This topic is probably been over-flogged, but with each new information, it becomes even more interesting to follow the case. I hope the moderators, spam-blot, or whatever would let it see the light of day.


[size=18pt]Why Gov Saraki, Sanusi hijacked Intercontinental Bank[/size] - [size=14pt]Akingbola[/size]
Published on 27 September 2010 with 7 comments

FELIX NWANERI


FORMER Group Managing Director and Chief Executive of Intercontinental Bank Plc, Dr. Erastus Akingbola, yesterday called on the federal government to probe what he described as reckless destruction of the banking industry by a handful of men who are still pretending that they are working in the nations interest.

Akingbola, who is being prosecuted by the Economic and Financial Crimes Commission (EFCC) over alleged misappropriation of N364 billion belonging to the bank faulted the ongoing banking reform by the Central Bank of Nigeria (CBN), saying it was aimed at hijacking other people�s businesses by a cabal.

In a statement at the weekend, Akingbola, who blamed his ordeal on Kwara State governor, Dr. Bukola Saraki; CBN governor Lamido Sanusi and the CBN-appointed incumbent Managing Director/CEO of Intercontinental Bank Mahmoud Lai Alabi, also called for the return of the bank to its shareholders.
Akingbola, it would be recalled recently returned to the country to face charges of fraud levelled against him by the EFCC. But describing the allegations against him as absurd, the former Intercontinental Bank boss said: I am happy that I am now in the law courts where the truth, by the grace of God, will surface. I repeat that I did not steal or misappropriate one kobo from Intercontinental Bank Plc throughout my 21 years service to the bank.

He accused the Alabi-led management of sinister motive, saying: the numerous pointers to the sinister motive behind the take-over of Intercontinental Bank by the trio was that Mr. Alabi, barely few days after assumption of office as MD/CEO, fraudulently wrote off N7.5 billion out of the N8.5 billion loan Bukola Saraki and his companies took from the bank.
Describing the write-off as a cash gift, Akingbola questioned if the action was in the interest of the depositors that the CBN governor claims that he is protecting, adding that the Alabi management has been busy spending money he left in the bank.

Part of the statement read:Just like any other bank trading in the industry, Intercontinental Bank had Interbank takings of N73 billion which is more than acceptable for a N1.6 trillion bank. However, today, under the Mahmoud Lai Alabi management, the bank owes the CBN over N100 billion and owing the Interbank market over N300 billion, showing a massive exposure of N400 billion in less than one year of the take-over; and Sanusi is not calling for Lai Alabis head for obvious reasons.

Even if the bank was in trouble, as alleged by Lamido Sanusi, why were its shareholders and Management not given the same opportunity Unity Bank and
Wema Bank was given to recapitalise their banks? I think it is now clear that the motive behind this so-called Banking Reform was simply to hijack other people�s businesses. It is clear that Alabi has been sent to the bank to loot it for his mentors and destroy the Akingbola Legacy.

Alabi is paying himself N7 million per month (N84 million per year), yet he is still using the Banks money to fuel his car and generators. I never earned up to N5 million per month throughout my 21 years of building the bank.
Lai Alabi has bought for himself and each executive director 3 bulletproof jeeps each. I only used two official cars at any one time throughout my 21 years stay in the bank. Lai Alabi and his Executive Directors had granted themselves Housing loans of N100 million each having worked for just a few months.

Before I left the Bank, we had 350 branches in Nigeria, 40 branches in Ghana, one UK office and ten stand-alone subsidiaries. Now Mahmoud Lai Alabi is selling off the Branches and other assets of the bank with impunity and diverting the proceeds.
Before I left the Bank, we had 12,000 members of staff. Now Mahmoud Lai Alabi has retrenched over 3,000 of them (and he is set to sack more). I think employment provision should be a major measure of an economy that is doing well.

Before I left the Bank, Intercontinental was an international bank that every Nigerian, and indeed lovers of the Black race, that arrived at London Heathrow Airport, Terminal 5 was proud of. Now Lai Alabi wants to turn the Bank into a Regional Bank restricted to the south-west of Nigeria alone. These are the same people who are appealing to banks from other nations to come and buy over Nigerian banks but are busy trying to shrink Nigerian banks.

Better believe it, needs to investigate

I am of the opinion that this issue can never be over-flogged.  The truth must be told no matter how bitter or unpalatable is it to some people.

