AS operators, regulators, customers and the public take stock of the fallout from the sacking of five banks chiefs, information reaching The Guardian indicated that the action did not actually enjoy the total backing of the apex bank's helmsmen.

A sharp disagreement was said to have emanated during meetings summoned to agree on the action, which saw five banks' chief executives lose their positions.

It was gathered that some of the apex bank's deputy governors opposed the move, its timing and motive.

But that might have cost the deputy governors, Mrs. Juliet Madubueze and Professor Akpan Ekpo, their own jobs, as they were dismissed from their positions to which they were appointed early this year, as recently reported, though the reports were silent on the real reasons for their removal.

http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=220809&ptitle=Why%20Two%20CBN%20Deputy%20Govs%20Lost%20Job

This is simply terrible. 100% magomago.

Guardian and their spin on the story, well i do not expect them to do otherwise.

Sanusi is the defacto CBN governor, the buck stops at his table. If any deputy disagrees with his course of action, honour demands they resign, at least that is how it is done in other climes. It would be difficult for someone to implement a policy you disagree with. You do not wait to be sacked. Anyway this is Nigeria.

It's LOSE not LOOSE!

I had always wondered why Sanusi is so obsessed with Foreign takeover of the only sector that seems to be working and which is actually homegrown?

He should go and get his Foreign Friends to come and take over the Textile and plastic manufacturing sector and leave our banks alone.

Sanusi doesn't strike me as someone who tolerates opposing views. I see him as ultra-conservative and this might not be too good for him since no man is an island of knowledge and considering the sensitivity of his position.

McKren:

I had always wondered why Sanusi is so obsessed with Foreign takeover of the only sector that seems to be working and which is actually homegrown?

He should go and get his Foreign Friends to come and take over the Textile and plastic manufacturing sector and leave our banks alone.

He has a pre-arranged order from the Arab funds. Those are his foreign friends he has always talked about.
Problem is, they might no longer be interested especially considering that the whole industry has lost any credibility that was built over the years.

My question is did the federal government not change the[b] whole board [/b]and not just this two. I think Guardian should just have left it at the two disagreed with the CBN board.


Yar’Adua appoints Orosanye, others as CBN board members


President Umaru Yar’Adua has approved the appointments of Stephen Oronsaye and Nebolisa Arah as members of the board of the Central Bank of Nigeria (CBN).

This was made known in Abuja on Sunday by Olusegun Adeniyi, Special Adviser to the President on Media and Publicity.

“Mr. Oronsaye, who is the current Head of the Civil Service of the Federation, is to serve on the board in his personal capacity to replace Akpan Ekpo, while Arah who was the pioneer Managing Director of Fidelity Bank is to replace Juliet Madubueze.

“The appointments of Samuel Olofin, Dahiru Muhammad and Joshua Omuya to the CBN board had also been renewed by the president. All the board appointments are subject to confirmation by the Senate,” he said.

Mr. Adeniyi also announced President Yar’Adua’s nomination of Kingsley Moghalu for confirmation by the Senate as a Deputy Governor of the CBN. He said the nomination of Mr. Moghalu was meant to strengthen CBN for effective and efficient performance.

“Mr. Moghalu, 46, holds a doctorate degree from the London School of Economics with experience in corporate governance, risk management and strategy. His appointment is expected to complement the collective strength of the CBN board and management.

“President Yar’Adua has also approved the nomination of Adedoyin Salami, John Oshilaja, Chibuike Uche, Shehu Yahaya and Abdul-Ganiyu Garba for confirmation as members of the Bank’s Monetary Policy Committee,” Mr. Adeniyi said.

http://www.234next.com/csp/cms/sites/Next/Money/Finance/5444965-147/Yar%E2%80%99Adua_appoints_Orosanye,_others_as_CBN.csp

PapaBrowne:

He has a pre-arranged order from the Arab funds. Those are his foreign friends he has always talked about.
Problem is, they might no longer be interested especially considering that the whole industry has lost any credibility that was built over the years.

