In as much as we need foreign investors, we do not need to depend on them. If anyone needs disclosure, it is the local investors.
These are the people who bear the brunt when the chicken come to roast.

The capital flight that heat the banking industry and the NSE in general is what has left the NSE in a comatose state that it is in now.
In september alone, over $8b left the NSE.
I am not saying that local investors will not do same. But the money would still have been in the econonmy Nigeria.

Do not call for my head. I am not an economist. Just saying what I think.

Ibime:

All this is English.

What does "As long as they are complying with CBN rules" mean when CBN rules are not up to internationally accepted standards?

It is one thing to say "the concerns of foreign investors should not dictate Nigeria's banking/disclosure policy" and it is another thing for a Central Bank Governor to admit that they are not concerned about lack of transparency. Whilst there may be some 'cooking of the books' in the UK, you will never find Mervyn King openly decry the need for better disclosure; and it isn't Government policy to perpetuate subpar accounting and risk-management standards in the financial markets.

The only reason to think twice about Soludo's 'bad bank' approach is that the toxic assets in question are all oil-related and we cannot assess the strategic risk involved, especially considering that Naija runs an oil-economy.

debosky:

The same 'internationally accepted standards' that led to the collapse of Lehmann and HBOS' hopelessly unsustainable business model right? Spare me.

Are you concluding that the CBN's guidelines are not up to scratch? If so, by virtue of what information? How has he said he is not concerned about a lack of transparency? What is this 'call for transparency' that you are talking about? Don't they issue financial reports at the end of each year?

What good did the 'transparency' do for HBOS and others except cause a run on their share prices and lead to their near collapse?

Banks may be excessively committed to the stock market, but I'd rather wait till annual reports are released. This is the method used in 'developed' economies, so I'd rather abide by that as well.

What evidence do you have that the toxic assets are oil-related? Oil and gas producers are not quoted on the exchange (marketers which are much smaller are), neither do they get significant funding from local banks. The 'toxic' assets are essentially worthless shares that were artificially driven higher by the massive capital inflows into the stock market. Isolating these loans will have minor if any effects at all on the oil economy.

debosky:

The same 'internationally accepted standards' that led to the collapse of Lehmann and HBOS' hopelessly unsustainable business model right? Spare me.

Are you concluding that the CBN's guidelines are not up to scratch? If so, by virtue of what information? How has he said he is not concerned about a lack of transparency? What is this 'call for transparency' that you are talking about? Don't they issue financial reports at the end of each year?

What good did the 'transparency' do for HBOS and others except cause a run on their share prices and lead to their near collapse?

Banks may be excessively committed to the stock market, but I'd rather wait till annual reports are released. This is the method used in 'developed' economies, so I'd rather abide by that as well.

debosky:

(1.) What evidence do you have that the toxic assets are oil-related?

(2.)Oil and gas producers are not quoted on the exchange (marketers which are much smaller are), neither do they get significant funding from local banks.

Banks may be excessively committed to the stock market, but I'd rather wait till annual reports are released. This is the method used in 'developed' economies, so I'd rather abide by that as well.