While I am no fan of Akingbola but almost all of the issues he raised here are VERIFIABLE and should be probed by a neutral body.  I won't be surprised if Sanusi is found wanting going by the haste and seeming vendetta-like manner in which he went about a very sensitive task. If Akingbola and others could be tried for management failure, Sanusi should also be tried for regulatory failure.

team saraki, over to you

Pukkah:

I am of the opinion that this issue can never be over-flogged.  The truth must be told no matter how bitter or unpalatable is it to some people.

While I am no fan of Akingbola but almost all of the issues he raised here are VERIFIABLE and should be probed by a neutral body.  I won't be surprised if Sanusi is found wanting going by the haste and seeming vendetta-like manner in which he went about a very sensitive task. If Akingbola and others could be tried for management failure, Sanusi should also be tried for regulatory failure.

Contrary to what many might think, I'm only a fan of a generic Akingbola, and the Ibrus of this World who started some form of small business, and then nurtured them into a big company that attracted professional and personal jealousy, followed by a calculated stealing take-over strategy by political and professional enemies. If this personal vendatta is not checked, it will spell doom for potential foreign, domestic investors in our economy. For the small small businesses, the mom-pop business, the roadside business, and the family business, there must be a government guarantee that there investment will not only be protected, but that nonbody, under any guise will ever steal their companies.

naijaking1:

Contrary to what many might think, I'm only a fan of a generic Akingbola, and the Ibrus of this World who started some form of small business, and then nurtured them into a big company that attracted professional and personal jealousy, followed by a calculated stealing take-over strategy by political and professional enemies. If this personal vendatta is not checked, it will spell doom for potential foreign, domestic investors in our economy. For the small small businesses, the mom-pop business, the roadside business, and the family business, there must be a government guarantee that there investment will not only be protected, but that nonbody, under any guise will ever steal their companies.

One thing is clear, there is more to the manner in which Sanusi went about the whole process. I am also in support of strong systems where equity and fairness are allowed to prevail and flourish.

I see no reason why Sanusi would classify and re-classify loans just to make them non-performing so that the capital adequacy ratios of the target banks would fall below the thresold. This is criminal!

Alabi is paying himself N7 million per month (N84 million per year), yet he is still using the Banks money to fuel his car and generators. I never earned up to N5 million per month throughout my 21 years of building the bank.
Lai Alabi has bought for himself and each executive director 3 bulletproof jeeps each. I only used two official cars at any one time throughout my 21 years stay in the bank. Lai Alabi and his Executive Directors had granted themselves Housing loans of N100 million each having worked for just a few months.

Before I left the Bank, we had 350 branches in Nigeria, 40 branches in Ghana, one UK office and ten stand-alone subsidiaries. Now Mahmoud Lai Alabi is selling off the Branches and other assets of the bank with impunity and diverting the proceeds.
Before I left the Bank, we had 12,000 members of staff. Now Mahmoud Lai Alabi has retrenched over 3,000 of them (and he is set to sack more). I think employment provision should be a major measure of an economy that is doing well.

so because of N7.X billion Saraki is after this reverend?

What's the going rate for a MD per month in nigerian banks? isnt it common that 'administrators or contracted executive get perks when there's a takeover or transition?

I cant belive this Pastor is was made CIBN topman when ran to London didn't you see your mate closing branches and statistics for unemployment as a result of recession?


2 official cars and a private jet

Dis Guy:


so because of N7.X billion Saraki is after this reverend?

What's the going rate for a MD per month in nigerian banks? isnt it common that 'administrators or contracted executive get perks when there's a takeover or transition?

I cant belive this Pastor is was made CIBN topman when ran to London didn't you see your mate closing branches and statistics for unemployment as a result of recession?
2 official cars and a private jet

That's a good question, if you remember, that was one of the alleged "sins" of the 5 former bank CEOs: They were said to be living large, "getting paid too much".
If Alabi is making more than 200% of what his predicessor made, then it will be wise to ask whether inflation has risen more than 200% over the same period in one year? What's the justification for such a mega pay on the backs of bank shareholders, owners, and the governement?

naijaking1:

If Alabi is making more than 200% of what his predicessor made, then it will be wise to ask whether inflation has risen more than 200% over the same period in one year?

Whats N7m/N5m?

I hope not 200% on your calculator.

I will never hold brief for any bank MD including Alabi. Men of good character are few and far between in Nigerian Business.

Ibime:

Whats N7m/N5m?

I hope not 200% on your calculator.

I will never hold brief for any bank MD including Alabi. Men of good character are few and far between in Nigerian Business.

