•To inject N200bn •

An additional N200 billion may soon be injected into the banking sector by the Central Bank of Nigeria (CBN), which is also set to intervene in five more banks in a bid to safeguard the sector from systemic collapse.
This indication emerged hours after the board of BankPHB failed to reach a consensus on the removal of its Managing Director, Francis Atuche, who has recently been under tremendous pressure to quit following the outcome of the last audit report.
Barring any last minute changes, the five more banks that may be affected in CBN’s latest intervention are Spring Bank Plc, BankPHB Plc, Equitorial Trust Bank, Wema Bank Plc and Unity Bank Plc.
THISDAY gathered that CBN Governor Sanusi Lamido Sanusi intimated President Umaru Musa Yar’Adua and members of the Economic team about his findings and how to much would be required for the intervention immediately after yesterday’s Federal Executive Council (FEC) meeting. 
The proposed CBN intervention and capital injection in the five fresh banks is coming precisely a month and a half after the banking watchdog injected N420 billion lifeline into FinBank Plc, Union Bank of Nigeria Plc, Afribank Nigeria Plc, Oceanic International Bank Plc and Intercontinental Bank Plc and sacked their chief executives, saying lax management had left them dangerously undercapitalised.
These institutions have since been taken over by CBN appointed managements, which have since been running the banks as going concerns until new investors are found to recapitalise them.
The managements of the first five banks were removed following the outcome of the first round of the audit concluded by CBN early last August - covering 10 banks of which five comprising First Bank of Nigeria Plc, United Bank for Africa Plc, GTBank Plc, Diamond Bank Plc and Sterling Bank Plc were certified fit.
Banks included in the second batch of the audit, which have been concluded are Skye Bank, Bank PHB, Ecobank Nigeria Plc, Spring Bank Plc, Access Bank Plc, Wema Bank Plc, Unity Bank Plc and Equitorial Trust Bank.
Three others – Standard Chartered, StanbicIBTC and Citibank –  are in the third batch of the audit that has also been completed. The results of the audit are expected to be officially announced by CBN in the next two weeks.
The general parameters upon which the examination of the banks' records was based included capital adequacy, liquidity, solvency and corporate governance.
THISDAY gathered that based on the advice of the CBN solicitors, due process was followed during the recent audit process as  the respective chief executive officers of the affected banks were allowed to go through reports arising from the audit and make adequate responses to them.
CBN may have decided to change gear in handling the situation in the affected fresh five banks.
Unlike the method it adopted on August 14 when it specifically removed the CEOs and executive directors of the five banks affected in the first batch of the audit, the apex bank may have decided to let the board of directors of the five banks found wanting in the latest audit to implement the tough decisions necessary to put the banks in order.
The newspaper had reported two weeks ago that four of the affected five banks’ boards had been mandated to carry out certain measures to be dictated by CBN in accordance with the Banks and Other Financial Institutions Act (BOFIA) and CBN Act.
But efforts of the board of Bank PHB to persuade Atuche to voluntarily resign over the audit report of the bank proved abortive yesterday at a meeting exclusively for the non-executive directors in Lagos. The directors are said to have briefed CBN about this development.
With Atuche’s refusal to step down, he seems to have jeopardised the opportunity of BankPHB to appoint its own Managing Director to work with CBN.
The apex bank may have to appoint someone to take charge of the bank.
It was gathered that BankPHB has three major issues. One is the N65 billion, which it used to acquire Spring Bank, the second is the N50 billion forbearance the bank sought for Spring Bank, while the third is the N23 billion loss alleged to have been incurred during the tenure of the CBN Interim Management Board of Spring Bank led by Sulleyman Ndanusa.
During the tenure of the immediate past CBN Governor Chukwuma Soludo, BankPHB  had tried to secure a N50 billion forbearance, which was presented at the last board meeting that Soludo attended. The request was said to have been turned down.
When the incumbent CBN governor came in, the same request was also presented to the apex bank’s board and it was also rejected.
The thinking of the board was that if at all any forbearance was to be given, it should have been for everyone who wanted to buy Spring Bank and not specifically for BankPHB.
THISDAY gathered that officials of BankPHB are currently in talks with CBN to persuade it to remove the N23 billion losses incurred during Ndanusa’s tenure from its books on the excuse that they were not in the know when they acquired Spring Bank.
But the CBN was said to have declined, insisting that BankPHB ought to have done its due diligence before acquiring Spring Bank.

weeks ago some people were claiming that Sanusi refused to give the sacked MDs the option of resigning on their own and i posted this

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i am not a soothsayer but the Nigerian elite never cease to amaze me with the inelasticity of their greed.
Sanusi should stop throwing away our money in these cesspools called banks.
allow them to fail.others will learn a lesson.
before the cries of protecting jobs of the bank employees begin, try to imagine 200 billion naira.
these crooks will not learn their lessons.

i thought ndanusa was recently apointed into one of those 5 banks as an ed, atuche if guilty would have little or no choice, pressure,

So Sanusi has finally learnt about law, politics, and due process procedures

Looks like Sanusi's latest subtle approach is an admittion of his own failures in the last 2 months.

If he wants to bid a U-Turn he should be man enough to execute a proper one. There is no point acting like a learner trailer driver attempting a 3 point turn on the motorway for the first time.

what he should be doing right now is preparing for life psycologically when the 5 bank ceos he sacked has been re-instated not plotting for other means to sack more. the number of bank ceos you sack is not an economic index.

