Several depositors whose life savings would have been swept away under the guise of global financial crisis had their monies restored just at the nick of time.
Before Sanusi Lamido Sanusi was appointed governor of Central Bank of Nigeria (CBN) on June 4, 2009, nobody knew that a financial tsunami was in the offing. If what the apex bank authorities said before the appointment of Sanusi was anything to go by, Nigeria was insulated from the global financial crisis and, in fact, the nation's banks were some of the best in the world, with one of the most impressive Returns on Investment (RoI) at the capital market.
Funny enough, in spite of this hype, it took Sanusi only about two months to discover the rot that could have dragged the whole of the banking industry down.
In his popular speech delivered on August 14, 2009, Sanusi said, "A few Nigerian banks mainly due to the high concentration in their exposure to certain sectors (capital market and oil and gas being the prominent ones), but due to a general weakness in risk management, have continued to display signs of failure."
That was the first sign to indicate that the new helmsman after all meant business. The fall out of that speech was a special audit of the existing banks which in the first instance exposed five banks as "troubled banks." They were, however bailed to avoid a backlash on hapless depositors.
Bismarck Rewane, chief executive officer, Financial Derivatives, told BusinessDay in a telephone interview that the stewardship of the CBN governor could best be assessed by looking at how much he has achieved on the agenda he set.
It would be recalled for instance, that after the first sanitisation exercise that saw eight banks' managing directors and their executive directors removed from office, the second phase of his reforms was keyed into what he termed the '4-pillars'. These entailed strengthening the quality of banks, establishing financial sector stability, enabling healthy financial sector and ensuring the financial sector contributes to the real economy.
John Okolosi, a banker in Lagos, said the Central Bank had shown it could achieve the 4-pillars it set for itself. He, however, said the four goals set by the apex bank could only be achieved over time and not just in one year, as some people would want to do.
He acknowledged that the banks were gradually being strengthened with most of them whittling down their bloated non-performing loans.
Wale Abe, chief executive, Financial Market Dealers Association of Nigeria (FMDA), said, "The reforms so far have been able to stabilise the sector which had public confidence eroded and a destabilising effect on the various markets, especially the equity market.
"But aside from the relative stability now prevailing, there is a gradual restoration of confidence in the future of the industry," he said.
On stability, he said, the injection of liquidity as bail-out fund, helped to rejuvenate the waning confidence then. "Every other policy, one after the other and the increased collaboration and coordination of all the Financial Sector Regulatory Agencies, which he has also promoted, since assuming office have further led to strengthening of the sector. In addition to his policies, and apart from stabilising the market against volatility, the policies have also ensured improved risk management; principles and practice, promoted sound corporate governance practices. It's my opinion that all these will lead to future growth and financial stability," he observed.
Abe, however, insisted that these achievements were not without some side effects, but added that the benefits far outweighed whatever pains the industry has so far experienced. Sanusi, meanwhile, has also received kudos in the area of Assets Management Corporation of Nigeria (AMC) set up as an exit or resolution vehicle to assist in the recapitalisation of the rescued banks.
Some of the negative impacts of the reforms being felt by the economy, experts say, may be removed with the full implementation of the AMC when finally signed into law.
It is seen as one of the measures put in place to get banks resume lending again. At the same time, the issue of fixing the demand and supply sides of credit and need to reinforce/complement the role of the fiscal authorities to improve the business through an enabling environment by fixing gaps in infrastructure, security, power, anti-corruption, among others.
Taiwo Ayedun, managing director, CreditRegistry, said the performance of the governor in the past one year remain commendable.
"The governor is energetic. He hit the ground running and has displayed tremendous courage in prosecuting crucial issues around proper and adequate disclosures which are necessary for a healthy and functioning financial system," he said.
According to him, the central bank has focused on strong risk management, good corporate governance transparency and accountability.
He further added that the governor had increased the momentum on the adoption and use by banks of credit bureau information to make informed decisions in order to reduce credit defaults and expand credit.
"Going forward, the governor should endeavour to sustain the gains of the reforms and move the economy to the next phase such that banking touches the lives of ordinary people and the real sector of the economy," he said.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=11472:sanusis-one-year-a-bitter-truth-that-rescued-depositors-fund&catid=54:banking-finance&Itemid=326

Story story. . . . . . . Story!!!

