Sanusi must Go.

There is more to this than meets the eye!

Sacking of Bank MDs/CEOs is the norm in banking industries, but public naming of debtors sound kind of 'Nigerian Way' of doing things.

If you want to make any difference in Nigeria you hve to Shout Loud and Clear. If we try to do anything behind close doors, it doesnt work out. Not in Nigeria, everything have to be bared open.

Example, Access Bank have bn asking Femi Otedola to pay them back, the guy refuse untill they decide to go out in the public. Now he have payed. You will be suprise that these guys have recieve letters, upon letters and letters from the banks to service their loans and the have refused.

Why do you guys think Nuhu Ribadu did well during the EFCC? He was Shouting Loud and Clear

Ok, guys walk along any street in Nigeria, the noise level is damn high. We have to shout to hear ourselves.

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!

The caption for your write-up was quite an irony. While warning Nigerians to be wary of propaganda, you went ahead and dished out a beautiful propaganda piece, whipping up every known sentiment in the book but unfortunately, with scant faith to facts. I dont intend to join issues on tribal grounds, but it is apparent those CEOs were not running the banks professionally. Yes, one of the primary functions of the bank is to drive economy through the disbursement of credit facilities. However, this must be guided by some strict rules since the funds in their custody belong to depositors. These rules were not adhered to. Some of the banks granted facilities above the obligor limit while most didnt bother to follow the due process.

The risk of letting the sleeping dogs lie would be to allow this sore to fester into cancerous proportions. The CEOs must learn that being custodians of people's money, they have the responsibility to safeguard it and not hand it to anyone who happens to ask for it. This exercise will make bank chiefs to be more prudent and disciplined in their credit decisions.  
Arrests and detention is a routine measure during fraud investigations and there is nothing special in the case of these five people. It is only the guilty that need to be afraid of indictment. Those in glass houses should not throw stones. The banks that got a clean bill are not fulani owned. I'm sure if you are lending out your personal money, you'll exercise some caution and ensure to a large extent, that you limit the chances of default.

Let us not view every attempt to sanitize this polity through the prism or tribalism.   If the Fulani, Kanuri, Idoma or Ijaws are better fund managers, I'd be glad to leave my money in their care!

It is important to separate the multifaceted actions taken this week by Sanusi and analyse each on its merit rather than lumping them together. In this way, we could then analyse his decision to sack the bank bosses clear-eyed and devoid of emotion:
Sanusi’s actions were threefold; Firstly, sacking of the Bank executives, releasing what CBN’s examiners unravelled following the audit exercise; secondly, releasing the names of Billionaire debtors that brought down the 5 Nigerian Banks and the details of their account, and: thirdly, handing them over to the EFCC  for arrest and possible prosecution.

http://elombah.com/index.php?option=com_content&view=article&id=1383:sanusi-lamido-sanusi-whose-agenda&catid=30:the-economy&Itemid=41

@SapeleGuy "Sanusi must go" go where?

Nigerians are extra ordinarily religious but possess very low moral gauge. If those banks have been in the us or britain, i am sure the CEOs would be cooling their heels in prison. If it was China, their heads and their bodies would have been at different locations by now. ( i am not pronouncing the them guilty), but the laws would have taken its course.

In America there is something called Anti- Trust Law and a law against bridge of public trust. They are nor criminal offense per se, but if you put your self at an unfair advantage, you could pay a heavy fine.

Even Bill gate (microsoft)had to pay hundreds of millions in both US and Europe as punishment for unethical monopolistic behaviour.

That is the only way to ensure a vibrant economy.

wirinet:

Nigerians are extra ordinarily religious but possess very low moral gauge. If those banks have been in the us or britain, i am sure the CEOs would be cooling their heels in prison. If it was China, their heads and their bodies would have been at different locations by now. ( i am not pronouncing the them guilty), but the laws would have taken its course.

In America there is something called Anti- Trust Law and a law against bridge of public trust. They are nor criminal offense per se, but if you put your self at an unfair advantage, you could pay a heavy fine.

Even Bill gate (microsoft)had to pay hundreds of millions in both US and Europe as punishment for unethical monopolistic behaviour.

That is the only way to ensure a vibrant economy.

@ bolded, like Sir Fred Goodwin ( Fred the shred) is doin

Hello,

Reading about the changes in the management of the banks, I have the following to share:

1. I believe Nigeria will be the better for it, even in the short-term
2. Things were done a little too hastily to convince me of a sincere advancement. The type, size and line of businesses money was lent to require that the pay-back periods of such loans should be anywhere in the region of 6-12 years, at least. In today's Nigeria - energy crises and MEND - different reasons could exist to delay pay-back periods. Declaring these loans 'toxic' and 'non-performing', mistaking the exact amounts borrowed, typo errors in naming borrowing partners and a little delay in releasing same audit figures for the remaining banks till now is a little hurried, in my view.
3. I am disappointed Soludo didn't tell "me" this. What he did about it is a different kettle of fish altogether.

