Sanusi And Foreign Investors - Politics - Nairaland
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| Sanusi And Foreign Investors by Nobody: 4:23pm On Jul 06, 2009 |
Foreign bids for Nigeria banks seen unlikely for nowBuzz up! Digg it Reuters, Thursday July 2 2009 * Nigeria signals relaxation of rules on foreign ownership * Huge potential market, but long-term play * Major disclosure, regulatory issues remain By Nick Tattersall LAGOS, July 2 (Reuters) - Nigeria's apparent readiness to ease restrictions on foreign ownership of its banks has sparked renewed interest in one of Africa's biggest potential markets but is unlikely to prompt a rash of takeovers just yet. Central Bank Governor Lamido Sanusi, appointed a month ago, said last week limiting foreign ownership of banks was "not sustainable" and that changing the rules could allow in fresh capital and risk management expertise. The comments by Sanusi -- the former managing director of First Bank, Nigeria's oldest -- marked a departure from his predecessor, who imposed a rule that no foreign institution could own more than 10 percent of a Nigerian bank. Nigeria, Africa's most populous nation of 140 million people and its second-biggest economy, has long been seen as one of the world's least-tapped scaleable frontier markets for everything from consumer goods to financial services. Any bank with an emerging markets presence wanting to expand into Africa would need a Nigerian presence, analysts say, making the prospect of being able to take over an existing franchise in the West African country a potentially tempting one. "If you look at all the banks in the world that were least affected by the credit crisis, the ones that did best were those with significant revenue coming in from emerging markets," said Ralph Silva, London-based research director for research and advisory firm Tower Group. "Those organisations , have a foothold in Brazil and in parts of Asia. The one area that has not seen much investment from a Western European perspective is Africa. There is a great opportunity for investment," he said. Cheaper technology and Africans' readiness to use mobile banking meant the cost of establishing a franchise would be much cheaper than, for example, when HSBC went into Brazil 15 years ago, Silva said. But the global economic downturn has put pressure on bank balance sheets in developed countries, leading many institutions to retreat from existing international operations and focus more on domestic markets. Despite its huge population and strategic location for entering other African markets, more than 90 percent of its people live on less than $2 a day, according to U.N. figures. Optimists hope its status as Africa's top oil exporter, a growing private sector and infrastructure development will drag it from frontier to emerging market status, but the uneven wealth distribution means it remains very much a long-term play. "It is early days so (Sanusi's) statements are in effect a signal, but a Nigeria rush is perhaps some way off," said Rele Adesina, credit analyst at Standard Bank. "OECD banks would have to consider the cost of diverting capital into a market that is not going to 'move the dial' in terms of returns in the near future at a time when they are consolidating their position in their core markets," she said. GRADUAL INVESTMENT? Analysts say a crisis in the banking sector in oil producer Kazakhstan, where three local lenders including the country's largest bank have defaulted on their debt, highlights the risks of investing in a frontier market with an economy dominated by a single commodity. Consolidation in the Nigerian banking sector four years ago cut the number of banks to 25 from 89 and the survivors went on huge capital raising sprees, tapping international and local markets in order to increase their capacity to lend. The optimism was fuelled by a gradual rise in oil prices to their highest-ever levels last year. But the bubble has since burst, leaving Nigeria's banks coping with tighter foreign credit lines and rising provisioning for non-performing loans. That has hammered down their share prices to a fraction of last year's peaks, making them attractive to investors seeking a slice of the potential growth. But poor disclosure levels remain a concern, even though Sanusi has pledged to improve regulation and Nigerian banks are gradually improving reporting standards. "There's a lot of value to be made but there is also a lot of cleaning up required," said one European banking analyst, who asked not to be named. "As long as we don't know balance sheet details, any issue at one bank will become everybody's issue, whether that's right or wrong," he said. Tower Group's Silva said the high risks involved in investing in Nigeria meant any foreign banks that were interested would be likely to enter the market cautiously. "I don't feel that banks would be interested in taking complete positions. I believe that they will look to get in, just like they got into China, with maybe 20, 30 percent holdings and wait out the situation," he said. "If stability comes, they can buy into more if they choose, or otherwise opt to get out as they did in China over the credit crisis," he told Reuters. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/ ) (Additional reporting by Chijioke Ohuocha; Editing by Sitaraman Shankar and Randy Fabi) |
