought.
I guess people like you would criticizing someone who fixes Nigeria's power problem, if his actions cost you your investment in the generator and/or diesel business.
You would condemn someone who fixes the railroad, if he cost you your investment in the trailer business
You would hate anyone who fixes the police force because you would lose access to stolen goods.
I think the RP are also coming from that same background. Birds of a feather . . . . .

You can do better than these convoluted examples with facilities that didn't work. Why is it difficult for you to agree that the banks in Nigeria were working better than before Sanusi came in. Remember my "rats in the house" analogy? Those rats were only seen by Sanusi, and Sanusi alone, no other person saw the rats given as a reason for burning down the whole house. Infact, the RP group actually believe that no rat existed in the first place. They always said "if it aint broke, don't fix it" You've neglected to mention the area where Sanusi's little personality issues with Akingbola and Ibru might have been the main reason for his irrational behaviours towards them, their banks, and the closely connected economy as a whole. He is fixing what's not broken, and making excuses as he goes along.

There is nothing Sanusi will achieve in this country. The controversies he has stired will last him a lifetime and more. Its easy to break down empires, spoiling what has taken 20 years to build can take only one day! Sanusi can only end up in the dust bin of history, he is now damaged goods.

Banks created thousands of jobs, stimulated the economy, envigurated the property market by buying up choice locations and keeping the sector mobile, the building industry were not left out, designing and building magnificent edifices that will last for generations to come, attracted the ethswhile elusive foreign capital, created subsidiaries throughout the whole sectors, rolled out ATMs, Zenith even formed Visafone, some banks were buying up other banks in the continent and in the world. When last have we had it so good?

Then on the morning of 14th August, one man appeared and told us that all these were done in bad faith, while forgeting that all the while, nothing was working in the banks before OBJ came to power. He said there were insider abuses,(but he forgot his own bank were bleeding billions in depositors funds, writing off more than 46 billion and he didn't commit any crime) he has been flying accusations around, accusing some of buying pivate jets and hiding same in her handbag. Accusing some of owning houses (how can Akingbola not own good houses after working as an executive for more than 20 years, abi he dey use I'm money pursue woman like Sanusi?) They don't even know how many houses Atuche owns, small yahoo boys now ride Hummers and buy corner plots in city junctions for your information. How have we arrived here? How have we started to witchunt our best brains? Is it a crime to borrow to expand your business? Is it a crime to be rich if you have worked for all your life and attained great heights? Banks lose money from giving loans, but so do other companies. Business is full of risks, and many do occur.

I see Sanusi as someone who have made a mistake in judgement. His arrest and detention of these big guns is haunting him and he desperately needs justification for his actions, he is now grasping at straws just to keep afloat. Bankers are now being sacked, branches are being closed, people have been brutally pushed away, terrorised by EFCC while the real Yahoo boys are operating in a free world, these ones can flaunt their billions, some are as young as 18 years. Posterity will place Sanusi where he belongs, in the dust bin!

naijaking1:

You can do better than these convoluted examples with facilities that didn't work. Why is it difficult for you to agree that the banks in Nigeria were working better than before Sanusi came in. Remember my "rats in the house" analogy? Those rats were only seen by Sanusi, and Sanusi alone, no other person saw the rats given as a reason for burning down the whole house. Infact, the RP group actually believe that no rat existed in the first place. They always said "if it aint broke, don't fix it" You've neglected to mention the area where Sanusi's little personality issues with Akingbola and Ibru might have been the main reason for his irrational behaviours towards them, their banks, and the closely connected economy as a whole. He is fixing what's not broken, and making excuses as he goes along.

Yes the rats were only seen by Sanusi yet
- Soludo created the EDW stating that some banks were having liquidity problems
- The MD of NDIC, after consulting with SEC, wrote a letter to the CBN to investigate the manipulation of stocks and exposure to the capital markets
- The finance minister followed up on same letter
- that no one has come up with counter figures that show that the 'rats' were fictitious

The banks were in trouble before Sanusi took office. Sanusi wasn't in office in 2008, when the banks became over exposed to the stock market and the market crashed, were exposed to oil & gas and the oil prices fell, or when their numerous debtors were defaulting on loans. All Sanusi did was make the banks reflect their true pictures in their statements, and those who were insolvent had funds injected to prop them up on the short term and their executives fired.