Up Nigeria!

If the Swiss decide to open a bank in Nigeria, most depositors would prefer to bank with them. Banking business thrives on public confidence and trust. Once these are compromised, the bubble bursts. Let us demand for the highest level of banking standards and stop being distracted by tribal sentiments.

wirinet:

Nigerians are extra ordinarily religious but possess very low moral gauge. If those banks have been in the us or britain, i am sure the CEOs would be cooling their heels in prison. If it was China, their heads and their bodies would have been at different locations by now. ( i am not pronouncing the them guilty), but the laws would have taken its course.

In America there is something called[b] Anti- Trust Law and a law against bridge of public trust. They are nor criminal offense per se, but if you put your self at an unfair advantage, you could pay a heavy fine.

Even Bill gate (microsoft)had to pay hundreds of millions in both US and Europe as punishment for unethical monopolistic behaviour.

That is the only way to ensure a vibrant economy.

anti trust law is to guide against monopoly another thing citi group, bank of america, royal bank of scotland , wells fargo, j.p morgan,A.i.g, h.s.b.c, swiss u.b.s, all this had the same problem like their nigerian counterparts, but none had their boses fired

this is serious! cantankerous and dangerous!, SANUSI AND EFCC are up to something! yes what i may called political prostitute and show of egoism[pardon me if u are getting me wrong]

he has done the least expected from him.his action has further aggravate our fragile stock prices. his decision was taken in bad faith in his effort to show off that he is up to the task. either u like it or not, i bet u, his own worse misdeed would be exposed in due cause. he has further cast aspersion on our re-branding project.we have banks that are worse than those five banks!

My people never u trust EFCC! because in the long run, after as usual secret deal, nothing would be heard again.
lets see what happened next. NIGERIA IS GOING TO SOMEWHERE! BEING A BANKER DOESNOT MEAN THAT U HAVE THE CHARISMA,

I have two questions for Lamido:

1. How's the weather treating you today sir?
2. Do you need any assistance with your mission sir?

@mjbaba
help me tell them my brother, some time ago list of nemes of backer of millitant, i mean their sponsors, we have not seen them anywhere in the news, only time will tell where this nation is heading. surely there is a cabal holding the development of this nation down. time my brother holds the answers. they are really succeeding taking away our attention from the problem we are facing.

[/quote][quote author=naijatoday link=topic=312947.msg4399494#msg4399494 date=1250918027]
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.

This is an untruth statement. Please always cross-check your facts before making it public. There is no gain and excuse for misinforming the public at this Internet age when information is available for all if you are painstaking enough to search for it.
The truth is that Sanusi owned 131, 708 shares as of June 25, 2009 in First Bank. In 2008, he held 835, 797 ordinary shares in the bank.  He has no indirect interest as some directors of the bank usually do. You can cross-check this fact by flipping through FBN Plc annual report for the year ended 3/31/2009, page 77 or simply browing the report on the Internet available at this address:

http://www.firstbanknigeria.com/mc/dloads/Annual_Report_2009.pdf

Abeem:

This is an untruth statement. Please always cross-check your facts before making it public. There is no gain and excuse for misinforming the public at this Internet age when information is available for all if you are painstaking enough to search for it.
The truth is that Sanusi owned 131, 708 shares as of June 25, 2009 in First Bank. In 2008, he held 835, 797 ordinary shares in the bank.  He has no indirect interest as some directors of the bank usually do. You can cross-check this fact by flipping through FBN Plc annual report for the year ended 3/31/2009, page 77 or simply browing the report on the Internet available at this address:

http://www.firstbanknigeria.com/mc/dloads/Annual_Report_2009.pdf

huh! Thanks for the correction.

naijatoday:

huh! Thanks for the correction.

U did not need all that info.

No body becomes an MD or CEO without having a stake in their company. Even when you are hired from another company, most times you have to buy a stake on arrival.

Its like selling a product you don't believe in.

McKren:

U did not need all that info.

No body becomes an MD or CEO without having a stake in their company. Even when you are hired from another company, most times you have to buy a stake on arrival.

Its like selling a product you don't believe in.

I do not think it is compulsory in all companies unless I am wrong.

This was how they said OBJ embezzled 16Billion energy fund. It filled the media, now nobody talks about that.

They said Ribadu had houses in UK, US and Duba . . . .the last time I checked they are only charging Ribadu for not declaring his assets which Ribadu claims he did.

They said El-Rufai stole 32 Billion and continue to make this false claim even after Remi Babalola (the Minister of State for Finance) said the Money was in Government Account.

Now its Soludo, they will accuse him of everything but no one will charge him to court because they have no evidence against him.