You're right, I meant more than 120%
However, the point should not be lost by the fact that the one brought in to "rescue" this bank has turned out to sap the company out of its remaing life blood, and unfortunately without any accountability to the people who actually own the corporation. Once again, without rushing to conclusions, let's just wait for a thorough investigation. We can all learn from this episode.

I really dont see the involve of Saraki in this. the truth the 4 other bank did not have saraki workers in them. So saraki could not be the person behind this. I dont see the connection in this. Ceci Ibru is not saying saraki is the one.

It is hard to tell Akingbola , but other people who were his enermy where the one , who hated the success of the banks . One reason I assume the bank was taken over was because other banks were not doing well and had better connection with the govt to destroy the banks.

The issue is, akingbola does not need to go to Jonathan to get control of a bank, if he is the major shareholder. The nigeria law give a time limit for CBN to hold on to the bank. And that law state clearly that CBN must give back the bank to the original shareholders. And CBN times is nearly over, if not over already.

Even at the moment, all shareholders can remove anyone they want. if i am correct.

Thank god Akingbola ran away and got enough time to organise a defense. He is telling an incredibly damning story.

the real truth is. saraki was not the one behind the bank take over. it was just that the banks were doing well and some people in this govt wanting piece of it. That was all. but the federal govt should return people bank back to them.

if it was saraki he would have given him back the bank if he is the one given him trouble.

but i do not think he is the one.

Becomrich0:

I really dont see the involve of Saraki in this. the truth the 4 other bank did not have saraki workers in them. So saraki could not be the person behind this. I dont see the connection in this. Ceci Ibru is not saying saraki is the one.

It is hard to tell Akingbola , but other people who were his enermy where the one , who hated the success of the banks . One reason I assume the bank was taken over was because other banks were not doing well and had better connection with the govt to destroy the banks.

The issue is, akingbola does not need to go to Jonathan to get control of a bank, if he is the major shareholder. The nigeria law give a time limit for CBN to hold on to the bank. And that law state clearly that CBN must give back the bank to the original shareholders. And CBN times is nearly over, if not over already.

Even at the moment, all shareholders can remove anyone they want. if i am correct.

I'm surprised you sound so sure, even when you're not sure
Have you heard from Cecilia Ibru yet?
Why jump to all these unsubstantiated conclusions

9ijaMan:

Has Akingbola cleared himself from the corrupt allegations slammed against him by CBN & EFCC? This man needs to clear his own name first instead of all these mudslinging which will not result in anything.

Is there anything legally wrong with what Akingbola is doing? Does it mean he has to keep quiet until the case against him is done with? Can't the two cases {the one against him and the issues (objective and not subjective) he is bringing against Sanusi} be heard concurrently?

Let him approach the courts if he believes he has been wronged, trying to use the papers and appealing to the AGF will not work.

The way Sanusi went about with the dismissal of the MDS last year i knew something was fishy. Even though this turns out to be a pack of lies I’m still suspicious of this guy.

yeswecan:

The way Sanusi went about with the dismissal of the MDS last year i knew something was fishy. Even though this turns out to be a pack of lies I’m still suspicious of this guy.

from: http://renaissanceprofessionals.com/2010/08/13/sanusi-vs-the-nigerian-economy-the-parable-of-the-chickens-and-the-eggs/

Sanusi vs the Nigerian Economy: The Parable of the Chickens and the Eggs.

What if your job were to deliver fresh chicken eggs and some birds from a large farm to the nearby city using a small delivery van and for a long time you have done this job quite well. But in an unusual period of bad foggy weather (global financial crises) you and just about all your contemporaries have a bad run with multiple road incidents losing some measure of your wares (mostly the eggs, hardly any birds) in varying degree. The market umpire then comes and lays the blame on you and your colleagues, incarcerating some of them and taking them out of the business mostly for losing some eggs. The wisdom you get from this chicken-and-egg illustration is that it is safe shuttling the birds from the farm to the city going forward, but hardly the eggs (except at a very high price to be paid by the farm and on a very selective basis), if you want to remain in the business.



The eggs are bank loans and the birds are bank deposit. Ever since the CBN Governor Sanusi Lamido Sanusi adopted hostage tactics in dealing with credit challenges that reverberated through the Nigerian banking system as nation after nation succumbed to the global financial meltdown, a creeping but very dangerous business mode has overshadowed the Nigerian banking industry; bankers have switched from a traditional otherwise healthy risk aversion (taking risk for commensurate returns) mode to a dangerous and economically cancerous loss aversion mode (taking little or no risk at all for fear of losing money).