Everybody has seen the results of Sanusi's actions!
Job losses everywhere. Capital Flight. Damaged investor's confidence. A devastating blow to Entrepreneurship. Credit averseness. Reduced interest rates on fixed deposit (damaging the much needed saving culture). Treasonable decision to give off our coveted national assets to colonial slave-masters. Numerous flip flops from Sanusi's oral cavity. A crying sisi of a Governor. An insensitive Ethno-religious, unqualified, Sudanocentric, merit deficient, quota beneficiary!

[b]Thank God Aganga has taken the centre stage. [/b]We can now see more confidence building in the economy as Aganga's assurances are beginning to get investors excited again. Every investor now knows that Sanusi's powers have been melted. He can only act on consultation with and approval from Aganga as Jonathan's representative.
At best, right now, Sanusi is just a figure head in our economy. More like the Queen of England. No real powers.

PapaBrowne:

Story story. . . . . . . Story!!!

Everybody has seen the results of Sanusi's actions!
Job losses everywhere. Capital Flight. Damaged investor's confidence. A devastating blow to Entrepreneurship. Credit averseness. Reduced interest rates on fixed deposit (damaging the much needed saving culture). Treasonable decision to give off our coveted national assets to colonial slave-masters. Numerous flip flops from Sanusi's oral cavity. A crying sisi of a Governor. An insensitive Ethno-religious, unqualified, Sudanocentric, merit deficient, quota beneficiary!

[b]Thank God Aganga has taken the centre stage. [/b]We can now see more confidence building in the economy as Aganga's assurances are beginning to get investors excited again. Every investor now knows that Sanusi's powers have been melted. He can only act on consultation with and approval from Aganga as Jonathan's representative.
At best, right now, Sanusi is just a figure head in our economy. More like the Queen of England. No real powers.

Brilliant!
Your strategy is insidiously sound! Blame everything bad that happened in Nigeria on Sanusi, and accredit every positive benefit from Sanusi's reforms to Aganga.
Even the Renaissance Professionals need to take lessons from you.

There is a silent majority that continually prays for the success of SANUSI.

Story story. . . . . . . Story!!!

Everybody has seen the results of Sanusi's actions!
Job losses everywhere. Capital Flight. Damaged investor's confidence. A devastating blow to Entrepreneurship. Credit averseness. Reduced interest rates on fixed deposit (damaging the much needed saving culture). Treasonable decision to give off our coveted national assets to colonial slave-masters. Numerous flip flops from Sanusi's oral cavity. A crying sisi of a Governor. An insensitive Ethno-religious, unqualified, Sudanocentric, merit deficient, quota beneficiary!

Thank God Aganga has taken the centre stage. We can now see more confidence building in the economy as Aganga's assurances are beginning to get investors excited again. Every investor now knows that Sanusi's powers have been melted. He can only act on consultation with and approval from Aganga as Jonathan's representative.
At best, right now, Sanusi is just a figure head in our economy. More like the Queen of England. No real powers.

Please stop this nonsense, Aganga along with his boss GJ were just at helms of the country barely 5 weeks now and you think they have already made efficient decisions that improved the economy of this nation. Even if you don't like the guy at least give credit where it belongs, Sanusi has at least brought transparency and trust to the Nigerian financial sector

texazzpete:

Brilliant!
Your strategy is insidiously sound! Blame everything bad that happened in Nigeria on Sanusi, and accredit every positive benefit from Sanusi's reforms to Aganga.
Even the Renaissance Professionals need to take lessons from you.

That is the problem with some Nigerians. They find it difficult to analyze issues without sentiments.