Remember he did his Masters programme in Sudan and Sudatel has already acquired a Nigerian telecom coy. Maybe he would also assist his Sudanese Arab friends to acquire the banks.

welcome to the northern take over of the only sector of our economy that is at least growing.

Stop insinuating garbage.

wirinet:



Sanusi is the defacto CBN governor, the buck stops at his table. If any deputy disagrees with his course of action, honour demands they resign, at least that is how it is done in other climes. It would be difficult for someone to implement a policy you disagree with. You do not wait to be sacked. Anyway this is Nigeria.

@ wirinet you are one correct guy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Sanusi will carry the can should things go wrong. the buck stops at his table period!

They disagreed with the TIMING and MOTIVE. They're certainly entitled and it shouldn't have cost them their jobs. They're not there to play YES MEN in a govt organisation, and a CBN Governor shouldn't be a MY WAY OR THE HIGHWAY despot. Na him go first reach there? Nonsense

Sanusi is the man, brave and courageous
In a single sweep , he has bastardized the legacy of Saludo, whose reform can said to be a window dressing, that is falling apart.

bilymuse:

Sanusi is the man, brave and courageous
In a single sweep , he has bastardized the legacy of Saludo, whose reform can said to be a window dressing, that is falling apart.

Really ?

Nigerians are funny!!!
So its ok to risk the economic future of 150 million people just to attack Soludo's records

I sorry for Nigeria.

I guess some people can't just this SAnusi guys. Soludo was also accused of getting rid of a deputy governor (Msheila or so, ) and no one complained. by the way, what has been the contribution of these deputy governors that were sacked. it's an appointment and it can be terminated, did they not know.

pcicero:

Sanusi doesn't strike me as someone who tolerates opposing views. I see him as ultra-conservative and this might not be too good for him since no man is an island of knowledge and considering the sensitivity of his position.

Soludo was not tolerating of opposing views either. Pat Utomi had issues with him because of this, even Atedo Peterside disagreed with him on consolidation. The consolidation was kicked against by most people. by the way, those who tolerate all views may not be too successful. You can't satisfy everyone. There is no doubt that a good number of people support Sanusi.

McKren:

I had always wondered why Sanusi is so obsessed with Foreign takeover of the only sector that seems to be working and which is actually homegrown?

He should go and get his Foreign Friends to come and take over the Textile and plastic manufacturing sector and leave our banks alone.

please tell us what is working in the banking sector. I guess you must be an outsider or one of the few insiders feeding on the incompetence of the regulator. A few people come together to set up a bank and drive young men/women to the extreme in meeting deposit targets only to squander the money away to their friends. The sector hardly contributes to the real sector of the economy yet they've driven property prices through the roof. I prefer that the foreigners come and take over. I'm sure many bankers will prefer to work for these foreigners than the Elumelu's Ovia's, Akingbola's who use you like their servants. Atedo Peterside saw the sense in this and teamed up with Stanbic but these slave drivers will rather die there.

Mad_Max:

They disagreed with the TIMING and MOTIVE. They're certainly entitled and it shouldn't have cost them their jobs. They're not there to play YES MEN in a govt organisation, and a CBN Governor shouldn't be a MY WAY OR THE HIGHWAY despot. Na him go first reach there? Nonsense

I agree with you 100%, if the disagreements are not fundamental, or the deputy can work with the governor despite his personal disagreements, then i do not think they should be sacked. But the impression the report gave was that they had a fundamental difference of opinion. Nigerian press seems to exaggerate a lot.

If even even a bank is your personal property, one should not expect all other staff to be yes men, or else you would not need any other management staff. It is very wrong to sack someone for his opinions.

what happened to freedom of expression? Sanusi should realize that the bank is just a fraction of the economy. I f the bank succeds and other sectors are on their knees ,then he has not achieved anything.It is always better to have an Economist as CBN governor insted of having a banker.
We are all watching.

jacobs123:

I guess some people can't just this SAnusi guys. Soludo was also accused of getting rid of a deputy governor (Msheila or so, ) and no one complained. by the way, what has been the contribution of these deputy governors that were sacked. it's an appointment and it can be terminated, did they not know.