Now if you feel Sanusi should have left the banks with the false accounts and/or left the executives who had mismanaged the banks into insolvency (and were dragging the sector down with them via interbank lending), then please say so.

As to personality issues between Sanusi and the sacked CEOs, there is no evidence to suggest such. The de-marketing that was alluded to in the RP post started in 2008, before Sanusi became MD of FBN, and so he couldn't have been the instigator and hence had no reason to apologize to anyone over it. Yet, what was claimed to be de-marketing actually turned out to be true as Soludo created the EDW a few weeks later to bail out same banks. Soludo's efforts failed primarily because he left those executives in office and was simply pumping water into a leaking tank.

nigeria and alphabet soup ashewo 'organizations'

Thank u. Naijaking1 and invisible papabrowne and co. It goes way beyond witch-hunting. U see all this nefarious activities by this so called islamic goons. Now this bow-tie sharia son-of-a-gun come brandishing what he felt is the best alternative for Nigeria.

Why is it everytime u have a muslim in public positions b it president, governor or others, they always want to institutionalise their dark age philosophy of cloak and dagger?

Why is it that they(muslims) always have this inferiority complex to compete where there is no competition?

Why is it that religion can not b successfully practised personally until it is turned to a national carrier? We all know examples of places this practise is failling- iran and all. And how devil steps in as a country starts practising such.

So becos sharia banking has zero interest rate, is it that the current banking system can not b adjusted to zero and vary as money works and economy becomes better?

So this sharia banking is it that it would b always zero interest and when economy starts getting better and better it would still b zero? Pretty dumb fit only for muhammad and his goons.

Pls NLanders on this thread help me out
Pls this is not OP as it is knitted with subject

How many times have RP been caught telling porkie in the past? Why should we believe them now? Now the story is back to "Northern Agenda". Sanusi traducers need to make their mind up about their argument. RP should also feel free to reveal their identities instead of hiding behind their PC to carry out hatchet jobs and feeding on peoples ethnic fears.

Dominoifet:

Thank u.  Naijaking1 and invisible papabrowne and co. It goes way beyond witch-hunting. U see all this nefarious activities by this so called islamic goons. Now this bow-tie sharia son-of-a-gun come brandishing what he felt is the best alternative for Nigeria.

Why is it everytime u have a muslim in public positions b it president, governor or others, they always want to institutionalise their dark age philosophy of cloak and dagger?

Why is it that they(muslims) always have this inferiority complex to compete where there is no competition?

Why is it that religion can not b successfully practised personally until it is turned to a national carrier? We all know examples of places this practise is failling- iran and all. And how devil steps in as a country starts practising such.

So becos sharia banking has zero interest rate, is it that the current banking system can not b adjusted to zero and vary as money works and economy becomes better?

So this sharia banking is it that it would b always zero interest and when economy starts getting better and better it would still b zero? Pretty dumb fit only for muhammad and his goons.

Pls NLanders on this thread help me out
Pls this is not OP as it is knitted with subject

Thanks for exhibiting your religious bigotry and intolerance.
BTW Islamic banking must have been introduced by 'Alhaji' Soludo with the licensing of Jaiz Bank International  

^ thanks for telling me I'll BB. Kinda busy now

naijaking1:

You can do better than these convoluted examples with facilities that didn't work. Why is it difficult for you to agree that the banks in Nigeria were working better than before Sanusi came in. Remember my "rats in the house" analogy? Those rats were only seen by Sanusi, and Sanusi alone, no other person saw the rats given as a reason for burning down the whole house. Infact, the RP group actually believe that no rat existed in the first place. They always said "if it aint broke, don't fix it" You've neglected to mention the area where Sanusi's little personality issues with Akingbola and Ibru might have been the main reason for his irrational behaviours towards them, their banks, and the closely connected economy as a whole. He is fixing what's not broken, and making excuses as he goes along.

invisible!:

There is nothing Sanusi will achieve in this country. The controversies he has stired will last him a lifetime and more. Its easy to break down empires, spoiling what has taken 20 years to build can take only one day! Sanusi can only end up in the dust bin of history, he is now damaged goods.
         
