Akingbola has been replaced as the head of CIBN

LAGOS (AFP) – The umbrella body of Nigerian bankers, the CIBN, announced Thursday that it had replaced its president, who was recently sacked by the country's central bank for running his own bank into insolvency.

The Chartered Institute of Bankers of Nigeria said in a statement published in the local media that it was replacing Erastus Akingbola with its first vice president Laoye Jaiyeola, following a shakeup across the sector.

This is only natural to follow

It is only a pity. I pity the man.

I feel for him sha. But why go into hiding when you have nothing to hide

source?

Matinho:

source?

Guardian online

I pity the man too. . . but if he is guilty, he dug his own grave.

I expected this to happen immediately he was removed as intercontinental's MD, I feel for him too, its hard to get to the top and so easy to fall yakata, God dey, wish him well

Which one be CIBN?

God dey 4 all of us

Chartered Institute of Bankers of Nigeria

Not surprised at all.

My only surprise is he's not being replaced by one Mallam Yusuf Shugarbar

ooh, I forget, the position is neither economically viable nor politically strategic.

as much as i hate to rejoice at the downfall of fellow man. But i think this folks deserve what's coming their way.
it makes rubbish of some cliches called "wise saying"
how can we entrust so much resources in other care when they run thier own aground

i hope they are learning from this, so they dont repeat such again.

Serves the prick right,,,
Pushing juniors to the edge to bring in this funds n then later lavishing it on friends and cronies.
Fackin Bastad.
Ya'll pitying this guy,i bet u've neva lost your hard earned moni cz of bank failure b4.
I pray he neva gets outa this,maybe even _DIE trying to.
Yes its personal !
customers die when banks fail

gReenmAn:


My only surprise is he's not being replaced by one Mallam Yusuf Shugarbar

LWKM, but u are 100% correct, its a pity, i really liked the man, hope he'll bounce back, and for those who think he has fallen, Akingbola na big boy all round no matter what

he is the architect of his problems. nobbody should pity him ooo! given huge loans without any form of collateral and setting up fictitious companies to collect loans from the bank. i even heard he gave more than 250 billion naira to some of his friends without any form of collateral. running the bank as if it was a family buisiness. if he has nothing to hide why running? as far as am concerned he is the only one on the run. what a shame.

Nigeria is full of injustice. They removed the man from his bank and declare him and others wanted, soon after that the court granted them freedom. You'll soon hear that the court gave him back his bank. The CIBN, CBN,EFCC and all the Cs and Es are controlled by the FG. Look, it has always been the case in Naija. Becos injustice thrives in Nigeria, it is very difficult for Nigeria to move forward.
Our president is so busy pursuing the Niger delta boys, when the developed Nations are sourcing for alternative energy source. Presently crude oil value is going down, It closed @ $71 per barrel yesterday and 2day it  is selling @ $69 per barrel. I forsee our president clearing the Niger delta boys and coming back to hear that the crude oil has lost value entirely. My suggestion is that Nigeria govt should encourage industralists and entrepreneurs and not crucify bank borrowers without following due process. Philip Emeagwali wrote in one of his articles on emeagwali.com that Africa should either produce or they perish.
This what our govt should do and not beating about the bush.

He should have expected it naturally,,,

He should not have been removed but, should have been suspended

i have been following this drama with keen interest. if only you guys know the sharp practices going on within the industry, you will not show any empathy towards these guys.these are guys that will sack and circulate(CBN & banking industry) the name of any cashier that steal 1 Naira or even committed an honest error. they will sack or withold marketers salary for not meeting target to finance their lifestyles.

my prayers are:

cbn and other agencies should follow this to logical conclusions
let the culpable officers and debtors face the full wrath of the law.
let it not be tribalized or politicized

I feel sorry for the man as well.

I hope he gets out quickly & learns from it all,whether we like it or not his bank provided employment/business for tens of thousands of Nigerians

i dont even pity him one bit, dem suppose disgrace him as them disgrace tafa's, i bet hez still enjoying, awon idiot, won ma suffer gbeyin ni, rubbish!!!

The world will only join u in licking sugar they can never join you in licking bitter. Sorry Erastus

but for heavens sake why is the guy on the run. he should even charged for evading arrest. he should have at least reported himself like the others.

i heard the details of cbn investigation into insider abuse is startling.

