I just hope Sanusi has an answer to this problem o, because if it is allowed to linger, it will not be as trivial as we are taking it. Nigeria survives mainly on importation.

Beaf:

When some of us came out heavily against the agbero actions of Sanusi, we called all sorts of saddening names. People rushed out, [b]masturbating over his "writings" [/b]as if those were going to somehow save the banks. Finding problems is one thing (if there were really any), the wisdom to resolve them properly is another.

Obama hit the nail on the head when he said Africa's problems were due to a lack of instituitions. But here was a man handed the most successful of our nascent instituitions, only to wreck what took many long years to build in two short months.

Should we laugh or weep? We love mediocrity and "action" in Nigeria.
Welcome to sharia style banking, chop off a few limbs here and there, stone the others; Hellooo. . . year is 2009!

ha ha ha roflmao ha using vaseline ha ha tell them my broda, where is dat guy jarus or whatever?

@Beaf,

Have you heard of Standard Chartered Bank, one of the only financial institutions that successfully managed the financial crisis? That bank is focused on trade finance. They have branches all over Asia, Europe and the Americas. They also have a licence to operate in Nigeria. If you are a serious businessman and your bank's LCs are being rejected by foreign banks, there is always the alternative of moving your account to Standard Chartered or Citibank Nigeria especially as they do not have to go through a correspondent bank.

This is just one example that shows the flaws in Guardian's argument.

Bialegend:

You dare not bring that your useless awusa illiterate mentality here. What provision have you made for local production to gear up before embarking on disrupting foreign importation? You should take that your brainless discuss to www.kanoonline.com where your almajiris will hail your madman thought without first thinking for themselves as it's their trait.
This is how your useless illiterate awusa people destroyed nigeria and still have the guts to defend their madmen actions. Tomorrow, some iddiots will come out here to write that it's only the elite that destroys the country. Look at what kind of response a human being is given in this situation of sanusi's madness policy only because he is from the same northern nigeria as sanusi. Nonsense!!!

@Bialegend,


Your high school teachers deserve to be flogged for letting you out of Umuahia Community School with a certificate. Even teenagers do not write such drivel. Please, take it easy with your decimation of the English Language.


Perhaps you should seriously consider writing in Igbo.

And please stop repeating that hackneyed "Ewu Awusa" line.

Iti Bolibo!!!

Will Standard Chartered accommodate ALL customers? Will they instantly extend credit facilities to the thousands of businessmen who have built up relationships and trust with their current bank over years/decades?

Simply calling for a switch is being overly simplistic and fails to recognise the complexity of the issue. Standard Chartered and Citi are not even major players in Nigeria so what funds do they hold to be able to meet the obligations of so many customers?

Sanusi needs to clear this up - by rashly publishing that list, he has inadvertently caused a wrong perception problem for Nigerian banks and businesses. He needs to come out and clearly state which banks are completely solvent and can carry on business as usual and complete whatever investigation he is doing on time.

Confidence and trust are essential in international business - once you lose them, it takes a hell of a long time to rebuild.

this man sanusi is pregnant and at the same time nursing a baby. wat this sanusi will bring to nija wears a hat on its head, how can u make a mallam governor of CBN? events r still unfolding n sanusi will soon nail his own coffin. watch out!

qblaze:

@Beaf,

Have you heard of Standard Chartered Bank, one of the only financial institutions that successfully managed the financial crisis? That bank is focused on trade finance. They have branches all over Asia, Europe and the Americas. They also have a licence to operate in Nigeria. If you are a serious businessman and your bank's LCs are being rejected by foreign banks, there is always the alternative of moving your account to Standard Chartered or Citibank Nigeria especially as they do not have to go through a correspondent bank.

This is just one example that shows the flaws in Guardian's argument.

and that is a solution to the problem? my friend get out of here if u don,t have any contribution, when you  phuck up the best thing to do is to keep quiet and do a damage control, you are still rolling ur empty vessel. sanusi ass licker

Did you just say that Standard Chartered and Citi are not major players in the Nigerian economy? You obviously think that a bank should be judged on the number of its branches.

Nigeria's biggest trading firms operate accounts with SCB, Citi and Stanbic. By the way, the banks that passed the audit are definitely not having problems with their LCs. The Guardian's dumb article must be referring to Oceanic and Intercontinental which have been on life support for some time.