The traditional wisdom of banking is for banks to mobilize deposits from individuals, businesses and government units with excess funds and lend these funds to other individuals, businesses and government units who have need for them, while losing a tolerable small percentage of the funds they advance in the process which is more than covered by the interest and commission income they charge on the loans. This is what is called financial intermediation and it happens smoothly when bankers operate with a mindset of risk aversion. However, when bankers are thrown into panic mode they switch from a risk-averse mindset to loss-averse mindset with chronic calamitous consequences for the economy.



Strong manifestations that the economy has entered a dangerous loss-averse psyche are the glaring dichotomy between lending and borrowing rates. [b]Under this CBN regime, deposit rates on all tenors have crashed to all time low of less than 1% while some banks still accept huge deposits for only 3% or 4% interest rate. If these low rates were evidence of abundance of funds in the economy, then one would expect lending rates to be 600 to 900 basis points above average deposit rates (i.e. 10 to 13% rates on loans). [/b]However, in a recent CBN publication of banks lending rates for April 2010, most banks had their prime lending rates at between 18% and 21%, while their standard lending rates range from 23% to 28%. The story hasn’t changed, even as we write.



It is therefore evident that what banks are doing is to ask depositors to take their deposit away by offering deposit rates that are much less than current inflation rate (CBN recently reported that inflation rate is down to 8.3%) while at the same time discouraging loan users from borrowing by charging pre-July 2004 interest rates on loans. The bankers don’t just want to shuttle eggs anymore. They would still shuttle the birds (deposits) albeit reluctantly. This is financial disintermediation and it can bring any nation to its knees just the same way cancer creeps on its victim. Mallam Sanusi Lamido doesn’t know this and way beyond 2020, his very poor economics would still not have opened his eyes to this danger.



It does amount to activating the self destruct button when the[b] CBN Governor through “as the spirit directs” ill advised pedestrian policies maliciously foster a debilitating credit crunch on the economy he is meant to manage. Capricious or inadvertent, this amounts to economic terrorism and may have to be dealt with using the overriding doctrine of necessity that recently saved the nation from a dragging but dangerous leadership crisis[/b]. Even the entry of AMCON won’t bring the credit crunch in the country to an end because until the recent psyche of loss aversion is removed from the banking system, banks would still not lend to the private sector.



The all-knowing CBN Governor recently acknowledged that credit to the private sector has declined over the year, but in his usual finger pointing manner, the Federal Government (FG) is the new culprit. His hollow claim is that banks couldn’t lend more to the private sector because the manufacturing sector that should absorb more credit could not do so because the FG has not provided the enabling infrastructure for them to operate. This is rather very poor economics being displayed by a man expected to manage the economy of the most populated country in Africa. What Mallam Sanusi Lamido is saying in essence is that the private sector has reached its credit absorption limit for now except the manufacturing sector expands.



The cost of this CBN-made credit crunch keeps rising with every tick of the clock and unemployment gets worse because businesses cannot recruit due to poor patronage caused by unavailability of credit to their customers from their bankers. Banks’ balance sheets get worse because businesses are not able to service existing loans due to poor sales as their customers don’t have money to buy because they can’t get bank loans and this vicious circle goes on and on like that further amplified at every stage by the multiplier effect. This is the classical death by a thousand stabs. That is what the Nigerian Economy is going through right now and this is economic terrorism.



It’s been said time and again that if Nigerian policemen are ever able to misfire with their rifles as often as the Nigerian CBN Governor has misfired with his policies, they may not have anyone to police by now. One day, it will be said and the cost will be counted; that right in the middle of a global financial meltdown, Nigeria was unfortunate to entrust its economy to a man who worked so assiduously to foster economic underdevelopment on her by violating what most central bankers know so well; that you never jump into an abyss just to find out how deep it really is. It does seem we are in this already, but we must get out fast else the very inept Mallam Sanusi Lamido will be our collective doom as a nation!!!

hercules07:

Let him approach the courts if he believes he has been wronged, trying to use the papers and appealing to the AGF will not work.

Trying to use the papers was exactly Sanusi did for more than 1 year, and nobody challanged him. He went on roadshows, convincing people who didn't have the criticial mind to question his motives and means, now you think one of those he wanted shot at sight shouldn't do whatever he can to present his own side of the story
This is exactly why we're not developing as a society, even the ordinary man doesn't appreciate justice, especially when it's been denied another person.