Banks created thousands of jobs, stimulated the economy, envigurated the property market by buying up choice locations and keeping the sector mobile, the building industry were not left out, designing and building magnificent edifices that will last for generations to come, attracted the ethswhile elusive foreign capital, created subsidiaries throughout the whole sectors, rolled out ATMs, Zenith even formed Visafone, some banks were buying up other banks in the continent and in the world. When last have we had it so good?

Having it good? You mean the way the West were having it good before the pain came from irresponsible banking practices? The way they fuelled every poor man to live beyond their means until the credit crunch arrived?

Can some of you really apply brains to see something in a wider perspective?

I hope people like you are not placed in positions of responsibility, until you see the collapse of banks on front pages before you smell a rot. As long as they are living and showing ostentatiousness, you believe everything is working fine.

THERE ARE REASONS THE BANKING INDUSTRY HAS REGULATORY PRACTICES TO MANAGE RISKS. THOSE PRACTISES HAVE TO BE ENFORCED TO PROTECT THE PUBLIC'S MONEY.

If executives are ignoring the practices for personal gain and wealth accummulation, then they should be removed.

invisible!:

Then on the morning of 14th August, one man appeared and told us that all these were done in bad faith, while forgeting that all the while, nothing was working in the banks before OBJ came to power. He said there were insider abuses,(but he forgot his own bank were bleeding billions in depositors funds, writing off more than 46 billion and he didn't commit any crime) he has been flying accusations around, accusing some of buying pivate jets and hiding same in her handbag. Accusing some of owning houses (how can Akingbola not own good houses after working as an executive for more than 20 years, abi he dey use I'm money pursue woman like Sanusi?) They don't even know how many houses Atuche owns, small yahoo boys now ride Hummers and buy corner plots in city junctions for your information. How have we arrived here? How have we started to witchunt our best brains? Is it a crime to borrow to expand your business? Is it a crime to be rich if you have worked for all your life and attained great heights? Banks lose money from giving loans, but so do other companies. Business is full of risks, and many do occur.

Was First Bank running to anyone to stay affloat?

Did thinking of that ever come to your mind?

So it is OK to award yourself unsecured loans from depositors funds without following your internal risk management process?

Confusion in the banks: CBN struggles to justify its action
Business, Headlines Aug 22, 2009
*Action hasty
*Too many loose ends
*Raises credibility and integrity question
*Debtors fault CBN
*Banks puncture bank’s EW and non performing loan argument
By Omoh Gabriel, Business Editor
THE Central Bank of Nigeria appears to be developing cold feet over the war it declared on bank debtors. On Thursday evening, the bank hinted reporters in Abuja that it was about issuing another statement which they suspected was going to be the second list of debtors the apex bank had vowed to release, only for the reporters to be told that the CBN had changed its mind and that the statement was no longer coming.
The CBN’s action on the five banks has generated reactions, claims and counter claims. The apex bank on Thursday took notice of claims by some individuals on the published list of debtors/defaulters that the figures posted against them were not correct and threatened to go to court.
The bank admitted typographical errors in the titles of some government officials and some companies, saying “The general public and all concerned should note that the list published is as at May 31, 2009 and if any of the defaulters/debtors have made any repayments after that date, they should sort it out with the relevant bank.