Afam:

That is the problem with some Nigerians. They find it difficult to analyze issues without sentiments.

Gayigaskia:



Please stop this nonsense, Aganga along with his boss GJ were just at helms of the country barely 5 weeks now and you think they have already made efficient decisions that improved the economy of this nation. Even if you don't like the guy at least give credit where it belongs, Sanusi has at least brought transparency and trust to the Nigerian financial sector

hehehehe. . . . I tire o!

At d risk of sounding bigotry, ve kinda noticed that jarus' staunch support for Sanusi is based solely on religious sentiments and not sound judgement. Even Greece and the other PIIGS countries didn't not discredit their banks the way Sanusi did ours. Personally,I think its a shame for any sound economists to argue in favour of d sadist called Sanusi.

Whatever crisis Sanusi thinks he rescued were created and made up by Sanusi so am simply not impressed.

Better for thousands of bankers to loose their jobs than for millions of Nigerian depositors to loose their deposits (including the thousand bankers). A stitch in time (be it good or bad) saves nine. All those MYOPIC haterz of SLS should go and hang themselves cos the man aint going nowhere.

With 4 trillion naira debts, loads of unemployed youths, a clueless central bank changing policies every mico second, d future looks grim.

mikeansy:

Whatever crisis Sanusi thinks he rescued were created and made up by Sanusi so am simply not impressed.

Oh yeah!. . So Sanusi gave out bad loans to fraudulent individuals including his family members and 'ghost' associates without proper collateral and his actions of 2009/2010 led to the crash of the capital market and weakening of those banks amongst others (which all happened clearly b4 2009)?. .Now he has come back as a cheap HERO to reverse all his earlier moves in order to impress Nigerians and gain cheap points. . . _{and probably he plans contesting as his state Governor in 2015}. . .I see!! . . I'm really impressed by your insinuations

At d risk of sounding bigotry, ve kinda noticed that jarus' staunch support for Sanusi is based solely on religious sentiments and not sound judgement. Even Greece and the other PIIGS countries didn't not discredit their banks the way Sanusi did ours. Personally,I think its a shame for any sound economists to argue in favour of d sadist called Sanusi.   

Knowing you very well, I wont give a detailed reply to you. I've gone beyond replying a dumbhead bigot like you. Your only problem with me is that I'm a Muslim. And if you cross my path, I'll finish you on NL.

Jarus:


Knowing you very well, I wont give a detailed reply to you. I've gone beyond replying a dumbhead bigot like you. Your only problem with me is that I'm a Muslim. And if you cross my path, I'll finish you on NL.

You could have ignored his post .The statement in bold is not becoming of you

Xavier.:

At d risk of sounding bigotry, ve kinda noticed that jarus' staunch support for Sanusi is based solely on religious sentiments and not sound judgement. Even Greece and the other PIIGS countries didn't not discredit their banks the way Sanusi did ours. Personally,I think its a shame for any sound economists to argue in favour of d sadist called Sanusi.  

There is no risk here, you are clearly a religious bigot, not sounding like one.

Did Sanusi save depositors funds belonging to only Muslims?

Why don't you forget about the religion of Jarus for a moment and address his comments or opinions with facts, logic and common sense?

You could have ignored his post .The statement in bold is not becoming of you

There is no risk here, you are clearly a religious bigot, not sounding like one.

Did Sanusi save depositors funds belonging to only Muslims?

Why don't you forget about the religion of Jarus for a moment and address his comments or opinions with facts, logic and common sense?

Thank you guys jare. I know him very well since he was bearing the username Yemmyse far back 2008. He follows me around and his only problem with me is that I'm a Muslim.

I'd better ignored him.

Afam:

There is no risk here, you are clearly a religious bigot, not sounding like one.

Did Sanusi save depositors funds belonging to only Muslims?

Why don't you forget about the religion of Jarus for a moment and address his comments or opinions with facts, logic and common sense?