Soludo was not tolerating of opposing views either. Pat Utomi had issues with him because of this, even Atedo Peterside disagreed with him on consolidation. The consolidation was kicked against by most people. by the way, those who tolerate all views may not be too successful. You can't satisfy everyone. There is no doubt that a good number of people support Sanusi.

please tell us what is working in the banking sector. I guess you must be an outsider or one of the few insiders feeding on the incompetence of the regulator. A few people come together to set up a bank and drive young men/women to the extreme in meeting deposit targets only to squander the money away to their friends. The sector hardly contributes to the real sector of the economy yet they've driven property prices through the roof. I prefer that the foreigners come and take over. I'm sure many bankers will prefer to work for these foreigners than the Elumelu's Ovia's, Akingbola's who use you like their servants. Atedo Peterside saw the sense in this and teamed up with Stanbic but these slave drivers will rather die there.

If Elumelu are using people like slave as you suggest, Sanusi should bring his Foreign Freinds to come and compete and drive them out of Business with their fair minded policies. To bully people and take over their Business smacks of dictatorship.

Is like many works are still underway,if all these are solution let him go on, but if not(as we will soon see) it is better we are told the truth.

People do not really understand the underground game going on in this mirage game by Sanusi and his pay masters. Sanusi cant claim to be more intelligent than Soludo. Sanusi, a graduate of Sharia Studies, wrking to Islamize the Nigerian economy. Northern core Islamist who are now in power in Nigeria only want to hijack the economy and wrestle it from the hands of the Southerners known to have done well in the sector. It is a well calculated plan.

Sanusi is just reading and interpreting a script already written by the Hausa Islamic Oligarchy of the the Northern Nigeria. It is working out for them perfectly. Already, President Umaru Yara'Adua, this morning, is in Saudi Arabia meeting with the the Islamic Bank Cooperation to take over investment in the five banks. This is so sad that a particular group of Nigeria will use power in their hand for such a selfish domination in a Nation that call itself One Nigeria! So sad indeed.

Tufiakwa! Boko Haram! Boko Haram!

this shoudnt have happened at this crutial time, obviously the president is not serious with his rule o law mantra
http://mycitynews..com

Haba macfarland,

Please tell me if we are also going to use Religion in banking business. We use tribal sentiments to judge every action that is not favourable to us, if that fails we then try religious.

Please tell me how the Islamic Bank Cooperation can take over all five banks even if they are interested in doing banking business in Nigeria.

Why does the Islamic Bank have to take over any of the five banks? Or is Sanusi/Yaradua offering them for free? What stops the bank from acquiring a license, raise the 25 billion naira share capital and start doing business in Nigeria.

Then even if the Islamic banks take over the Five banks, is that going to affect Christians negatively?, maybe they would not return their deposits to them or they would refuse to do business with Christians.

Even if the 5 banks are bought by the Islamic Bank, there are about 19 other banks in Nigeria, so you can withdraw your money and take it to other Christian (maybe Redeem) bank.

Saudi Islamic cooperation to overtake our banks, God forbid! For CBN Deputy Gov to Oppose Sanusi's Action indirectly mean they are not pure. Hence, Sanusi's action is not bad. Our nation has to be sanitised, it starts from you and I

wirinet:

But the impression the report gave was that they had a fundamental difference of opinion. Nigerian press seems to exaggerate a lot.

That they do.
Still, the whole sordid truth will come out sooner or later. If bank chiefs are stealing and jeoparding people's financial futures, it's right that they should go to jail for it. But there's something fishy and lopsided about Sanusi's Way.