“The title “accountant general” under Intercontinental Bank Plc list, should read “accountant general of Zamfara State” while the name “Delta State Government” under the Oceanic Bank list, should read “Delta Steel Company.” The Central Bank of Nigeria regrets any inconvenience caused as a result of the typographical errors mentioned. Meanwhile, list of other debtors/defaulters is being compiled and will be published on an on-going basis.”
Bankers speaking on condition that they would not be named, Friday, took exception to the CBN excuse of publishing bank related figures of May in August when it had made it mandatory for banks to render daily returns of their transactions. The CBN action, they said, meant that it was admitting to Nigerians, that there exists a high level of inefficiency in the apex bank.
They said the CBN had no excuse whatsoever to release such a shoddy list. Bankers also faulted the CBN excuse of the five banks using the expanded window for funding arguing that the window was encouraged by the CBN for banks in need of funding to utilise as it was far cheaper for them to do so because the cost of fund offered by CBN was at eight per cent while inter bank funds was in the region of 12-15 per cent. One source said the CBN used what it created as a trap for the banks.
Sources cited the case of Union Bank with a huge deposit base and non performing loans of N71 billion, saying the bank has the capacity to absorb the loan loss provision. “The CBN has not helped matters by its own admission of errors in its published list of debtors. Its statement is an admission that all is not well in the way and manner it has gone about the entire exercise,”one source said.
Sacked officials of Intercontinental Bank said the bank was never subjected to any special examination and that the special examination was only being conducted now by the CBN. Sources in Oceanic Bank made a similar allegation against the CBN. “The haste with which the CBN conducted the exercise has left so much room for questions and has cast doubt on the real intention of both the Federal Government and the CBN”, sources said.
The affected banks executives are raising fundamental questions such as: Why and how did CBN arrive at five banks? Why did it not complete the examination of all the banks before sanctioning some banks? Does the injection of N100 billion into a bank with capitalisation of over N500 billion justify the take over of the bank?
What is the value of the injection vis a vis the total value of the bank to entitle the CBN to appoint the MDs and other directors of the bank? Did the CBN approve these banks financials all these past years? If yes, what has changed? Were the non-performing accounts put in the books in last three months?
Why did CBN take this decision without regard to the interest of the shareholders? Why should CBN not allow the shareholders to appoint and or remove their directors? How can an MD single handedly appointed by CBN governor serve the interest of the shareholders and not the interest of the man who appointed them?
Debt profiles
Bankers alleged that the sacked managing directors were not given any opportunity to explain their actions and the debt profiles in their books after the examination. If they were given such opportunity, perhaps the misrepresentation of facts contained in the published list of debtors and the amounts they are alleged to be owing the banks would not have risen.
Besides, if the CBN had asked its appointed officers in the bank to compile and up date the list of debtors, the situation would have been different.
The affected banks are also asking the CBN to publish the bad loans or non performing loans of all banks including those that are cleared so that the public can assess how much of this is either to direct loans to government or indirect loans to government through their contractors or other government agencies like PPPMA.
Disagreement at the board before the announcement Bankers said the CBN action on the five banks did not actually enjoy the total backing of the apex bank’s helmsmen, which may have led to disciplinary action against those who opposed the move.

Some of the sacked banks CEOs
As operators and regulators begin to take stock of the tsunami which is bound to change the way big ticket lending and borrowing is done in the industry, unknown developments that characterized the shake-out are beginning to emerge. A sharp disagreement was said to have occurred during meetings called to agree on the action which saw the five bank CEO’s lose their positions.
It was gathered that some of the board members opposed the move, the timing and motive behind it. But with a done-deal stamp on the decision, the said top officials were only playing with their jobs for daring to oppose the move. The next move was their dismissal from their respective positions to which they were appointed earlier in the year. The CBN remained silent on the reason for their removal.
Posers are being raised on whether the apex bank followed the due process in effecting its decisions with many concluding that it was a rush job. Most of the figures released by the Central Bank as debts owed the banks have continued to be faulted. In some cases, others described as non-performing have been discovered to be actually performing although CBN rose sharply on Friday to say only it (CBN) could determine whether a loan is performing or not. Another critical issue is that of one of the banks which has insisted that the CBN actually okayed its accounts only to turn around to do a u-turn.
Available data on the published accounts of the banks from industry study as at March 2009 show an insight into developments in the industry. These data indicate that18 out of the 24 banks operating in the country had a total loan portfolio of N4.4595 trillion.
Total deposit of the banks was N8.0673 trillion. Of the N4.4595 trillion loans and advances in the18 banks four of the sanctioned banks, Union Bank, Intercontinental, Oceanic and Afribank carried N1.3175 trillion of the loans representing 30 per cent of the total loans and advances granted by the18 banks. While the total non performing loans of the 18 banks stood at N239.4 billion out side the margin loans, the four banks’ non performing loans was N 115.3b representing about 45 per cent of non performing loans in the 18 banks.