Afam did you read any business course in school?i ask this question because now you seem to be in the electronic side of things(inverters etal) but there was a post of yours i read in 2007 or so where you seemed to be lambasting the share craze back then caliing it 'kalo kalo business'.how did you know about the deception back then when other people where just rushing to buy the shares?

asha 80:

Afam did you read any business course in school?i ask this question because now you seem to be in the electronic side of things(inverters etal) but there was a post of yours i read in 2007 or so where you seemed to be lambasting the share craze back then caliing it 'kalo kalo business'.how did you know about the deception back then when other people where just rushing to buy the shares?

Nope. I read Chemical Engineering. Worked as a process engineer and project engineer in the oil and gas before calling it quits with paid employment due to the hypocrisy and sycophancy in the work place.

I am a realist and talk about what I understand hence my position on shares that I correctly labeled kalo kalo when people where rushing it. I was a chronic gambler in the university and gambled so well that people would come from other universities to provide funds just for me to gamble for them and I rarely disappointed them.

So, I know for a fact what gambling means though I quit gambling the day I left the university.

And it is the same thing with life generally, we could choose to allow sentiments guide how we think or how we see things but in the final analysis the facts of anything have little or nothing to do with sentiments.

As a programmer I can tell you that you cannot log on with your username on this forum with a wrong password because the program has been written to grant you access only when the username and password entered match what is stored in the database. Now, the program does not and in fact is not interested in knowing whether you forgot the password or whether you are in a hurry or that your life depended on logging in this minute. As long as you don't enter the correct thing you will remained locked out.

Guess I have answered/addressed your question/comments.

Thank God Aganga has taken the centre stage. We can now see more confidence building in the economy as Aganga's assurances are beginning to get investors excited again. Every investor now knows that Sanusi's powers have been melted. He can only act on consultation with and approval from Aganga as Jonathan's representative.
At best, right now, Sanusi is just a figure head in our economy. More like the Queen of England. No real powers

.
impressive

the good signs ure seeing is as a result of someone who just resumed in about a month ago

not SLS who has been building the blocks. . . . .

youre the smartest dude on NL for real, no pun here

Afam:

Nope. I read Chemical Engineering. Worked as a process engineer and project engineer in the oil and gas before calling it quits with paid employment due to the hypocrisy and sycophancy in the work place.

I am a realist and talk about what I understand hence my position on shares that I correctly labeled kalo kalo when people where rushing it. I was a chronic gambler in the university and gambled so well that people would come from other universities to provide funds just for me to gamble for them and I rarely disappointed them.

So, I know for a fact what gambling means though I quit gambling the day I left the university.

And it is the same thing with life generally, we could choose to allow sentiments guide how we think or how we see things but in the final analysis the facts of anything have little or nothing to do with sentiments.

As a programmer I can tell you that you cannot log on with your username on this forum with a wrong password because the program has been written to grant you access only when the username and password entered match what is stored in the database. Now, the program does not and in fact is not interested in knowing whether you forgot the password or whether you are in a hurry or that your life depended on logging in this minute. As long as you don't enter the correct thing you will remained locked out.

Guess I have answered/addressed your question/comments.

ok just that i felt you might have giving me some 'economic analysis' as to why you considerd it kalo kalo business at that time which turned to be true  because in that thread you seemed to be the only dissenting voice there.

asha 80:

ok just that i felt you might have giving me some 'economic analysis' as to why you considerd it kalo kalo business at that time which turned to be true  because in that thread you seemed to be the only dissenting voice there.

Trust me if you forget about sentiments and choose to base your analysis on facts and logic you will arrive at the same conclusions.

For someone to make money someone else must lose the money (whether buying and selling or stealing or fraud) and if you don't know how the money is coming in (in schemes) then you may be one of those providing the money that others are making.