SCB/CITI/STANBIC

Oando/ Biggest oil trader
Dangote/ Big trader
MTN/ Biggest Telecommunications firm
Shoprite/ Biggest Nigerian Mall
Maersk/ Global powerhouse
QBlaze/ International businessman


Do your research and come back with a new argument.

df2006:

and that is a solution to the problem? my friend get out of here if u don,t have any contribution, when you  phuck up the best thing to do is to keep quiet and do a damage control, you are still rolling your empty vessel. sanusi ass licker

I love sparring with buffoonish clowns like you.

I support Sanusi because I've looked at his actions and they make perfect sense. Morons like you are afraid of losing their jobs but the truth is that you are too obtuse to actually educate yourself.

You are actually a perfect example of the problem with our banking sector. You lack basic punctuation skills and you probably paid for your degree.
Griping on the Internet won't change the fact that he's the CBN Governor. If you can't handle that, please take a gun and put a bullet in your head.

qblaze:

The moronic Bialegend has decided to assail us with his limited grasp of international economics. The use of an LC is not limited to businessmen that have to borrow money. It is also a means of ensuring that you do not get swindled by a trade partner as the bank will only remit the funds after the terms of the transaction are fully met.

And why are you commenting on this thread? I thought you were a Biafran nationalist.

You've still not explained why the great leader, Dim Odumegwu Ojukwu took part in the Nigerian presidential elections.


Delusional nincompoop!!!

Are you not ewu awusa, gworo chewing, almajiri illiterate? Your place is at www.kanoonline.com where sharia infested boko haram, brainless people like you converge. Your level as an awusa person is still low to be hanging around in this forum.

Fellow Nairalanders, i am not coming on here to mention anything about Lc of importation or anything , but what i have to say is that what has happened in the Nigerian banking sector is bound to happen. lets put aside tribalism and prejudice and hatred for one another andd sit down and reason for once what has happened here. The financial crisis started in the us first with the collapse of Lehman brothers and one by one it started affecting other financial insitutions as well as other countries. when this was affecting other countries, jobs were being lost in the banking , financial secotr as well as other sectors as well including construction and even cleaners were losing their job as well as being made redundant. these led to th government of this contries coming together to try and boost up the economy by pumping money into the banking sector, some banks took the funds while some didnt such as the likes of barclays. but lets also bearing in mind that these countires have welfare packages for their own people such that as being unemployed, the government will pay your rent for you as well as council tax, and you yourself will be entitled to various benefits such as JSA, INCOME SUPPORT, TAX CREDITS, so these benefits makes the lives of individuals less stressful. right now the recession is already ending in a few contries and they are already recovering from the recession and backed with individuals who own their business as well as other industries such as asda and sainburys people are already getting back into employment but the recession is still biting which has made the BOG to leave interest rate at 5%


Back to the nigerian sector, when the recession started and other stronger economy were affected nigerian finance sector were busy cooking up the books and also posting ridiculous profits and because of the greediness of the CBN governor at that time as well as the selfishenss of the likes of ibru, akingbola, e.t.c. those that took billions of loans, Nigerians didnt feel the impact and professionally as a financial advisor in th uk as well as recovery agent the actions of sanusi is the best thing to do because nigerians would have been unaware of what was happening if soludo had still continue to be cbn governor , the books will have been well cooked and all would have been well and all of a sudden nigerians would wake up to see the banks collapse in one day and wothout any funds to be paid to depositors because this is nigeria even the banks whoch folded up years ago till today the depositors are still yet to be paid their money, people see the actins of sanusi as not being the right one becuase he has caused commotion in the secotr which has led to firing of staffs and making more people unemployed to the many unemployed people already making tit difficult. but If we decide to look at these whole issue wwell and as learned people, the actions of sanusi is the best becuase what has happened now as long as his actions are not politically motivated and honest then by the time all these is done the banking secotr will come back bigger, better and stronger. and in doing this many people are going to feel the effet but as they say nothing good comes easy, he has started byy exposing al these people which has affected people which has led to loss of jobs but what he also had kept quiet and these banks had collapse and what would we have done that would be many funds of deositors gone because we all knwo that to get it back will be a problem even peole that are loosing money to ATM funds are having diffculty getting it back not to know talk of millions of nigerians loosing their money to the banks.  so my fellow nairlanders, lets be grateful what happened has happened and lets look at the brighter side of things, after all these i personally hope and believe that this will make the nigerian banking sector stronger and make other banks sit up and start acting right .

qblaze:


I love sparring with buffoonish clowns like you.