What is the meaning of these talks about PITYING Erastus? The guy is still f**king rich! Pity my ass!!!

after all lobbying emirs,sultan and obasanjo for a soft landing did not work, he took off. i ve a feeling we have seen the last of him. he may not come back. he has loots that will last him his lifetime.

http://www.nigeriamasterweb.com/paperfrmes.html

Admits negligence as a regulator.
For the first time since the rot in the banking sector was uncovered two weeks ago, the Central Bank of the Nigeria (CBN) on Wednesday admitted it failed in its responsibility as a regulator but largely blamed the management of the affected banks as exploitative and lacking in corporate governance.“I am speaking on behalf of the CBN as an institution and especially as a regulator and as a director of banking supervision who has failed in its duty in ensuring that all of these institutions are effectively supervised.
“But I must say that what happened ought not to have happened if actually the institutions, especially the banking institutions we have are run in a manner to ensure their safety and soundness”, Samuel Oni, CBN’s director of banking supervision, who addressed a town hall meeting of Civil Society Organisations (CSOs) to explain recent actions taken by the apex bank said.
CBN Governor Sanusi
At the event, participants, which comprised CSOs, legal practitioners, politicians and media practitioners generally blamed the apex bank for not uncovering the banking sector rot, urging Lamido Sanusi, CBN governor to “look inwards in the cleansing process”.
But Oni disclosed that the CBN beyond the appointment of the new management to run the five culpable banks, is already preparing them for eventual take over and, consequently, has already appointed financial advisers for each of the five ailing banks as well as forensic auditors to establish their exact conditions prior to possible takeovers by “serious minded investors.”
“As to what is going to happen to these banks, I can tell you that CBN is not unmindful of what is going on. What is important to us is to save these banks which we have done, CBN has actually appointed financial advisers for each of these banks and we actually appointing forensic auditors in order to dig deep into their financial records to be able to establish the exact conditions of these banks.
“The whole idea is to be able to prepare these banks for eventual mergers, acquisitions or getting a strategic investor that would bring in skills, technology and brands to be able to institute good corporate governance in these banks. The core investors do not have to be foreigners, they could be local and could be a combination.
“But what is important in my mind is to repackage and also invite bidders for these banks. It is the process that we should be concerned with. If that process is well defined, and criteria defined and everybody is allowed to participate, I would believe that that would bring more credibility and transparency to the system. When that time comes, every body would see it done” Oni told the audience.
Since the banking sector crisis broke, Sanusi had taken some stringent steps to not only save the ailing institutions but to restore public confidence both locally and internationally.
Part of CBN measures were the injection of some N420 billion into the five ailing banks and guaranteeing all foreign loans and correspondent banking lines of the five banks.
The apex bank also announced that it would hold a town hall meeting on Friday to reassure the international banking community of the stability of Nigeria’s financial system and also take the opportunity to talk to regulators in the UK.
“Not even a single line of credit has been cancelled by any of the correspondent banks, but on the contrary, they are actually willing to invest more given the fact that CBN has guaranteed a lot of these lines”, Oni assured.
A CBN statement yesterday said Sanusi will be accompanied by some deputy governors as well as the new managing directors of Union Bank, Oceanic Bank, Intercontinental Bank, Afribank and FinBank to the road show in London.
The managing directors will also be available for a series of one-on-one meetings at the road show which its target audience include international correspondent banks, lenders, rating agencies, Nigerians in Diaspora, members of the diplomatic corps and officials of the Nigerian high commission in London.
Giving further insight to the extent of rot in the system, Oni further lamented huge concealed facts uncovered in the five banks since CBN’s appointment of new managements teams for them.
“Since the appointment of new managements in those five banks by the CBN, if I tell you what we have been able to uncover in just these few weeks that we have been there, I can tell you that these are directors or managers that should be committing suicide like is done abroad.
“If you see the amount of information that was kept off their balance sheets, it is awful, I mean its criminal. That is to show you the criminal minds that are so prevalent is all of these institutions”, Oni said.
However, he pointed out that CBN’s special examiners have already moved into the remaining 11 indigenous banks and that the same measures earlier taken against the five bailed banks would be meted out to any of them found culpable.
“In terms of what we want to do going further, we have concluded the special examination on 10 banks and the examiners are in another 11 banks and that covers all the indigenous banks. We have left out three banks, actually the foreign-owned ones which we will soon go to - Citibank, Standard Chattered and Stanbic-IBTC.
“I can assure you that the same rules, the same templates will be applied across board. I believe CBN will not waiver on that because it is in the best interest of the public to know what is happening to each of these institutions,” he announced.
Oni reiterated CBN’s commitment to forge ahead with the cleansing exercise despite huge challenges, saying “CBN is not going back and that is why we have set the rules and the templates in dealing with each of the failing institutions that may occur.”
On if the CBN had the powers for its actions, the director of banking supervision said “as to whether due process was followed, I can tell you if you look at the CBN Act, it allows us to extend and grant loans to banks.
“We are covered by the provision of that Act and that was why we took that step and I am aware that for every step that was taken in terms of the measures, all the relevant bodies in the institutions were virtually carried along. Ultimately the board also met to ratify and approve all of those steps that were taken. As to whether we require the authority of legislators to do certain things, I would leave that to the legislators to address


