North moves to take control of banks
By Jide BabalolaPublished TodayNewsRating: Unrated
ACF sets up mobilisation committee

Haruna The North has launched fresh moves to seize the current fallout of the reforms in the banking sector to significantly increase its shareholding in the sector. The move by the North was part of the resolution at its recent meeting held in Kaduna which communiqué was not released to the public.

However reliable sources at the meeting told The Nation that the meeting decided on a comprehensive mobilisation of its elites towards taking control of a chunk in the banks' shares. To achieve the dream, the Arewa Consultative Forum, ACF's National Working Committee, NWC has set up a committee to implement the plan.

The Nation reliably gathered that the issue was part of the main agenda during the ACF National Working Committee's last two meetings in Kaduna .

An aspect of the resolution obtained by our correspondent stated: “On issues concerning the banking sector, the (ACF) chairman stated that a committee was set up by the National Working Committee in order to address the issue. It stated that 'the North must take advantage of any opportunity of acquiring equities in the banking sector.” The decisions were contained in a resolution reached at the end of its July 1 meeting and signed by ACF's chairman, General I.B.M. Haruna (rtd) and its Secretary-General, Colonel Musa Shehu (rtd). Another meeting held on September 30 also reaffirmed this position. The Nation learnt that more rigorous discussion of the issue took place at the September meeting.

The meeting presided over by General I.B.M. Haruna (rtd) exhaustively discussed issues surrounding mobilization of northerners for decisive investment towards acquiring worthwhile equity holdings in the banking industry.
According to insiders, the ACF NWC whose members have met the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi were impressed with current efforts to sanitize the banking system.

There have been accusations that the recent shakeup in the banking industry was aimed at strengthening the North economically, but the ACF Publicity Secretary, Anthony Sani has continued to deny any Southern agenda. He has expressed anger over speculations in the media seeking to imply that influential citizens of northern origin helped scuttle several banks so that northern interests can acquire them.

Sani said: "What we have been saying is that since the last banking industry consolidation exercise, it has become glaring that the North does not have a bank it can call its own. The only two ways of redressing this are either by raising your own N25 billion bank to start a bank or buying shares in any existing bank.

"The issue of concern in the North is all about mobilization of capital to start and develop businesses. Because of peculiar collective needs, we have to begin processes that will bring about investment in businesses," Sani told The Nation on telephone last Friday.

The Nation

gathered that some former state governors, including Alhaji Saidu Barda, Col. Hamid Ali (rtd), Col. J.I.P. Ubah (rtd) and others such as Brigadier-General M.A. Umar, Justice Yoonus Abdullahi, Alhaji Mohammed Kumo, Lt-Genenaral Jeremiah Useni (rtd), Alhaji Dauda Birma, Brigadier –General Abba Kyari (rtd), Lt-Gen. Mohammed Inuwa Wushishi, Maj. General Muhammadu Shuwa were among those at the meeting.

Sani explained that the body’s NWC deliberately decided not to issue any communiqué or disseminate discussions which took place at its September 30 meeting. He asserted that the meeting was more of a review and continuation of previous discussions on economic development issues.

According to Sani, ACF has no need to exploit access to any influential government officials to facilitate its agenda for increased participation of northerners in their country’s banking industry.

Our correspondent gathered that the ACF also did an analysis of the nature, effect and prospects of the dying textile industry in the northern states, especially in view of the N70 billion Textile Development Fund which the ACF leadership sees as a mirage that is not likely to become actualized by the Federal Government.

Another major issue discussed was the anxiety being generated by evolving patterns of kidnapping which the North had never experienced before.

The sources further disclosed that a special paper presented at the September 30 meeting by one Hajia Fati Ibrahim gave ACF NWC members a comprehensive analysis of how inadequate financing options, outdated equipment, erratic power supply, lax regulations and other problems have ensured worsening unemployment and economic impoverishment across northern states.

"Some members expressed the view that the Presidency can do more towards discouraging smuggling." A source stated.

Following discussions on how utilization of the N200 billion Commercial Agricultural Credit Scheme can boost development in various states, ACF’s NWC resolved to present a position paper on the issue to the Minister of Agriculture, Dr. Sayyadi Abba Ruma.

They further discussed other issues including the need for northern states’ governors to encourage micro finance banks along with the incessant violent conflicts and security threat caused by migration and desert encroachment in the largely arid North.

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."

http://www.ngrguardiannews.com/news/article03//indexn2_html?pdate=101009&ptitle=How%20Sanusi%20Allegedly%20Set%20Banks%20MDs%20Up

As soon as this scenario becomes obvious, I urge all southerners to sell off their shares in the affected banks and reinvest in other things. If the sacked Bank managers stole billions, the incoming hausas will steal trillions, in addition to their poor management skills

Hmmm This revelations are very serious

enemies of progress don start again. na for diaspora many of una go rot.

Nchara:

As soon as this scenario becomes obvious, I urge all southerners to sell off their shares in the affected banks and reinvest in other things. If the sacked Bank managers stole billions, the incoming hausas will steal trillions, in addition to their poor management skills

Billions and Trillions = all thieves . So which one is better, Nigeria generally is a funny place to do business.

Is there any end in sight to these theories?

If the northern elites are being persuaded to buy up shares of the affected banks why not encourage southern elites to do same?

If the north does not really have a bank of its own after the N25B consolidation exercise then it means that the south controls all the banks in Nigeria. If this is correct why didn't anyone complain about this?

Any one that wants to buy shares of the banks can do so and for those who must turn everything into tribalism one tribe must have more shares than other tribes.

The conspiracy theories are getting ridiculous and embarrassing especially from supposedly educated people.