I wonder where the hell SAGAMITE is. He should come and defend his mentor Sanusi. I can see some people writing that Akingbola should bring evidence that he is right. Mennnn, I beleive the man doenst write or talk unless he is given a go ahead by his counsel (fagoungbe, tarfa and co). So, as far as I am concerned, he has all the evidences. He has now taken the battle to Sanusi and Saraki, so let them sue him for defamation of chararcter if he is lying. Let us see how it goes. I cannot shout now.

naijaking1:

Trying to use the papers was exactly Sanusi did for more than 1 year, and nobody challanged him. He went on roadshows, convincing people who didn't have the criticial mind to question his motives and means, now you think one of those he wanted shot at sight shouldn't do whatever he can to present his own side of the story
This is exactly why we're not developing as a society, even the ordinary man doesn't appreciate justice, especially when it's been denied another person.

Sanusi was not taking out adverts in the papers to rubbish anybody, did you miss some of the hatchet jobs Vanguard and Guardian newspapers were doing on Sanusi? Why did Akingbola run away when he had all the evidences, why did he not stay like Ibru and the others?
Let the man tell us how he became richer than his bank, did he buy all of his properties with his monthly salary, he should not tell us stories jare, Sanusi should have allowed his bank to fail instead of bailing them out, then all the people supporting Akingbola now will be busy looking for jobs or doing business with the 100K that NDIC would have given them.

Sanusi is pursuing a northern agenda

hercules07:

Sanusi was not taking out adverts in the papers to rubbish anybody, did you miss some of the hatchet jobs Vanguard and Guardian newspapers were doing on Sanusi? Why did Akingbola run away when he had all the evidences, why did he not stay like Ibru and the others?
Let the man tell us how he became richer than his bank, did he buy all of his properties with his monthly salary, he should not tell us stories jare, Sanusi should have allowed his bank to fail instead of bailing them out, then all the people supporting Akingbola now will be busy looking for jobs or doing business with the 100K that NDIC would have given them.

Ignorance is a disease and it's unfortunate that even the youths of today are digging themselves in the same hole our fathers dug for themselves. If Sanusi had not intervened when he did, I would not have lost a dime, 'cos I had virtually all my Naira in one of the 4 performing banks. However, can I say same for the rest of other innocent Nigerians.

Pukkah:

from: http://renaissanceprofessionals.com/2010/08/13/sanusi-vs-the-nigerian-economy-the-parable-of-the-chickens-and-the-eggs/

Sanusi vs the Nigerian Economy: The Parable of the Chickens and the Eggs.

What if your job were to deliver fresh chicken eggs and some birds from a large farm to the nearby city using a small delivery van and for a long time you have done this job quite well. But in an unusual period of bad foggy weather (global financial crises) you and just about all your contemporaries have a bad run with multiple road incidents losing some measure of your wares (mostly the eggs, hardly any birds) in varying degree. The market umpire then comes and lays the blame on you and your colleagues, incarcerating some of them and taking them out of the business mostly for losing some eggs. The wisdom you get from this chicken-and-egg illustration is that it is safe shuttling the birds from the farm to the city going forward, but hardly the eggs (except at a very high price to be paid by the farm and on a very selective basis), if you want to remain in the business.



The eggs are bank loans and the birds are bank deposit. Ever since the CBN Governor Sanusi Lamido Sanusi adopted hostage tactics in dealing with credit challenges that reverberated through the Nigerian banking system as nation after nation succumbed to the global financial meltdown, a creeping but very dangerous business mode has overshadowed the Nigerian banking industry; bankers have switched from a traditional otherwise healthy risk aversion (taking risk for commensurate returns) mode to a dangerous and economically cancerous loss aversion mode (taking little or no risk at all for fear of losing money).



The traditional wisdom of banking is for banks to mobilize deposits from individuals, businesses and government units with excess funds and lend these funds to other individuals, businesses and government units who have need for them, while losing a tolerable small percentage of the funds they advance in the process which is more than covered by the interest and commission income they charge on the loans. This is what is called financial intermediation and it happens smoothly when bankers operate with a mindset of risk aversion. However, when bankers are thrown into panic mode they switch from a risk-averse mindset to loss-averse mindset with chronic calamitous consequences for the economy.