source: businessday online

Group plots takeover of five top banks
BANKING CRISIS: FOR THE RECORDS, Headlines Aug 26, 2009 By Omoh Gabriel & Emeka Mamah
LAGOS — LAGOS— Vanguard , your best-read newspaper, 23 March 2009, did a world exclusive on alleged plot by a group of individuals to take over five banks in the country.

Two weeks ago, the new Central Bank of Nigeria Governor, Mallam Sanusi Lamido Sanusi sacked the chief executives and boards of five banks, therefore confirming our scoop of March 23.

The story:ANTI-CONSOLIDATION forces have regrouped with the hope of dismantling the structures and forcing a takeover of the top five banks in the country, Vanguard can now reveal. The grand plan by the group is to cause panic and uncertainty in the industry and make the target banks look unsafe for depositors

Meantime, indications emerged yesterday that the Federal Government may announce the names of a new Governor of the Central Bank (CBN) and the Auditor-General of the Federation (AGF) in April just a few weeks before the tenure of the incumbents run out.

However, the Arewa Consultative Forum (ACF) has expressed concern over what it described as the rapidly deteriorating liquidity situation in the banking industry and tasked the Central Bank (CBN) to make public information on causes of the development as well as the scale of the crisis.


The Exclusive report on the present banking crisis shown here as published by VANGUARD March 23, 2009.
Vanguard investigations revealed that the aim of the anti-consolidation forces is to cause loss of public confidence in the banking industry and compel the Federal Government to move in by injecting funds. Further, they ultimately plan to instigate government to take equity holdings in the targeted banks.

Vanguard gathered that the group at work is made up of former bank owners who lost out during the consolidation exercise, a powerful clique in the present government, and some aggrieved persons in three of the six geopolitical zones in the country who felt left out in the consolidation exercise.

Presidency sources disclosed that those who felt left out in the consolidation exercise are up in arms to recoup what they felt they lost during Obasanjo years.

Part of the plans hatched by the group is to ensure that the incumbent Governor of the Central Bank, Professor Chukwuma Soludo, does not get a second term. The plan is also to ensure that whatever gains consolidation recorded are discredited.

This, it was learnt, was meant to force the President to act quickly in the matter of appointment of a successor to Soludo as they anticipate that the president’s slow move may scuttle their dreams and cause the renewal of Soludo’s re-appointment for a second term.

The group’s second game plan is to make Nigerian banks look unsafe in the eye of the banking public. Part of the game is to spread rumours that some banks are unsound and are on the verge of collapse. They send out text messages to individuals and account holders passing wrong information on their target banks. At the moment, the group’s target is one of the high-flying new generation banks where they have sent out several messages.

New CBN Gov, Auditor-General to emerge April
The tenure of the CBN Governor, Professor Chukwuma Soludo and Auditor-General of the Federation, Mr. O. R. Ejenavi from Delta State will lapse in May 2009.

Naming nominees for the top jobs, according to a presidency source, will afford the Senate ample opportunity to work on them before they assume office.

While Soludo will complete his first term in office as CBN governor by May 29, Ejenavi will be due for retirement on age grounds on May 18.

However, among those being considered for the position of CBN governor include the Minister of National Planning, Dr Shamsuddeen Usman from Kano, who was a former Finance minister and deputy governor at the apex bank; another former CBN deputy governor, Obadiah Mailafia from Nassarawa, Mallam Isa Hayatudeen from Borno, a former managing director of FSB International Bank, incumbent Managing Director of First Bank, Mallam Sanusi Lamido Sanusi, also from Kano, and Mallam Falalu Bello from Kaduna, Managing Director, Unity Bank.