I support Sanusi because I've looked at his actions and they make perfect sense. Morons like you are afraid of losing their jobs but the truth is that you are too obtuse to actually educate yourself.

You are actually a perfect example of the problem with our banking sector. You lack basic punctuation skills and you probably paid for your degree.
Griping on the Internet won't change the fact that he's the CBN Governor. If you can't handle that, please take a gun at put a bullet in your head.

Truthfully, sense is relative. One man's sense, is another man's foolishness.
Its not exactly the actions that matter, but the results of his actions. The results of Sanusi's actions are beginning to come out and I pity for folks like you.

qblaze:

@Beaf,

Have you heard of Standard Chartered Bank, one of the only financial institutions that successfully managed the financial crisis? That bank is focused on trade finance. They have branches all over Asia, Europe and the Americas. They also have a licence to operate in Nigeria. If you are a serious businessman and your bank's LCs are being rejected by foreign banks, there is always the alternative of moving your account to Standard Chartered or Citibank Nigeria especially as they do not have to go through a correspondent bank.

This is just one example that shows the flaws in Guardian's argument.

A wise man writes down what he thinks, but a complete idiot like you punishes himself for what he thinks. I think that your northern nigerian illiterates are trying very much in producing bigger and better idiots on competitive level. So far, it's been working well for you guys as we can attest through your moronic comments. So, all nigerian business men, importers should move their accounts to Standard Chartered or Citibank Nigeria? All these in a silly and ridiculous attempt at defending the moronic and madness actions of your almajiri sanusi?

qblaze:

I support Sanusi because I've looked at his actions and they make perfect sense. Griping on the Internet won't change the fact that he's the CBN Governor. If you can't handle that, please take a gun at put a bullet in your head.

Complete product of kafanchan community sharia school. Who ever lumped these almajiri illiterates together with us in one country deserves to be shot. About 20 million people that doesn't have up to 200 of them in nigeria universities. There's nothing more dangerous than resourceful idiots.

Bialegend:

Complete product of kafanchan community sharia school. Who ever lumped these almajiri illiterates together with us in one country deserves to be shot. About 20 million people that doesn't have up to 200 of them in nigeria universities. There's nothing more dangerous than resourceful idiots.

Poor Bialegend.

Please take my advice and start posting in Igbo.

I can't bear your atrocious English.

debosky:

Will Standard Chartered accommodate ALL customers? Will they instantly extend credit facilities to the thousands of businessmen who have built up relationships and trust with their current bank over years/decades?

Simply calling for a switch is being overly simplistic and fails to recognise the complexity of the issue. Standard Chartered and Citi are not even major players in Nigeria so what funds do they hold to be able to meet the obligations of so many customers?

Sanusi needs to clear this up - by rashly publishing that list, he has inadvertently caused a wrong perception problem for Nigerian banks and businesses. He needs to come out and clearly state which banks are completely solvent and can carry on business as usual and complete whatever investigation he is doing on time.

Confidence and trust are essential in international business - once you lose them, it takes a hell of a long time to rebuild.

Don't worry, he is only thinking like his almajiri sanusi brother. All of them from the north have the same brain capacity. Fire brigade approach.

@Bialegend,

Why did the great leader Ojukwu run for the Nigerian presidency?

qblaze:

@Bialegend,

Why did the great leader Ojukwu run for the Nigerian presidency?

Your brain capacity as an awusa person can not comprehend the reasons.

qblaze:

Did you just say that Standard Chartered and Citi are not major players in the Nigerian economy? You obviously think that a bank should be judged on the number of its branches.

Nigeria's biggest trading firms operate accounts with SCB, Citi and Stanbic. By the way, the banks that passed the audit are definitely not having problems with their LCs. The Guardian's dumb article must be referring to Oceanic and Intercontinental which have been on life support for some time.