State of the banks as reported by Afrinvest in March 2009
Afribank: Afriinvest, an institutional investor said, based on March 2008 financial statements, Afribank reported liquidity and capital adequacy levels that indicated emerging strains from rapid growth between 2007 and 2008. By more stringent measures, the bank held barely 11.2 per cent in capital for its gross asset book, with only 15 per cent of total assets being available as cash and FGN securities. Loans constituted 33 per cent of total assets and the group reported N6.3bn in short term equities exposure.
In the opinion of the institutional investor this represented a commitment of about 15.9 per cent of total shareholders funds as at date. Given an inflow of almost N105 billion in new capital during the first half of 2008, expectations are that liquidity and capital adequacy metrics will have improved substantially. Afribank, it said, reported a 57 per cent increase in gross loans, to N116.1 billion in March 2008.
Non performing loans are high, at 13.7 per cent of total loans, albeit having come down from 17.6 per cent in the previous year. “Given the extent of industry-wide loan growth in 2008, and Afribank’s post-recapitalisation drive to increase market share, we note our expectations that these levels of loan performance will not have improved significantly during 2008/2009.
Indeed, given softening economic conditions, and significant volatility across the market for much of underlying customer business, we see little scope for loan quality improvements at the bank, barring major write-downs off capital raised in 2007, and provisions off 2008/2009 earnings”, it said, adding, that Afribank is largely deposit funded, mainly by short-term demand deposits.
It noted a significant skewing of the deposit book towards shorter term liabilities, less than one month, during 2008, matching more closely with asset creation, with historically no less than 80.0 per cent of loans having maturities less than a month. While new capital inflows in 2008 provided an important new source of long-term funding for operations (as well as short-term trading liquidity), we note the bank’s vulnerability, in line with industry standard, to short-term deposit funding, in an intensely competitive market space.
Intercontinental: Afriinvest said Intercontinental was reporting 77.8 per cent of its February 2008 total assets as carrying some degree of risk. Its words: “While loans constituted only 32.8 per cent of total assets, including on-balance sheet money market placements and other assets, excluding cash and FGN securities, as being with some degree of risk, we would estimate shareholders capital to be at 18.5 per cent of total risk assets.
From a liquidity standpoint, assuming a more stringent characterisation of what constitutes liquid assets, we would estimate that 19.4 per cent of February 2008 total assets were liquid mainly cash and FGN securities, equivalent to 25.6 per cent of total deposits.”
Intercontinental Bank reported a N 456.3 billion loan book in February 2008. Historical report non performing loan ratios have come down significantly, to 3.6 per cent of gross loans in February 2008. Management reports exposure mainly to corporate, commercial, real estate and public sector lending, in approximate order of magnitude. From a sectoral perspective, our understanding is that manufacturing and telecoms constitute the largest sources of loan book exposure for the bank.