For someone to make money someone else must lose the money (whether buying and selling or stealing or fraud) and if you don't know how the money is coming in (in schemes) then you may be one of those providing the money that others are making.

you mean buying and selling (trading) stocks or investing medium/long term in profitable companies?

when u invest your money over a reasonable time frame, that wouldnt fall under your kalo kalo theories . . . .

tkb417:


you mean buying and selling (trading) stocks or investing medium/long term in profitable companies?

when u invest your money over a reasonable time frame, that wouldnt fall under your kalo kalo theories . . . .

The quote wasn't related to kalo kalo. Just stating the fundamental theory of money making.

The kalo kalo was directed at shares.

Jarus:


Knowing you very well, I wont give a detailed reply to you. I've gone beyond replying a dumbhead bigot like you. Your only problem with me is that I'm a Muslim. And if you cross my path, I'll finish you on NL.

Jarus, no do this thing wey you do again o!
the guy just set trap for you and with all your intelligence you go fall inside.
You don big pass that kind thing.

anyway, Naijaking1 is on his way for a dose of the usual.

Jarus, no do this thing wey you do again o!
the guy just set trap for you and with all your intelligence you go fall inside.
You don big pass that kind thing.

You could have ignored his post .The statement in bold is not becoming of you

Sorry for disappointing you guys jare. The guy provoked me.
Statement retracted.

The global financial crisis was a tsunami of some sort. Most economies were affected and some of them went burst as a result. As events unfolded, several people were in denial and pointed fingers elsewhere. Senator McCain said that the US economy was solid.

In quick succession, Leyman bros, Morgan Stanley, Fannie Mai, Freddie, HBOS, Northern Rock, etc gasped for breadth and fell, but some ostriches out there were quick to point at Russia and blame their (Russian) stock woes on their actions in Georgia while pretending that western economies were less affected. In no time at all, everyone was looking at China and praying that the Chinese economy did not falter. The global crisis was fully on, at full speed.

NSE was also on its knees, as many stocks became penny stocks. Bank shares took a major hit in line with the global scenario. However, it was remarkable that the banks did not go under or needed to be rescued at the height of the crises. This was mainly as a result of the consolidation exercise by Soludo and also for the fact that Nigeria has cash driven economy and the mortgage sector is almost non-existent. The banks survived.

Soludo left and when Sanusi entered the scene, he found that four banks had cooked their books and he took some decisive actions. Before we judge Sanusi, let us consider that it is his responsibility to ensure that banks operate within a set guideline, in order to protect the shareholders and depositors.

Before we vilify Soludo, let us also consider that those banks were four out of many and the fact that they never sought for bailout, met their obligations to their shareholders and depositors were enough reason for Soludo to buy the books they presented as their financial positions. It is one thing to cook books but quite another to pay dividends, salaries, depositors money, recurrent expenditure and other overhead costs.

Let us consider the position of those banks. Who are/were their debtors? Government contractors who are still owed by the govt, Business moguls, Directors or who? Did they take adequate securities or did they go the gambling way, which backfired?

My take on this issue:

1.Sanusi is acting as he best believes would ensure the stability of the banks and he has nothing to gain by consciously wrecking the economy.
2.He should have applied discretion while dealing with the situation and he would have still achieved the same result without putting the economy at more risk than was necessary, because we are in an era where even a rumour from the pepper market is enough to cause a panic in the economy, how much more when the gist comes from the horse himself.

3.He should have given the said banks the opportunity to try and consolidate their financial positions before acting in a unilateral manner.

4.He should be allowed to execute his working agenda; after all we cannot blame him for finding cooked books. The blame should be on those that cooked the books.

I am still undecided as to the direction he would eventually take the banks/economy. Everyone has his style and I believe that he is from the old school, the conservative school.

I am more or less a bullish person and believe that you need to dare to win. However, I accept that bullish ways may not always be the best approach as it is littered with risks.

I would expect that he is allowed to chart his own way forward while trying to get banks to start lending again, keeping the interest rates at affordable level, consolidating the banking industry and adopting policies to target small and medium scale industries.

With regards to the original post, there is nothing to suggest that depositors would have lost their funds if Sanusi had given the banks the opportunity to seek for funds if they were in trouble.