SCB/CITI/STANBIC

Oando/ Biggest oil trader
Dangote/ Big trader
MTN/ Biggest Telecommunications firm
Shoprite/ Biggest Nigerian Mall
Maersk/ Global powerhouse
QBlaze/ International businessman


Do your research and come back with a new argument.

Your list excludes Zain, Globacom, Conoil, Etisalat, Nigerian Breweries, Guinness, Procter and Gamble, PZ Industries to name a few.

Again, your feeble attempts to paint those niche players as a suitable replacement for ALL INTERNATIONAL TRADE in Nigeria shows you are either ignorant of the scale of transactions occurring outside those few companies you listed or you are simply lack critical reasoning skills.

My point remains valid - SCN, Stanbic and Citi CANNOT replace the international trade business of the over a dozen other banks in Nigeria. SCN and Citi remain niche players and do not hold sway in the economy as such.

Even your much vaunted Oando and Dangote OWE other banks ridiculous sums of money, NOT SCN or Citi so if that doesn't tell you something I don't know what will.

na de same news paper wey dey agressively defend de CEOs wey EFCC arrest don begin publish de kind irresponsible article wey dey confuse people and wey no reflect the real truth.

i go warn una make una use good judgement as una dey process news. make una remember say dis same guardian newspaper is owned by non other than the Ibru Group.  And who be one of de most prominent CEOs wey EFCC arrest? non other than Cecilia Ibru!

Guys stop all these insults. let us be tough on the issue and leave the personal attacks aside.

Qblaze - how can we be happy that LC's from Nigerian Banks have now turned to toilet paper. Decimating the trust that has taken nearly a decade to build in 4 weeks flat.

@SapeleGuy,

First of all, The Guardian did not name the banks whose LCs have turned to "tissue paper". I am positive that the five banks that scaled the initial audit are still enjoying good relations with their correspondent banks. If they are referring to Intercontinental, Oceanic, Finbank and company, then their argument is baseless because for the past seven months, those five banks have been seldom operational in the forex market talk less of facilitating international trade.

I pity all of you. You are all so ignorant, you fail to see the underlying issues. We are heading towards a major breakdown in economic activities and HYPER INFLATION. I am sure you are all also aware that the downstream oil sector will be fully deregulated by November (october ending). Are you aware that you will be paying nothing less than 100 naira for petrol. Probably in the range of 105 -120. Have you seen the landing costs on the PPRA website. This LC issue will be fully felt when we compound our problems in November. The worst is yet to come. Prepare for everything sky rocketing.

axeman85:

Fellow Nairalanders, i am not coming on here to mention anything about Lc of importation or anything , but what i have to say is that what has happened in the Nigerian banking sector is bound to happen. lets put aside tribalism and prejudice and hatred for one another andd sit down and reason for once what has happened here. The financial crisis started in the us first with the collapse of Lehman brothers and one by one it started affecting other financial insitutions as well as other countries. when this was affecting other countries, jobs were being lost in the banking , financial secotr as well as other sectors as well including construction and even cleaners were losing their job as well as being made redundant. these led to th government of this contries coming together to try and boost up the economy by pumping money into the banking sector, some banks took the funds while some didnt such as the likes of barclays. but lets also bearing in mind that these countires have welfare packages for their own people such that as being unemployed, the government will pay your rent for you as well as council tax, and you yourself will be entitled to various benefits such as JSA, INCOME SUPPORT, TAX CREDITS, so these benefits makes the lives of individuals less stressful. right now the recession is already ending in a few contries and they are already recovering from the recession and backed with individuals who own their business as well as other industries such as asda and sainburys people are already getting back into employment but the recession is still biting which has made the BOG to leave interest rate at 5%

You're quite wrong in your analysis of the situation. The former CBN governor successfully guided us through that period without any hitch.