@wirinet,
Dont be deceived. We all went to school so we can be smart and intelligent to know what is happening in our environment by putting 1 and 2 together. You can read below a write-up curled from today's Sun Newspapers. We Nigerians are smarter than Sanusi, a Sharia Studies gratudate turned banker!

"The North’s anger
Besides, the North had believed that Soludo was playing President Coliseum Bosanko’s script to the effect that the Arabic inscription on the naira was yanked off and that the former governor of the apex bank planned to crowd the North out of the foreign exchange market by classifying the Bureau de Change (BDC) into ‘A’, ‘B’ and ‘C,’ which made it impossible for all the operators to access the CBN foreign exchange window. The attempted redenomination of the naira was another policy, which Soludo’s administration thought would curb inflation and reduce the overbearing effect of the dollar against the naira. This was also counted against him. Northern top shots misconstrued that to mean that the policy was against the bureau de change operators, who are the major operators of the business.

So, it was against this background that Sanusi Lamido Sanusi emerged as the new CBN boss. Soon after he assumed office, he liberalized the forex market, which made it possible for all the BDC operators to participate in the forex market. The action elicited reactions from experts, who believe that Sanusi was in a hurry to upturn the achievements of his predecessors and stamps his feet in the economic sphere. He was believed to be aiming at ensuring the return of Arabic inscription on the naira and the licensing of more banks of northern origin with lower capital base and of course or further shrinking the banks to 15. Indeed, even before the conclusion of the auditing of the banks, Sanusi had told London Times that his target was to shrink the existing 24 banks to 15 strong banks.

The CBN governor had commissioned the auditing of the banks. So far, only 10 had been fully audited. Analysts are wondering, therefore, why the CBN did not wait for the completion of the auditing before taking actions on banks that fall short of its expectation. This is why some are actually insinuating that the action was premeditated and that the real intention is to hand over some banks to new investors, the majority of who may come from a particular section of the country.

The suspicion
Sources say that this suspicion is more rife as the CBN did not make effort to help the banks, in other ways instead of outright take over"

I REALLY WONDER WHAT HAPPEN TO RATIONALISM IN NIGERIA.
WHAT MATTERS IS GETTING TO THE PROMISE LAND NO MATTER WHO TAKES US THERE!
SEE HOW SELFISH SENTIMENTS MAKE ONE A MUMU!
I STILL MOURN THE REMOVAL OF SOLUDO!!
GOD SAVES US FROM THESE MEN WHOSE MINDS ARE CRIPPLED BY RELIGION.

It is shocking that we appear to ignore these characters that borrowed heavily in these banks without the capacity, collateral or intention of paying! We are rather expending energy on Arabs, Soludo & Sanusi.

macfarland:

@wirinet,
Dont be deceived. We all went to school so we can be smart and intelligent to know what is happening in our environment by putting 1 and 2 together. You can read below a write-up curled from today's Sun Newspapers. We Nigerians are smarter than Sanusi, a Sharia Studies gratudate turned banker!

thank God, we went to school, that gave us the opportunity to analyze happenings in our environment and interpret those events according to our understandings and expectations. The fact that Sanusi is a Sharia Graduate banker does not make him less competent. In fact if he was that incompetent, he would not have made it to top management positions in two of the top (privately owned) banks in Nigeria.

macfarland:

"The North’s anger
Besides, the North had believed that Soludo was playing President Coliseum Bosanko’s script to the effect that the Arabic inscription on the naira was yanked off and that the former governor of the apex bank planned to crowd the North out of the foreign exchange market by classifying the Bureau de Change (BDC) into ‘A’, ‘B’ and ‘C,’ which made it impossible for all the operators to access the CBN foreign exchange window. The attempted redenomination of the naira was another policy, which Soludo’s administration thought would curb inflation and reduce the overbearing effect of the dollar against the naira. This was also counted against him. Northern top shots misconstrued that to mean that the policy was against the bureau de change operators, who are the major operators of the business.