| Re: Sanusi And Foreign Investors by Nobody: 4:29pm On Jul 06, 2009 |
I don't claim to be an economist but Sanusi Needs to explain to this country in common sense terms what the obsession with Foreign takeover of Nigerian Banks is all about? How is it in our National Economic Interest. There are all sorts of virgin industries in Nigeria needing investment, no foreign investment has been recorded in most in spite of all the overtures. Banks that seem one of the few industries that seem to be doing just fine and was actually home grown success. What exactly is the benefits of begging a bunch of investors who want to invest only in the already successful industry. The most annoying is that they are liaising with International Agencies and media to make these institutions seem worthless so that they can price the stake very low and buy them for next to nothing. Why is Sanusi so obsessed with pursuing a foreign takeover of an industry that seem to be doing just fine. We will soon be held hostage just like Shell and co are doing in the oil industry. After years of drilling crude oil, no local refinery or good petroleum engineering training school. |
| Re: Sanusi And Foreign Investors by blacksta(m): 4:30pm On Jul 06, 2009 |
thanks for posting an opinion |
| Re: Sanusi And Foreign Investors by DisGuy: 4:47pm On Jul 06, 2009 |
sanusi was asked a question about foreign investors in the banking industry, he answered it, how does taht make him obsessed about foreign takeovers? |
| Re: Sanusi And Foreign Investors by moneygurl: 4:55pm On Jul 06, 2009 |
Dis Guy: Thank You, Thank You, Thank You. He was asked a question and he said he did not have a problem with foreign investment, he said it might actually be good for the banks. No where did he say he was shopping around looking for foreign investors to takeover our banks. |
| Re: Sanusi And Foreign Investors by OYBMEND: 4:56pm On Jul 06, 2009 |
we dey look and laugh make him no scatter wetin others build oh The man just dey grant interview left - right - and center no regard on impact on the financial system CBN Governorship no be VOA political punditry oh!!!  |
| Re: Sanusi And Foreign Investors by OYBMEND: 5:03pm On Jul 06, 2009 |
my brothers see this analysis by guardian http://www.ngrguardiannews.com/news/article01/indexn2_html?pdate=050709&ptitle=Foreign%20Investor%20Fingered%20In%20Controversial%20Banks'%20Rating Foreign Investor Fingered In Controversial Banks' Rating my brothers na so dem do with vaswani brothers people talk say na rumour the same government wey bring dem in don boot them because of disagreement. |
| Re: Sanusi And Foreign Investors by moneygurl: 5:11pm On Jul 06, 2009 |
OYB_MEND: How many interviews has he done? Is it not just 2, one with Next on Sunday (which was more personal) and the other with financial times. As for the report that foreign investors are behind the rating, we will wait and see. But the banks are to blame themseleves, in other to win customers, anytime they get all this useless recognition from foreign magazines they publish and use it to their andavantage, but not that its negative they are condeming and crying foul. If foreign investors are behind the current report, what makes us not believe they were behind the positive reports they were happy to recognize. |
| Re: Sanusi And Foreign Investors by OYBMEND: 5:15pm On Jul 06, 2009 |
we are just asking the CBN Governor to thread carefully and guard our country against exploitation everything is not about politics His policy initiatives are too dramatic and are causing ripples in financial system the issue is not necessarily what the foreign media says but that they get sanctioned by the CBN Governor. |
| Re: Sanusi And Foreign Investors by biina: 5:24pm On Jul 06, 2009 |
AFAIK the old 10% limit is still in effect, so I dont see what the ruckus is about. |
| Re: Sanusi And Foreign Investors by waffigbo(m): 5:28pm On Jul 06, 2009 |
SANUSI IS an Islamic Scholar who dont know Jack about economics or banking, WHy he was chosen as CBN governor is a mystery. Or probably is the governments plan to gradually islamicize the Nigerian banking system |
| Re: Sanusi And Foreign Investors by Depilot(m): 5:36pm On Jul 06, 2009 |
Sanusi was only answering a very simple question with a straight forward answer. I think the poster of this topic has problem with northerners running the show. I can also assure you that this poster is from the same town as Soludo. Instead of looking for ways to bring Sanusi down, why not give him a chance and get to know what the man is capable of doing. It is for sure that he's qualified for the position; And the record shows that he has only held the position for less than 2 months. So, what is this poster is already crying for? |
| Re: Sanusi And Foreign Investors by xxxinchdep: 5:38pm On Jul 06, 2009 |
sani shiiiiiiiiiiiiiiiin is a big fool who is looking for people to relieve him of his fears of being the head of cbn without understanding his role. call the while people and they will steal money too shit heady sanu shiiiiiiiiiiiiiiin |
| Re: Sanusi And Foreign Investors by xxxinchdep: 5:39pm On Jul 06, 2009 |