Back to the nigerian sector, when the recession started and other stronger economy were affected nigerian finance sector were busy cooking up the books and also posting ridiculous profits and because of the greediness of the CBN governor at that time as well as the selfishenss of the likes of ibru, akingbola, e.t.c. those that took billions of loans, Nigerians didnt feel the impact and professionally as a financial advisor in th uk as well as recovery agent the actions of sanusi is the best thing to do because nigerians would have been unaware of what was happening if soludo had still continue to be cbn governor , the books will have been well cooked and all would have been well and all of a sudden nigerians would wake up to see the banks collapse in one day and wothout any funds to be paid to depositors because this is nigeria even the banks whoch folded up years ago till today the depositors are still yet to be paid their money, people see the actins of sanusi as not being the right one becuase he has caused commotion in the secotr which has led to firing of staffs and making more people unemployed to the many unemployed people already making tit difficult. but If we decide to look at these whole issue wwell and as learned people, the actions of sanusi is the best becuase what has happened now as long as his actions are not politically motivated and honest then by the time all these is done the banking secotr will come back bigger, better and stronger. and in doing this many people are going to feel the effet but as they say nothing good comes easy, he has started byy exposing al these people which has affected people which has led to loss of jobs but what he also had kept quiet and these banks had collapse and what would we have done that would be many funds of deositors gone because we all knwo that to get it back will be a problem even peole that are loosing money to ATM funds are having diffculty getting it back not to know talk of millions of nigerians loosing their money to the banks.  so my fellow nairlanders, lets be grateful what happened has happened and lets look at the brighter side of things, after all these i personally hope and believe that this will make the nigerian banking sector stronger and make other banks sit up and start acting right .

Mallam, cooking up books is just an allegation, has it been proven in any court of law? That's what Sanusi and people like you who don't understand banking are saying, aren't you ashamed that even the World bank is questioning Sanusi's action? Because you don't understand the real meaning of cooking up books, I'll say that if "cooking" up is what it takes to calm the economy, international debtors, the market, etc, for goodness sake, please cook the damn books, and cook them well.

LCs are the best form of payment in International Trade.

However, i get the feeling that ppl in the thread are getting the impression that LCs are purely credit facilities.

That my friends is not the case, some Importers mostly in the mid-end of the market, confirm their LCs  by depositing the naira equivalent of the Transaction with their banks at the time of opening the LC.

It should be noted that most small time importers esp around commercial cities like Kano, Onitsha, Nnewi, Aba etc tend to pay for their imports through wire transfers. So non confirmation of LCs by correspondent banks will mostly affect the big time importers.

For now, i'll reserve my comments on Sanusis actions lets see how all this plays out.

ndu_chucks:

na de same news paper wey dey agressively defend de CEOs wey EFCC arrest don begin publish de kind irresponsible article wey dey confuse people and wey no reflect the real truth.

i go warn una make una use good judgement as una dey process news. make una remember say dis same guardian newspaper is owned by non other than the Ibru Group.  And who be one of de most prominent CEOs wey EFCC arrest? non other than Cecilia Ibru!

I don't know why tribalistic Hausa boys like you would refuse to see anything wrong with the actions of your kins men, even when it's very clear. Now you want to blame the Newspapers too. The news was not only carried by Guardian, but by Reuters, and BBC. Are you going to wake up and smell the coffee, or wait till next month when a liter of petrol begins to sell for #150, if you can find it?

In the short term, Sanusi's actions have increased the premium on all business activities to do with Nigeria. It is not accurate to say LCs are not being issued but the number of foreign banks prepared to do has reduced and they are charging a lot more as a result of Economics 101 (price elasticity vs supply vs demand) and a larger premium to cover increased perceived risk of default.  Businesses are hurting, trust me.

In the long term, the sanitization of the industry might result in a marked reduction of that premium as the industry as a whole is seen to be more robust.  Its just that I think you can achieve the same goal without the fanfare. Perception is a big thing in business.  Consider for a moment the movement of share prices on the stock market.  It is not as a result of a roomful of lemming accountants continously poring over balance sheets.

qblaze:

@SapeleGuy,

First of all, The Guardian did not name the banks whose LCs have turned to "tissue paper". I am positive that the five banks that scaled the initial audit are still enjoying good relations with their correspondent banks. If they are referring to Intercontinental, Oceanic, Finbank and company, then their argument is baseless because for the past seven months, those five banks have been seldom operational in the forex market talk less of facilitating international trade.