I do not know what to say about your allegations about the inability of the north to be crowded out of the foreign exchange window, because the foreign exchange market in Nigeria is like a mafia organization with all banks being actively involved. It is the banks that buy Forex at official rates and give it to mallams to sell for them at black market prices.

I had never seen the usefulness of Soludo's Redenomination Proposal. I do not know how just removing two zeros from the Naira can help control inflation. I had though inflation was caused by too much money chasing  to little goods. And since we have very little local goods, our inflation rates would be set by the quantum of our dollar earnings put into the system, the international price of goods we import and the quantum of naira put into the system - officially and unofficially. Please i need a bit of education on that as i did not take economics beyond 200 level.

macfarland:

So, it was against this background that Sanusi Lamido Sanusi emerged as the new CBN boss. Soon after he assumed office, he liberalized the forex market, which made it possible for all the BDC operators to participate in the forex market. The action elicited reactions from experts, who believe that Sanusi was in a hurry to upturn the achievements of his predecessors and stamps his feet in the economic sphere. He was believed to be aiming at ensuring the return of Arabic inscription on the naira and the licensing of more banks of northern origin with lower capital base and of course or further shrinking the banks to 15. Indeed, even before the conclusion of the auditing of the banks, Sanusi had told London Times that his target was to shrink the existing 24 banks to 15 strong banks.

I am sorry to ask, but where did the BDC get their forex before? and why is it detrimental to the financial system for BDC to source their forex from the CBN directly, maybe it might further bridge the Gap between the Official and black market rates.

I will not support returning Arabic Inscription on the Naira notes, but i must add that the present numerals used in the western world, stems from Arabic. It superseded Roman numerals, so the Islamics should take solace that the whole world already use their Numerals.

I had always been a critic of Soludo's Consolidation.  From a practical perspective Nigeria needs small banks as well as big banks, he should not have killed other banks based on capital base, he should have categorized the banks into three categories - Big, Medium and Micro  Banks. And each would cater for a different client. The girl who had learnt tailoring and had enough practical experience should be able to get a loan from a small bank to buy, machines, pay for shop, buy a small generator and hire one or two staffs - all these would cost less that N300,000. That niche can be filled with small local banks. I think Soludo realized his mistakes and introduced Micro-finance banks later, but then why did he have to kill other medium capital banks before.

Also his introduction of coins was a colossal waste and failure, even a market woman knew that coins would not work in the Nigerian environment, unless they are N10 and N50  coins. imagine minting 50k and N1 coins.

macfarland:
 
The CBN governor had commissioned the auditing of the banks. So far, only 10 had been fully audited. Analysts are wondering, therefore, why the CBN did not wait for the completion of the auditing before taking actions on banks that fall short of its expectation. This is why some are actually insinuating that the action was premeditated and that the real intention is to hand over some banks to new investors, the majority of who may come from a particular section of the country.

The suspicion
Sources say that this suspicion is more rife as the CBN did not make effort to help the banks, in other ways instead of outright take over"

Although i also feel the situation could be handled better, it was a welcome development to half the rot in the system. I feel he should go after those debtors in the other banks also as Jimoh Ibrahimoh says. But CBN under Soludo had been helping the Banks and all these banks do is ask for more help.

Lets wait and see, if Sanusi is pursuing another agenda, it would be apparent in no time and i will be the first to crucify him. I was an avid supporter of Ribadu first, before i turned against him

if u ask me,the new CBN gov has the right to choose his team ,just like Soludo did. Soludo also fired a CBN dep gov when he came in 5 years ago ^{(I think her name was Mrs Msheila or something).}

There's really nothing wrong with Arab investors having banks in Nigeria,if the hausa-Fulani clan could run Nigeria half as much as their muslim brothers run the gulf states,things would be better for us all.