But the most touted name so far is that of Mallam Isa Yuguda, the Bauchi State governor who won election on the platform of the All Nigeria peoples Party, ANPP, but defected to the ruling PDP last week. Yuguda is also an in-law of President Umaru Yar’Adua. Yuguda was also a former Managing Director of Inland Bank, a legacy bank in post-consolidation FinBank.

Past CBN governors include late Dr. Clement Isong (Akwa-Ibom), Alhaji Adamu Ciroma (Yobe); Mr. Ola Vincent (Lagos), late Alhaji Abdulkadir Ahmed (Bauchi); Mr. Paul Ogwuma (Abia), Dr. Joseph Sanusi (Ondo) and the current Professor Charles Soludo (Anambra).

It was also gathered that strict obedience to civil service rules will be observed in the appointment of a new Auditor General for the Federation going by the constitutional provision.

Section 86 Subsection 1 of the 1999 constitution states: “the Auditor-General for the Federation shall be appointed by the President on the recommendation of the Federal Civil Service Commission, subject to the confirmation of the Senate.”

That of the CBN may be determined by other factors, mostly political considerations which are at the pleasure of the President without recourse to the commission.

The most senior director in the office of the Auditor-General currently is Mr. Ogunsina G.F from Ekiti State who may be appointed unless there is political maneuvering. Having been a director since 2004, it may not be smooth sailing for Ogunsina because, there is another senior civil servant Mr. Osonuga T. A. from Ogun State who was promoted a director in 2007 and is being propelled by other forces to occupy the office.

It’s unfortunate top 5 banks are targeted, says official
A CBN official who spoke on condition of anonymity said that it is unfortunate that top five banks are the target. The banks, he said, are sound. The CBN had mistaken in the past the ongoing move as de-marketing by competitors in the banking industry, saying it is unhealthy competition.

The group is using this means to make depositors panic and undertake massive withdrawal of funds from the targeted banks in an attempt to cause liquidity problem in the bank. In that state they hope to cause a take over by the government which may buy a stake in the bank and later sell to members of the privileged group who may be appointed in the interim into the board of the banks.

Arewa worries over liquidity problem
However, the Arewa Consultative Forum (ACF) expressed concern over what it described as the rapidly deteriorating liquidity situation in the banking industry and tasked the Central Bank (CBN) to inform the people the cause of the development as well as the scale of the crisis.

ACF said that the commercial banks must have obviously lent too much money to people who either invested them in buying stocks or in the importation of petroleum products in the country, but are unable to repay such loans.

A statement signed by the National Publicity Secretary of the Forum, Mr. Anthony Sani however blamed the CBN for enquiring “into the volume of the so-called toxic assets of the commercial banks while refusing to tell Nigerians how or why in the first place, the banks found themselves in trouble.

The statement reads “The Working Committee of the National Executive Council of the Arewa Consultative Forum (ACF) held its meeting at its national headquarters in Kaduna on Tuesday, the 17th of March 2009. In attendance were all National officers of the ACF drawn from the 19 northern states and the Federal Capital Territory (FCT). General IBM Haruna, the Chairman presided.

“Among other things, the meeting reviewed and discussed a number of issues and other troubling developments in the country. At the end, it resolved to issue the following statement.

“The ACF deliberated on the rapidly deteriorating liquidity situation in the banking industry and observed that Nigerians are feeling increasingly frustrated by the failure of the Central Bank of Nigeria (CBN) to disclose the true the true nature and the scale of the crisis.

“Even members of the National Assembly, despite their best efforts, have been unable to get to the truth of the matter.
According to Arewa consultative forum “All that seem obvious is that our commercial banks had lent out too much money to too many people who had invested them in stocks or petroleum importation but who are now unable to pay back. Beyond that, the public has no clear idea as how or why the loans were given and on what terms.”

New things happen every day.

[center]For what it's worth, bank CEO's in the country will start to run the banks with a semblance of professionalism. It is sad that while hardworking and honest entrepreneurs find it difficult to get a credit line, young graduates are forced to take desperate measures to meet impossible targets, unscruplus charges are being deducted from customers deposits, all in a bid to line the pockets of the czars of the finance industry, and the pockets of their cronies, thereby continually mopping up funds from the poor, and giving to the rich! [/center]  

WHY ARE MOST PEOPLE PITYING HIM(erastus akingbola). WHEN HE WAS BUYING "PRIVATE AND PUBLIC JETS" WHAT WAS HE THINKING ABOUT??. WAS HE THINKING THAT THE 'GOOD GOING' WILL LAST FOREVER? WHY IS HE RUNNING FROM THE LAW?