It only begs the question why does this cycle continue ? The only reason in my view is that they do it to attack your records of achievement when they think they can't match. I am very disappointed Sanusi has chosen this path.

and Nigerians need to learn to ask question and stop swallowing everything they hear because the new man at the helm says so

Sanusi will soon leave this office and we will hear from his successor.

i think what the present CBN Governor did was ok. cos if we have a strong Leader that can help us comb all the fake and incapable leaders; NIGERIA will be a better place.

quote author=ogunniyi2 link=topic=312947.msg4401169#msg4401169 date=1250948487]
this is serious! cantankerous and dangerous!, SANUSI AND EFCC are up to something! yes what i may called political prostitute and show of egoism[pardon me if u are getting me wrong]

he has done the least expected from him.his action has further aggravate our fragile stock prices. his decision was taken in bad faith in his effort to show off that he is up to the task. either u like it or not, i bet u, his own worse misdeed would be exposed in due cause. he has further cast aspersion on our re-branding project.we have banks that are worse than those five banks!

My people never u trust EFCC! because in the long run, after as usual secret deal, nothing would be heard again.
lets see what happened next. NIGERIA IS GOING TO SOMEWHERE! BEING A BANKER DOESNOT MEAN THAT U HAVE THE CHARISMA,
[quote][/quote]
@times, most @times, nairaland stinks. no body tries to c d good in any body that does not belong to his own divide, this is nepotism of the highest order, most worrisome is the fact that posters here are the so called elites.[

Why is the north trying so desperately to destroy the economy of the south? First electricity, then stock market and now banks! whose fault is it that the north remains underdeveloped? Is it not same northerners that have looted this country blind? are they looking for war? are they so sure they will win or they are just stupid and blood thirsty?
na wa o.

@Abeem et al,
Sanusi had that 131,000 units of share as at year end march 09, b4 becoming CBN guv. He divested immediately he became CBN guv to avoid conflict of interest. As I write now he doesn't av shares in FBN again.

Sanusi did the right thing. What did you expect him to do keep doling out money to these five bottomless pits of mis-management or call their bluff expose Soludo's lies and start to forge a new direction to a more secure future.

I stand body, mind and Soul with Sanusi Lamido.

I am Igbo but i chose Sanusi over Soludo any day of the week.

Sanusi is a man of strong convictions that is why he did not shy away from the right path even when it was the most difficult decision i have ever seen a Banker take in my life time.

Kudos Sanusi Lamido. KINGS' COLLEGE SALUTES YOU.

YOU ARE TRULY A KING.

Sanusi may you live long.

May your critics live long enough to apologise and praise you.

I have never met you but i feel you in my blood for i know what it means to be you. You are the swift wind that unviels the provebial fowl. God has decided to use you and you have decided to do God's work but remember a prophet is never known in his own home.

Sanusi please do not give up on these blind people called Nigerians continue the task of Rigtheousness. I pray in Jesus name that you remain ever strong.

Why are Nigerians so quick to absolve the accused? its even more nauseating when the tribe card is played, can u imagine?pls who can come up and tell us whether Akingbola or Ibru did not do unethical practices?Abegi!!!Look i support sanusi 10,000%,if those people are guilty they should be jailed simple.
And if at the end of the day Sanusi himself also has skeletons in his cupboard then he should be tried too! It is only in attacking bad practices anywhere we find it regardless of tribe that we will wipe out corruption.
Thats the same way they hated Ribadu cos he was 'selective' but i dont read anywhere he jailed an innocent man, what we should be campaigning is that successive powers everywhere go after corruption and then can we truly say we want to improve in nigeria not by crying over petty tribal issues!

@Affalatus and reindeer,
THAT'S THE SPIRIT,
This is Nigeria and and it affects both south and north citizens, It shows how illiterate the so called literate people we have here think. Everything is all about tribalism!!!!!

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

Because these 5 are responsible for 85% of the problem. Please stop being deliberately naive. How long do you think he coulve kept this under wraps without those titans and the big names you saw as debtors shutting this down.

Please stop this madness. If its a conspiracy Oceanic and co should return the lifeline given to them. [b]my question[/b]Why are they asking for an additional 140Billion (after receiving 120billion) if its a lie and they are healthy. How can a CEO take a bank to minus26% liquidity and still have effontry to grandstand?

They should all apologise to the OWNERS of the banks. THE SHAREHOLDERS who are left with worthless scraps of paper called share certificates after these criminals screwed them over.[size=12pt][/size]

Even though i did not know of Sanusi's antecedents, i support his moves 100% sharia scholar or not. He is the only person that is different in all the govt officials of the past few years. Know that i am reading about his past, i am falling in love with this guy. If he continues and is able to clean the banking system, i might start a Sanusi for president campaign. Even a blind and deaf person does not need a Dayo Coker to tell him that those five banks are ffucked.

jacobs123, nairakween, Ess, reindeer, Affalatus, etc, you people are symbols of our future Nigeria. Immune to ethnic, tribal, religious, class and tribal sentiments.