@wirinet,
Dont be deceived. We all went to school so we can be smart and intelligent to know what is happening in our environment by putting 1 and 2 together. You can read below a write-up curled from today's Sun Newspapers. We Nigerians are smarter than Sanusi, a Sharia Studies gratudate turned banker!

thank God, we went to school, that gave us the opportunity to analyze happenings in our environment and interpret those events according to our understandings and expectations. The fact that Sanusi is a Sharia Graduate banker does not make him less competent. In fact if he was that incompetent, he would not have made it to top management positions in two of the top (privately owned) banks in Nigeria.

"The North’s anger
Besides, the North had believed that Soludo was playing President Coliseum Bosanko’s script to the effect that the Arabic inscription on the naira was yanked off and that the former governor of the apex bank planned to crowd the North out of the foreign exchange market by classifying the Bureau de Change (BDC) into ‘A’, ‘B’ and ‘C,’ which made it impossible for all the operators to access the CBN foreign exchange window. The attempted redenomination of the naira was another policy, which Soludo’s administration thought would curb inflation and reduce the overbearing effect of the dollar against the naira. This was also counted against him. Northern top shots misconstrued that to mean that the policy was against the bureau de change operators, who are the major operators of the business.

I do not know what to say about your allegations about the inability of the north to be crowded out of the foreign exchange window, because the foreign exchange market in Nigeria is like a mafia organization with all banks being actively involved. It is the banks that buy Forex at official rates and give it to mallams to sell for them at black market prices.

I had never seen the usefulness of Soludo's Redenomination Proposal. I do not know how just removing two zeros from the Naira can help control inflation. I had though inflation was caused by too much money chasing  to little goods. And since we have very little local goods, our inflation rates would be set by the quantum of our dollar earnings put into the system, the international price of goods we import and the quantum of naira put into the system - officially and unofficially. Please i need a bit of education on that as i did not take economics beyond 200 level.

So, it was against this background that Sanusi Lamido Sanusi emerged as the new CBN boss. Soon after he assumed office, he liberalized the forex market, which made it possible for all the BDC operators to participate in the forex market. The action elicited reactions from experts, who believe that Sanusi was in a hurry to upturn the achievements of his predecessors and stamps his feet in the economic sphere. He was believed to be aiming at ensuring the return of Arabic inscription on the naira and the licensing of more banks of northern origin with lower capital base and of course or further shrinking the banks to 15. Indeed, even before the conclusion of the auditing of the banks, Sanusi had told London Times that his target was to shrink the existing 24 banks to 15 strong banks.

I am sorry to ask, but where did the BDC get their forex before? and why is it detrimental to the financial system for BDC to source their forex from the CBN directly, maybe it might further bridge the Gap between the Official and black market rates.

I will not support returning Arabic Inscription on the Naira notes, but i must add that the present numerals used in the western world, stems from Arabic. It superseded Roman numerals, so the Islamics should take solace that the whole world already use their Numerals.

I had always been a critic of Soludo's Consolidation.  From a practical perspective Nigeria needs small banks as well as big banks, he should not have killed other banks based on capital base, he should have categorized the banks into three categories - Big, Medium and Micro  Banks. And each would cater for a different client. The girl who had learnt tailoring and had enough practical experience should be able to get a loan from a small bank to buy, machines, pay for shop, buy a small generator and hire one or two staffs - all these would cost less that N300,000. That niche can be filled with small local banks. I think Soludo realized his mistakes and introduced Micro-finance banks later, but then why did he have to kill other medium capital banks before.

Also his introduction of coins was a colossal waste and failure, even a market woman knew that coins would not work in the Nigerian environment, unless they are N10 and N50  coins. imagine minting 50k and N1 coins.


Although i also feel the situation could be handled better, it was a welcome development to halt the rot in the system. I feel he should go after those debtors in the other banks also as Jimoh Ibrahimoh says. But CBN under Soludo had been helping the Banks and all these banks do is ask for more help.

Lets wait and see, if Sanusi is pursuing another agenda, it would be apparent in no time and i will be the first to crucify him. I was an avid supporter of Ribadu first, before i turned against him