Strong manifestations that the economy has entered a dangerous loss-averse psyche are the glaring dichotomy between lending and borrowing rates. [b]Under this CBN regime, deposit rates on all tenors have crashed to all time low of less than 1% while some banks still accept huge deposits for only 3% or 4% interest rate. If these low rates were evidence of abundance of funds in the economy, then one would expect lending rates to be 600 to 900 basis points above average deposit rates (i.e. 10 to 13% rates on loans). [/b]However, in a recent CBN publication of banks lending rates for April 2010, most banks had their prime lending rates at between 18% and 21%, while their standard lending rates range from 23% to 28%. The story hasn’t changed, even as we write.



It is therefore evident that what banks are doing is to ask depositors to take their deposit away by offering deposit rates that are much less than current inflation rate (CBN recently reported that inflation rate is down to 8.3%) while at the same time discouraging loan users from borrowing by charging pre-July 2004 interest rates on loans. The bankers don’t just want to shuttle eggs anymore. They would still shuttle the birds (deposits) albeit reluctantly. This is financial disintermediation and it can bring any nation to its knees just the same way cancer creeps on its victim. Mallam Sanusi Lamido doesn’t know this and way beyond 2020, his very poor economics would still not have opened his eyes to this danger.



It does amount to activating the self destruct button when the[b] CBN Governor through “as the spirit directs” ill advised pedestrian policies maliciously foster a debilitating credit crunch on the economy he is meant to manage. Capricious or inadvertent, this amounts to economic terrorism and may have to be dealt with using the overriding doctrine of necessity that recently saved the nation from a dragging but dangerous leadership crisis[/b]. Even the entry of AMCON won’t bring the credit crunch in the country to an end because until the recent psyche of loss aversion is removed from the banking system, banks would still not lend to the private sector.



The all-knowing CBN Governor recently acknowledged that credit to the private sector has declined over the year, but in his usual finger pointing manner, the Federal Government (FG) is the new culprit. His hollow claim is that banks couldn’t lend more to the private sector because the manufacturing sector that should absorb more credit could not do so because the FG has not provided the enabling infrastructure for them to operate. This is rather very poor economics being displayed by a man expected to manage the economy of the most populated country in Africa. What Mallam Sanusi Lamido is saying in essence is that the private sector has reached its credit absorption limit for now except the manufacturing sector expands.



The cost of this CBN-made credit crunch keeps rising with every tick of the clock and unemployment gets worse because businesses cannot recruit due to poor patronage caused by unavailability of credit to their customers from their bankers. Banks’ balance sheets get worse because businesses are not able to service existing loans due to poor sales as their customers don’t have money to buy because they can’t get bank loans and this vicious circle goes on and on like that further amplified at every stage by the multiplier effect. This is the classical death by a thousand stabs. That is what the Nigerian Economy is going through right now and this is economic terrorism.



It’s been said time and again that if Nigerian policemen are ever able to misfire with their rifles as often as the Nigerian CBN Governor has misfired with his policies, they may not have anyone to police by now. One day, it will be said and the cost will be counted; that right in the middle of a global financial meltdown, Nigeria was unfortunate to entrust its economy to a man who worked so assiduously to foster economic underdevelopment on her by violating what most central bankers know so well; that you never jump into an abyss just to find out how deep it really is. It does seem we are in this already, but we must get out fast else the very inept Mallam Sanusi Lamido will be our collective doom as a nation!!!

The author of this article is at best a financial illiterate. The root cause of the current financial crises in the US and most of the world is due to the fact that most Americans live beyond their means and when the crash occurred they could not sustain their credit based lives. These were countries where interest rates were single digits even before the crises.

The article author's  claim that Sanusi's policies are inimical to the Nigerian economy is laughable and absolutely ludicrous. In reality what the so called big banks do in 9ja is to lend to the very rich at extremely low rates (as low as 4%) and lend to the common masses at high lending rates ranging from 17 to about 30%.  These banks were using the money from poor guys like myself to make the rich get richer, while they slam exorbitant rates on peasants to make it next to impossible for them to pay back.

About a month ago while chatting with a friend of mine who's fully into the oil biz, he revealed this to me when I asked him how he's coping with the high lending rates in 9ja. In fact I told him he could source for loans outside Nigeria from Europe or even the middle east where the rates are rarely up to 7%, and to my utter amazement he simply said he does not need to get loans from outside the shores of 9ja as he gets his loans at rates as low a 4% from 9ja banks.