sani shiiiiiiiiiiiiiiiin is a big fool who is looking for people to relieve him of his fears of being the head of cbn without understanding his role. call the while people and they will steal money too shit heady sanu shiiiiiiiiiiiiiiin |
| Re: Sanusi And Foreign Investors by Depilot(m): 5:40pm On Jul 06, 2009 |
SANUSI IS an Islamic Scholar who dont know Jack about economics or banking, WHy he was chosen as CBN governor is a mystery. Or probably is the governments plan to gradually islamicize the Nigerian banking system @waffigbo You sound like an uninformed dude. Please take some time out and do your home work; get to know the man and I can assure you that you will change your mind. |
| Re: Sanusi And Foreign Investors by MrCrackles(m): 5:44pm On Jul 06, 2009 |
waffigbo: If the height of every human being's buffoonery level was measured on a scale, you will rip the scale apart! What a daft post. . . . . . . . . .Get your facts right before you spew your vomit all over a public forum!  |
| Re: Sanusi And Foreign Investors by ikeyman00(m): 8:00pm On Jul 06, 2009 |
[size=18pt]to hell with the north stuburn mentality it high time the north should preach and practice one nigeria thing u cannot tell the deltans how they will live their lives and u turn around encrypt shaira at some places u cannot always have a north in charge of tin can port u cannot claim the capital of nigeria to be abuja and u could only afford northern man in charge of the city u cannot claimed to be a nigeria but then with all that loots u bastards still cant create a bank, now in charge u are so desperate to have a bank in the north no amount of interview will decieve us nigeria banks are for nigerians and owned by nigeria and the hausa must respect that and be part of that period[/size] |
| Re: Sanusi And Foreign Investors by Depilot(m): 8:06pm On Jul 06, 2009 |
So, you think your large fonts will change things? Wow, now I see why it's so easy for Northerners to continue to run things. |
| Re: Sanusi And Foreign Investors by bigbois: 9:05pm On Jul 06, 2009 |
When I read text of Sanusi's interview, a very old quote by Greenspan came to mind - “Since I have become a central banker, I have learned to mumble with great incoherence. If I seem unduly clear to you, you must have misunderstood what I said.” We all know that Soludo's a hard act to follow and Sanusi may be keen to make an early impression, but he needs to stop acting like an economic activist. He is a distinguished professional in his own right and has all it takes to be successful in his new role. His unguarded statements regarding CEO's and our banking system is not in our national interest. It will only serve to empower those internal and external forces bent on seeing our banking institutions crumble. He needs to understand that the issues he highlights (real or contrived) pale in comparism to the damage his urterances may precipitate. I fear that if he doesn't adopt a more tackfull approach, he may trigger a revolt from the banks, which will not be in his or our nations interest. |
| Re: Sanusi And Foreign Investors by OYBMEND: 9:37pm On Jul 06, 2009 |
Depilot and waffigbo have succeeded in injecting tribalism into this thread what should rather be a debate about policy is about North vs South, what a tragedy. Depilot should probably tell us how it is in Nigeria's economic inteerest to have a Foreign takeover of Nigerian Banks If you have nothing to say about economics I believe there are enough threads already about tribalism. |
| Re: Sanusi And Foreign Investors by waffigbo(m): 11:47pm On Jul 06, 2009 |
OYB_MEND: First of all OYB MEND dont be naive call a goose a goose, You might be to naive to see what is going on in Nigeria. Recently the north said they want to build a PTI in kaduna, ANother guy said that the North can mobilize 500,000 of their people to attack the south if the militants dare attack them, Minister for petroleum is from the North, The south has been calling for true federalism now the North came out and said yes we want that but we want to now do full scale sharia in all part of the north cos by federalism there is self determination so that is what their people determine for themselves, well i dont shy away from a battle you ass wipe and am say as it is Second of all I didnt say anything that has to do with tribalism. All I said he isnt qualified to head a financial institution because his specialty is islamic philosophy which he studied in Sudan. Now I dont care if he is a bishop, all am saying bring someone qualified enough |
| Re: Sanusi And Foreign Investors by OYBMEND: 12:03am On Jul 07, 2009 |
I am not particularly worried about full sharia in the North. If we have 100% federalism including complete devolution of management of economic resources I think Nigerians living in the North who find state policies too harsh can simply relocate to the South. Please let the topic go back to economics. At least Sanusi is more qualified than Tanimu Yakubu and Shamsudeen Usman who were other real contenders in the eyes of Yar'adua. He is Nigeria's CBN Governor and must be accepted by all as he was approved by the Senate, however when he engages in questionable policies we have a duty to question them. |
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