A statement by the Central Bank of Nigeria (CBN) that the number of banks in the country may further shrink from 24 to 20 in a reform that is underway appears unsettling to some stakeholders in the banking industry who warn that the reform, if it becomes a reality, will bring about further loss of jobs.

The CBN Deputy Governor, Financial System Stability, Mr Kingsley Moghalu, who spoke in London, last week, ahead of the issuance of $500 million Eurobond for Nigeria, had explained that the further reduction in the number of banks was informed by the fact that about four would likely be taken over through mergers and acquisitions. “By mid 2011, the banks will be taken over 20 or 21 banks will remain after the reforms. We are not legislating any number but the way it appears now, about three or four banks will be swallowed up in mergers and acquisitions,” Moghalu said.

But some analysts said there is not much to fear if the banks number is reduced through mergers and acquisitions as there will likely be enough space for most of the employees of the banks affected. O man was that not the same story that was preached during the Soludo era where the number of banks in the country was reduced from 89 to 25 on 31 December , 2005 under a consolidation programme carried out by the former CBN governor, Well we all know the result of what happened.

Please don’t get me wrong, is not that am criticizing Soludo’s regime, or the new led CBN by Sanusi, what am just saying is that they should just tell us the truth and let people brace up for it, let the workers of the affected bank begin to save money, or begin to look for another alternative, than lie to their faces and get caught unprepared. I totally support the new banking reform being carried on by Sanusi, even though there where casualties, its for the benefit of all, in order to have a strong banking financial institutions that will drive the economy.

But my bone of contention is that in the coming weeks we are going to hear that some banks are going to be sold off or merged and we all likely know the banks we are talking about (the so called failed banks rescued), and there will be no job loss, that they all will be taken care off, thats a big white lie, from the little i know about running a profitable business, when a company acquires a new company, it needs to appraise it and position it to make profit, and the first thing they turn to, is to cut cost, which is labor cost, above all things.

What i only feel the CBN should be planning to do now is how to safeguard the investors, customers and employees of those banks that are likely going to be acquired, or sold off, and not play politics with economic issues.

curled from www.voiceoutng.com

Please don’t get me wrong, is not that am criticizing Soludo’s regime, or the new led CBN by Sanusi, what am just saying is that they should just tell us the truth and let people brace up for it, let the workers of the affected bank begin to save money, or begin to look for another alternative, than lie to their faces and get caught unprepared. I totally support the new banking reform being carried on by Sanusi, even though there where casualties, its for the benefit of all, in order to have a strong banking financial  institutions that will drive the economy.[/quote

Tell you the truth? does this person know of what is called Bank run?

Overall, i think this is not necessarily a bad news, the weak bank's should be sold off to restore trust and confidence in the economy