He also confirmed that the bigger the size of your business, the better your bargaining power to get better lending rates from 9ja banks. So where does this live the common man.
It's the few coins which the common men put in these banks that bankers lend to the super rich at friendly rates and drive away the small scale to medium scale businesses with incredibly high rates.

By the way Nigeria has always had one of the highest lending rates in the world. Hence the essence of this guy's article is lost in his biased mind against Sanusi.

seanet02:

Sanusi is pursuing a northern agenda

Statements like this tells a lot about how financially intelligent people like you are! Stop bringing up nepotism in every single discuss about the problems we face. Come up with reasonable arguments and solutions otherwise, it better you keep quiet. It's not a must for you to punch your key board. You can read and learn from others.

Yes, yes, and yes.
Ignorance is a disease.
I beg look up the meaning of credit score and credit ratings, so that you can better understand why a bank may lend at different interest rates to different cadres of customers.
It's ok to be ignorant, but please don't be loud about it.

9ijaMan:

Ignorance is a disease and it's unfortunate that even the youths of today are digging themselves in the same hole our fathers dug for themselves. If Sanusi had not intervened when he did, I would not have lost a dime, 'cos I had virtually all my Naira in one of the 4 performing banks. However, can I say same for the rest of other innocent Nigerians.

The author of this article is at best a financial illiterate. The root cause of the current financial crises in the US and most of the world is due to the fact that most Americans live beyond their means and when the crash occurred they could not sustain their credit based lives. These were countries where interest rates were single digits even before the crises.

The article author's claim that Sanusi's policies are inimical to the Nigerian economy is laughable and absolutely ludicrous. In reality what the so called big banks do in 9ja is to lend to the very rich at extremely low rates (as low as 4%) and lend to the common masses at high lending rates ranging from 17 to about 30%. These banks were using the money from poor guys like myself to make the rich get richer, while they slam exorbitant rates on peasants to make it next to impossible for them to pay back.

About a month ago while chatting with a friend of mine who's fully into the oil biz, he revealed this to me when I asked him how he's coping with the high lending rates in 9ja. In fact I told him he could source for loans outside Nigeria from Europe or even the middle east where the rates are rarely up to 7%, and to my utter amazement he simply said he does not need to get loans from outside the shores of 9ja as he gets his loans at rates as low a 4% from 9ja banks.

He also confirmed that the bigger the size of your business, the better your bargaining power to get better lending rates from 9ja banks. So where does this live the common man.
It's the few coins which the common men put in these banks that bankers lend to the super rich at friendly rates and drive away the small scale to medium scale businesses with incredibly high rates.

By the way Nigeria has always had one of the highest lending rates in the world. Hence the essence of this guy's article is lost in his biased mind against Sanusi.

naijaking1:

Yes, yes, and yes.
Ignorance is a disease.
I beg look up the meaning of credit score and credit ratings, so that you can better understand why a bank may lend at different interest rates to different cadres of customers.
It's ok to be ignorant, but please don't be loud about it.

So who does credit ratings and scoring in 9ja? Perhaps you mistake Nigeria for some European country or what? Going by you skewed argument, since you support the writer of the article even when it's obvious the claims are generally false, why should the same write complain about high interest rates. Abi the writer is not aware of the "credit score" and "credit ratings" which prompt banks to "lend at different interest rates to different cadres of customers".

If the writer is not aware of these so called credit scores & ratings in 9ja, and in fact it does exist then his aritcle one again is floored 'cos he's embellished the truth with packs of lies!

I can see one fool asking Akingbola how he was able to be richer than the bank. Mannn, he is not only an employee like you or Sanusi, he is an employee, a business owner and a big time investor. He does not have a shallow mind like you. He has good business and investing acumen. People like you should always keep quiet when you you have nothing upstairs instead of exposing your folly and laying lazy and shallow minded precedent for our innocent upcoming youth.

Another slowpoke is saying that the banks would have gone down if Sanusi had not intervened. I hear you well o. But note something, Akingbola's counsel is asking Sanusi and EFCC to provide evidence that he(akingbola) actually stole money and mismanaged the banks and that the banks were near collapse, up till now, they have no proof. International organisations are asking Sanusi to explain how he was able to arrive at the ratio he used in sacking the banks, till now, he is still dodging. Are you guys supporting sanusi's so called reform againstAkingbola not insane? In the letter Akingbola wrote to Adoke in dailies on Thursday, he attached proofs that Sanusi and Lai Alabi waived 7BN out of 8BN that Saraki owed intercontinental bank.