Mallam Sanusi Lamido Central Bank Governor (right) and Babatunde Lemo deputy Governor, Operations, Central Bank of Nigeria at the press briefing on the managerial restructuring and developments of some Nigerian Commercial banks.
Deposit liabilities constituted 89.3 per cent of total non-capital funding for the bank. 73.4 per cent of these deposits in February 2008 were maturing in less than 1 month. As of February 2008, current accounts and fixed term deposits accounted for 92.7 per cent of deposits. We note that other than foreign credit lines for settling off-balance sheet, fully funded contingent liability transactions, the major conspicuous potential source of the reported slow-down in deposit growth would be from customer current and fixed-deposit accounts. Intercontinental reported no major on-balance sheet structured financing from wholesale sources of funding.
Union Bank: Missing out on the window of opportunity to conduct a major capital raise over the last boom cycle, Union Bank reported operating performance in 2008 that adhered to its historical culture of slow, steady, incremental advancement. While much of the market saw volumes at least double in 2007/2008, capital constraints at Union Bank, and a protracted leadership transfer process ensured more moderate growth levels. On this basis, the bank was largely absent from much of the more aggressive risk asset creation that happened over the last 24 months.
Overall, however, we note that as a large bank in its own right, Union Bank is widely exposed to weakening macroeconomic conditions, perhaps more so on account of its less buoyant capital base, and less nimble operating culture. Capital adequacy levels suggest a bank with thin buffers relative to gross risk exposure levels, when measured by our more aggressive definitions of risk.
We note, however, that some of the biggest risks that the bank is exposed to are systemic in nature, with N467.9 billion being outstanding as amounts due to Union Bank from other banks and financial institutions as of March 2008, equivalent to almost 4.0x shareholders capital. These placements represented 41.4 per cent of the bank’s total asset book.
However, placements with non-bank financial institutions amounted to N110.5 billion of this amount. Gross loans came up to no more than 25.9 per cent of assets, with 12.5 per cent of assets being core liquid instruments: such as cash and FGN securities.
As a major net liquidity provider to domestic banks, Union Bank leverages its legacy retail franchise to benefit from interest rate arbitrage opportunities at the short end of the market. With a historical legacy of poor loan performance, and hence less active as a mainstream lender in recent years, the bank appears to have missed out as much on the opportunities as on the volatility that characterised market performance in 2008. Loan quality metrics continue to be troubling at Union Bank.
By our assessment, non performing loan as a share of total loans grew to 24.5 per cent as at March 2008, from 18.7 per cent in the previous year. These are levels significantly higher than any bank within our coverage, and amount to no less than N71.5 billion in absolute value of troubled loans at the bank, equivalent to 60.0 per cent of the banks total shareholders funds. Non performing loans levels have been high historically at the bank, but gross exposure numbers saw a major jump, 109.4 per cent in 2007/2008, within a loan book that grew by barely 60.0 period over the same period.
Dependent on a mix of short term deposits and institutional financing, foreign bank credit lines for funding its operations, Union Bank’s March 2008 balance sheet appeared at once vulnerable to the global financial crisis, with N120.1 billion in amounts due to banks outside Nigeria, and to the domestic liquidity crisis, with N616billion in deposits maturing in less than one month.
These two funding sources were the two major components of the bank’s book of liabilities, at 12.0 per cent and 61.4 per cent respectively. We note that retaining customer deposits, and diversifying away from these two major sources of funding will be a major challenge for the bank in 2009, along with the continuing struggle with credit quality, operational efficiency, innovation and market share retention.” It was gathered that Union Bank had planned twice to raise funds from the capital market but was denied access. It had also planned to sell part of its shares to foreign investors and was not allowed to.
Oceanic Bank: R.Ajibola Oluyede of TRLPLAW, speaking on the position of Oceanic Bank said “Our client is being punished because of its heavy support for the importation of petroleum products, which is an essential commodity, and without such support could have become scarce and result in political upheaval. To ensure that the country has uninterrupted supply of petroleum products banks finance importers of petroleum products. These importers are licensed and duly approved by PPPRA an agency of the government, which issues importers with import quotas based on which it pays subsidies on imports of kerosene and petrol.