@Diggler,

Thank you for pointing out that LCs are not purely credit facilities.

naijaking1:

I don't know why tribalistic Hausa boys like you would refuse to see anything wrong with the actions of your kins men, even when it's very clear. Now you want to blame the Newspapers too. The news was not only carried by Guardian, but by Reuters, and BBC. Are you going to wake up and smell the coffee, or wait till next month when a liter of petrol begins to sell for #150, if you can find it?

I admit say i guilty small of laziness because i no check de tory for bbc and reuters. my post just suggest say make people look objectively at things.  

However, people like you dey only look at issues from tribal lenses, dat no dey helpful and in fact e dey irresponsible. Just in case you dey ignorant, de banks wey dem bailout for your USA, experience de same letter of credit issue.  correspondent banks wey dey handle banks other than the 5 banks no get reason to refuse any letter of credit.

if you be correspondent bank, e dey prudent to verify say any of de 5 banks fit still honour their letters of credits, especially de ones tendered by businesses wey dey owe billions of naira. if una no know, many of de defaulted loans resulted to the issuance of these letters of credit, so if any bank no honour dem until dem receive reclarification, na prudent thing. dis no be tribal matter at all.

de thing wey dey happen go clean up de banking industry and by de time wey dust settle, Nigerian banking institutions will be better off, foreign investments go flow.

abeg, Abokina,  post me the Reuters and bbc link about the tory. I don search and no other reputable news agency carry de news. if you no fit show me de links from Reuters or bbc, den i go assume say dis report dey almost criminal as de effect of dis kind rumours no good at all. I dey wait for ya links.

@naija king1,

YOU ARE A MEGA DISGRACE TO US NAIRALANDERS ON HERE YOU SAY THE FORMER CBN GUIDED NAIJA FINANCE SECTOR THROUGH THAT PERIOD, I WEEP FOR YOU BECAUSE ALL HE DID WAS DELAY THE SUFFERNESS PEOPLE LIKE YOU WOULD RECEIVE WHICH HAS NOW HAPPENED AND FOR THE RECORDS, I AM NOT A MALLAM, I AM A YORUBA MAN FROM ONDO STATE. ODE IRA NU

axeman85:

@naija king1,

YOU ARE A MEGA DISGRACE TO US NAIRALANDERS ON HERE YOU SAY THE FORMER CBN GUIDED NAIJA FINANCE SECTOR THROUGH THAT PERIOD, I WEEP FOR YOU BECAUSE ALL HE DID WAS DELAY THE SUFFERNESS PEOPLE LIKE YOU WOULD RECEIVE WHICH HAS NOW HAPPENED AND FOR THE RECORDS, I AM NOT A MALLAM, I AM A YORUBA MAN FROM ONDO STATE. ODE IRA NU

SECONDED, but i daresay that Soludo did not only delay the mess but actually aided and abbetted the malfeasances that now stare us in the eyes.
Time alone will reveal the depth of Soludo's involvement in this nasty affair

axeman85:

@naija king1,

YOU ARE A MEGA DISGRACE TO US NAIRALANDERS ON HERE YOU SAY THE FORMER CBN GUIDED NAIJA FINANCE SECTOR THROUGH THAT PERIOD, I WEEP FOR YOU BECAUSE ALL HE DID WAS DELAY THE SUFFERNESS PEOPLE LIKE YOU WOULD RECEIVE WHICH HAS NOW HAPPENED AND FOR THE RECORDS, I AM NOT A MALLAM, I AM A YORUBA MAN FROM ONDO STATE. ODE IRA NU

I laugh at you tribal/religious bigots on this forum, I see how you're trying desperately to change this whole story so that Soludo will be blamed, unfortunately, you have nothing against him, zip!

Meanwhile try correct your boy Sanusi, or ask him to resign so that somebody like Tunde Lemo who understudied Soludo for the past 4 years can clear up the self destrcutive mess he has made in 2 months.

You see, it hard to build, and easy to destroy. It took our banking sector many years to gain some respect internationally, and all it took was a rage of drunken stupor by a questionably qualified sanusi to destroy everything.

Most unfortunately, people like you are still supporting him out of ignorance, stupidity, religious or tribal gingoism------ Idon't know.
For your information, the 5 banks are not the only ones in trouble now, if you read the World bank article you will see that all Nigerian banks are directly or indirectly affected.