Another idiot is asking why Akingbola ran away, Akingbola said he ran away because Sanusi and Saraki would have killed him. I beleived him because I know saraki well, he can do that. Shey you remember that Ibru fainted in court? Who knows maybe she was injected and the "african magic"that she had allowed her to faint only, instead of being killed. Shey you remember what people said then": "she was paying for her sins ". That is what me and you and all Nigerians would have said if sanusi had killed akingbola then. So that is why he ran away to a place where nobody will disturb and distract him from gathering fact to nail sanusi and saraki. At least we all know that the run - away was worth it because now, he has all the fact to claim he is innocent and it was sanusi that was guilty.

I have a question for Sanusi's supporters, anyone of you that got the answer right first will be given loads of recharge cars from MTN . walahi I am serious. Just give the answer and put your phone number there.

Akingbola gave out loans to his customers,unfortunately, his calculation went wrong because of global economic rccession and the loans went bad, inspite of all these he refused to write them off or waive them because he knew those his customers will pay back.
sanusi came to say he wanted to rescue the banks, and the first thing that he did was to waive saraki's loan(that is not bad) because it was saraki that nominated him for cbn governor(atleast akingbola has evidence for that).

Who is a worse criminal and who has betrayed the trust Nigerians have in him?

kafanchan:

I can see one fool asking Akingbola how he was able to be richer than the bank. Mannn, he is not only an employee like you or Sanusi, he is an employee, a business owner and a big time investor. He does not have a shallow mind like you. He has good business and investing acumen. People like you should always keep quiet when you you have nothing upstairs instead of exposing your folly and laying lazy and shallow minded precedent for our innocent upcoming youth.

Another slowpoke is saying that the banks would have gone down if Sanusi had not intervened. I hear you well o. But note something, Akingbola's counsel is asking Sanusi and EFCC to provide evidence that he(akingbola) actually stole money and mismanaged the banks and that the banks were near collapse, up till now, they have no proof. International organisations are asking Sanusi to explain how he was able to arrive at the ratio he used in sacking the banks, till now, he is still dodging. Are you guys supporting sanusi's so called reform againstAkingbola not insane? In the letter Akingbola wrote to Adoke in dailies on Thursday, he attached proofs that Sanusi and Lai Alabi waived 7BN out of 8BN that Saraki owed intercontinental bank.

Another is asking why Akingbola ran away, Akingbola said he ran away because Sanusi and Saraki would have killed him. I beleived him because I know saraki well, he can do that. Shey you remember that Ibru fainted in court? Who knows maybe she was injected and the "african magic"that she had allowed her to faint only, instead of being killed. Shey you remember what people said then": "she was paying for her sins ". That is what me and you and all Nigerians would have said if sanusi had killed akingbola then. So that is why he ran away to a place where nobody will disturb and distract him from gathering fact to nail sanusi and saraki. At least we all know that the run - away was worth it because now, he has all the fact to claim he is innocent and it was sanusi that was guilty.

I have a question for Sanusi's supporters, anyone of you that got the answer right first will be given loads of recharge cars from MTN . walahi I am serious. Just give the answer and put your phone number there.

Akingbola gave out loans to his customers,unfortunately, his calculation went wrong because of global economic rccession and the loans went bad, inspite of all these he refused to write them off or waive them because he knew those his customers will pay back.
sanusi came to say he wanted to rescue the banks, and the first thing that he did was to waive saraki's loan(that is not bad) because it was saraki that nominated him for cbn governor(atleast akingbola has evidence for that).

Who is a worse criminal and who has betrayed the trust Nigerians have in him?

You just said it all. I keep wondering why many other Nigerians can't be neutral and see reasons for once. The Akingbolas and Ibrus of today could be either you or me tomorrow.

I wonder how people can come online and start insulting others because of difference of opinion. A valid question was asked on how a bank MD earning 5M per month could be richer than the bank and insults follow. He did his case a lot of harm by running away, his life was not in danger, others arrested were released on court bail, so, why did he run?
The case is already in court, he can file civil cases against Saraki and Sanusi if he feels cheated, for all those against Sanusi, Jonathan just endorsed the banking reforms of the guy.
Those who are multi Billionaire revolutionalised their industries and did things in a different way (not naija ones sha o), what innovations did they bring to the banking industry that made them richer than the bank? Is Bill Gates richer than Microsoft or Larry Ellison richer than Oracle?
If he has proof of wrong doing, file a civil case and stop making noise in papers.