^^^^^
i tend to disagree with you.
the new approach only proves the former right.
people were crying for him to give the CEOs a chance to defend themselves and probably let then resign on their own accord.
Nigerian's will never resign in spite of the evidence against them.
infact i will not be surprised if Atuche and his types go to court to stop CBN moving against them.

i am more worried about the billions we are using to prop up these banks that are being ruined by these cowboys.

if the former is right why did he not stick to it?

or may be he never acts based on conviction but calculation.

i did not know our most important economic worry should be to sack bank ceos hence if it does not work one way then we achieve it by other means.

i think sanusi got his priorities twisted.

the former entailed a lot of distractions.
some people believe that Erastus and co were victimized and not given the chance to defend themselves.
with this new approach, it will still be the same outcome but no dramas.

mbulela:

the former entailed a lot of distractions.
some people believe that Erastus and co were victimized and not given the chance to defend themselves.
with this new approach, it will still be the same outcome but no dramas.

Is there any positive achievements recorded in the last 2 months in terms of economics?

We have most credit lines shut, businnesses are hurting, banks are secretely retrenching workers, the stock market is crashing etc and yet we are trying to achieve the same results through another means.

Even though he sacks the 24 Bank MDs it will not amount to an achievement on the part of the CBN Governor because that is, never was and never will be an economic index. We need pragmatic solutions to solve our unique problems. The problem at stake runs deeper than these Bank CEOs, we are better off as a Nation finding solutions to these problems with these guys on the team, than spending time and resources to remove them with no tangible achievement to show.

Let Sanusi stop this cowboy politics and start practicing economics, if he wants to bid a U-TURN he should be man enough to bid a proper one.

Wish u a good day and see you later.

cowboy banking deserves cowboy politics.
which stock market
Please leave Sanusi out of that.It died a sudden death a lot time ago.
Nigerians will lynch Ndi Okereke and her fellow travelers in a short time.

mbulela:

cowboy banking deserves cowboy politics.
which stock market
Please leave Sanusi out of that.It died a sudden death a lot time ago.
Nigerians will lynch Ndi Okereke and her fellow travelers in a short time.

By how many percent did the stock market crash the week Sanusi removed those 5 MDs

you tell me.

Time has continued to prove me right with regards to my previous posts about Sanusi's sanitization style.Thank God he's learnt from his first blunder,this time he has decided to follow due process and not that mafian style he earlier adopted.Another thing i ve noticed with Sanusi is his knack for speculations which alwayz turn out otherwise.When ppl like me argued that he should ve wait and finish the whole audit exercise before taking such a drastic action,he countered back by saying those 5 where obvious bla bla bla bla, And then we kept asking what if there are others whose so-called symptoms are not obvious,will he also sack thier CEO and EDs?The problem goes beyond that,Ok take BankPHb for instance,the major problem they are having stems from thier hostile take over of spring Bank which was suffering from bad loans.Anyway let's continue to watch.

God dey

Sanusi's change of tactics is an admission of error. What a comedy of errors
I am sorry for his diehard fans on this forum who have since refused to see objective indices from our economy, instead they live by making ridiculous excuses for their man at the turn of every new disasterous event.
Wake up Jaru, biina, ndu-chucks, and mbulela remove your religious and tribal lense and see objectivity.

Congrats to the revealation of the latest agbero on the Nigerian scene.
He has been so successful that banks have ceased normal operations. Indeed, as is Sanusi's wish, our banks have become one way doors; no man born of woman can borrow a miserable dime from any of our banks, lest the dogs of Waziri be set on them.

In Nigeria, we measure greatness in the amount of pain and displeasure a leader can dispense. By that measure, Sanusi has done very well; all small and medium scale industries are feeling the bite of Sanusi's self inflicted Nigerian credit crunch. Hurray! Soon the pain will spread!

I'm not sleeping. I stand by all my assertions. u're d one seeing thru tribal and religious lens. Sanusi's hardline, radical personality may have told in his approach, but I'm convinced beyond doubts that Sanusi is not pursuing any hidden agenda, tribal or religious. You are the ones looking at his actions from a warped mindset.

Jarus,
why did you duplicate this topic?

naijaking1:

Sanusi's change of tactics is an admission of error. What a comedy of errors
I am sorry for his diehard fans on this forum who have since refused to see objective indices from our economy, instead they live by making ridiculous excuses for their man at the turn of every new disasterous event.
Wake up Jaru, biina, ndu-chucks, and mbulela [s]remove your religious and tribal lense and see objectivity.[/s]

None of the two applies to me, unfortunately.
try something else.

mbulela:

Jarus,
why did you duplicate this topic?

I wasn't aware of this thread when I opened the other one. Imediately I saw this, I asked that my own be deleted or locked but Seun(I guess),instead, preferred to move it to another section(Money) and even went further to send it to the homepage, to my own surprise too.

Jarus:

I wasn't aware of this thread when I opened the other one. Imediately I saw this, I asked that my own be deleted or locked but Seun(I guess),instead, preferred to move it to another section(Money) and even went further to send it to the homepage, to my own surprise too.

No shaking.
you be better guy, so no wahala.