Based on amounts advised by Oceanic Bank’s customers, over N20 billion is yet to be paid by PPPRA to these customers’ accounts with Oceanic Bank in respect of LCs dating as far back as December 2008. The bank has fully paid the overseas suppliers whilst PPPRA is over eight months in arrears in reimbursing the bank. There was a letter from the Association of Major Marketers of Petroleum Products to the PPPRA advertised at page 16 of The Punch newspaper of Tuesday, August 18, 2009 which confirms that PPPRA owes members of their association over N70 billion. How are the banks that have in good faith supported the government’s petroleum subsidy programme to be held responsible for the delay by PPPRA to pay” it queried.
According to Ajibola Oluyede “CBN is fully advised of all foreign lines accessed by Oceanic Bank and at no time did CBN advise or caution against these lines. The lines are used to service the domestic economy and are used to finance critical imports like petroleum products. Whilst these positions were open the CBN without warning devalued the currency by N30 to the US dollar; without consideration for the loss implications of the open lines. For a foreign line base of $500 million it translated to a cash loss of N15 billion to the bank.
The attempt to characterise the financing of essential goods including consumables as speculative is wrong, untrue, unfair and unjust. As a result of global meltdown, foreign banks withdrew the foreign lines leading to a funding contraction. Such a funding contraction is obviously not due to mismanagement. This ought to have been predictable and support given to the banks to ensure it did not sharply affect their liquidity.
“The CBN governor said he took the actions leading to the takeover of our client because the CBN was having to guarantee interbank deposits and he read that as a sign that the system was under threat. This is clearly a fallacy. On the contrary a robust interbank system with free flow of fund between banks with shortfall and those with surplus is a crucial part of a healthy banking system.
In times of disruption like those that happened in the situations set out above this market dries up because banks are unable to measure risk. Part of the role of the CBN in such times is to aid market rejuvenation. This is what guaranteeing interbank deposits does. This is exactly what the Bank of England did recently without harm to the system. Infact it is partly responsible for the return of the system to profitability. In our country this was the understanding of the measure and the CBN had already indicated that these guarantees will be withdrawn by March 2010. It is in these circumstances therefore unjustifiable and even irrational for this peremptory takeover 8 months before the set date. Our clients trust in your sense of justice, which we have also advised, is well worth appealing to. We therefore anticipate with gratitude your prompt and decisive response”.
Reasons for CBN action: Some bankers are of the view that the CBN has every reason to intervene in the banking sector only if there is crisis. This time around they say the apex bank has bungled every reason it has adduced so far. The CBN accused the five banks of high level of non-performing loans which was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to the bank’s credit risk management practices.
Thus the percentage of non-performing loans to total loans ranged from 19 per cent to 48 per cent. The five banks will, therefore, need to make additional provision of N539.09 billion. The total loan portfolio of these five banks was N2,801.92 billion. Margin loans amounted to N456.28 billion and exposure to oil and gas was N487.02 billion. Aggregate non-performing loans stood at Nl,143 billion representing 40.81 per cent.
The huge provisioning requirements have led to significant capital impairment. Consequently, all the banks are under
capitalised for their current levels of operations and are required to increase their provisions for loan losses, which impacted negatively on their capital. The CBN did not give the nation the benefit of the state of each of the banks. It gave a total view of the situation without giving specifics.
Debtors take on CBN: But a number of persons and corporate bodies listed as owing the five banks various sums of money are contesting the amount the CBN claimed they are owing. Among those who reacted to the CBN publication are the chairman of Obat Oil and Petroleum Company, Fredrick Akinruntan, businessman Jimoh Ibrahim and Rockson Engineering Company. Akinruntan described the inclusion of his name in the debtors’ list as embarrassing, claiming that the report did not reflect the reality on ground.
He was accused of owing Oceanic Bank N4.47 billion. He denied owing any unserviceable loan. He said he collected N2.5 billion from the bank to develop a property in Abuja and has never defaulted on the terms he agreed with the bank. Akinruntan said the bank should speak up on his claim. Also, Ibrahim, who is the group managing director of Global Fleet Group, denied owing Oceanic Bank N14 billion. He threatened to sue the CBN for “lying about the amount” involved. In a briefing in his office in Abuja Ibrahim said:
“My company did not owe Oceanic Bank N14. 7 billion. The CBN lied on the figure, a development that has affected the credibility of the CBN’s regulatory function.
“Oceanic Bank, by a letter dated May 18, 2009, had put all the outstanding debts of all Global Fleet Group at N8 billion as the bank acknowledged receipt of N3 billion I paid in May this year. In the letter acknowledging the receipt, the bank had written that ‘the total outstanding on your facilities will be N8 billion.’ He accused the apex bank of unfairness by describing the loan as “non-performing” even after paying N3 billion.
Ibrahim said that “the turnover on the account of Global Fleet Group since inception is over N100 billion and will need Oceanic Bank to do reconciliation and provide evidence of withdrawal to enable us pay.” Similarly, the management of Rockson Engineering Company said that the funds it allegedly raised from Intercontinental Bank were meant for implementation of the power projects it is handling for the Federal Government, which has failed to release money for the plants.
The projects are the Alaoji (1072MW), Gbarain (225MW), Egbema (338MW) and Omoku (230MW) power stations. Describing the step taken by the CBN as inaccurate and uncalled for, the chairman of Rockson, Senator Anietie Okon, said the firm was indebted to Intercontinental Bank to the tune of N14.4 billion and not N36.9 billion as claimed by the apex bank.
His words: “Specifically, CBN claims that Rockson Engineering Limited is indebted to Intercontinental Bank Plc to the tune of N36, 989, 685, 692.84. For the avoidance of doubt, we like to state that our reconciled and mutually agreed commitment with Messrs Intercontinental Bank Plc is N14, 423, 291, 589.49.”
A statement from Dangote Industries stated inter alia: “We refer to the CBN advertorial in various print publications dated 19th August 2009, listing Alhaji Aliko Dangote as a director and shareholder of Dansa Oil and Gas Limited, a defaulting customer to Intercontinental Bank Plc. We wish to state for the records that Alhaji Aliko Dangote is neither a director nor a shareholder of Dansa Oil and Gas Limited as averred.
This is verifiable through the Company Registration documents held by the Corporate Affairs Commission (CAC) wherein directors of the said company are listed as: Alhaji Sani Dangote, Alhaji Mohammed Dangote, Mr Ali Dangote. With reference to Dangote Industries Limited’s indebtedness to Oceanic Bank Plc to the value of N2,526,460,000.00, we are in dispute over the charges and are very close to resolution.
A company of our size will take on facilities from bankers and financiers in the course of our business. As a responsible organization, we deliver to our obligations in servicing these loans. “It is on record that our credit rating remains admirable and our bankers have confidence in our ability to meet our obligations.”
Management of Dansa Oil & Gas Limited on its part said “We refer to the advertorial published by the Central Bank of Nigeria, dated August 19, 2009, where Dansa Oil and Gas Limited was listed as one of the defaulting customers of Intercontinental Bank plc and wish to state the facts as follows: Intercontinental Bank plc in 2007/2008 granted a facility to Dansa Oil & Gas for stock acquisition in the Nigerian capital market.
The facility was used 100 per cent for the purpose it was granted. The funds were disbursed directly to the stockbroker appointed by Intercontinental Bank and the shares were held in trust for the bank inclusive of our own contribution of 30 per cent in cash and shares.
Part of the documents given to Intercontinental Bank to support the loan facility included the mandate to sell without recourse to Dansa Oil & Gas Limited at any point, should the value of the stocks fall below 120 per cent, a right Intercontinental Bank did not exercise till the market fell far below that value.
Given the market situation and having understood the implications of not exercising the right to sell, Intercontinental Bank approached Dansa Oil & Gas Limited on April 28 2009 requesting a meeting. During the meeting Intercontinental Bank proposed a restructure of the facility for a new seven year tenure within which period they expected that the market will have recovered and they will be able to exercise the right to sell. This fresh proposal came with a moratorium period for one year for both interest and principal effective 2009.

For those accusing me of referencing Daily Trust, this is for you:

THE NATION: http://thenationonlineng.net/web2/articles/30703/1/Questions-for-Renaissance-Professionals/Page1.html

NIGERIA VILAGE SQUARE: http://www.nigeriavillagesquare.com/articles/guest-articles/questions-for-renaissance-professionals-2.html


Oya, tell me The Nation and NVS are also biased.