Atedo Peterside, Chairman of Stanbic IBTC Bank Nigeria Plc issued this statement at 10 AM, this morning to international bankers at the on-going CBN Town Hall meeting at Andaz Hotel, 40 Liverpool Street, London EC2M 7QN.

"Good Morning Ladies & Gentlemen,

I stand before you this morning to introduce Mr Sanusi Lamido Sanusi, the Governor of the Central Bank of Nigeria (CBN).

From the time I became the founding CEO of IBTC in 1989 to date, I have worked closely with five different Governors of the CBN. When IBTC was founded in February 1989, it was a small investment bank with great ideas. We were able to win lucrative advisory mandates and hire some of the most talented Nigerian bankers. By the time I resigned as CEO in September 2007 we had metamorphosed into a Universal bank, merged with Stanbic Bank post-consolidation to become Stanbic IBTC Bank PLC - a subsidiary of Standard Bank of South Africa. I was elected Chairman of Stanbic IBTC Bank on the same day I resigned as CEO in 2007. During the course of my tenor as CEO and more lately as Chairman, I have therefore witnessed the appointment of four CBN Governors and worked closely with five.

Historically, Nigeria has oscillated between appointing economists or banking/finance experts as CBN Governors.

As some of you might be aware, when Governor Lamido Sanusi's predecessor in office - Professor Charles Soludo (an economist) was appointed in 2004, my disagreement with him on policy was so vehement that I chose to go public with it. In a published letter to him dated 12 July 2004, which appeared in The Guardian Newspaper on 21 July 2004, I pointed out that, on banking consolidation, Governor Joseph Sanusi (1999 -2004, Soludo's predecessor) did "too little too late" and that his approach was "frustrating but not dangerous". I then cautioned that in my opinion Governor Charles Soludo's approach/actions translated into ", trying to do far too much and far too soon" and that we might therefore be ", swinging from one extreme to another and that is very dangerous". As we all know, throughout his tenure, Professor Charles Soludo appeared to be pushing Nigerian banks to expand aggressively both domestically and internationally.

A few months after the advent of the current global financial crisis it became evident to all those who were discerning that a handful of Nigerian banks were in trouble. At the very least, they were guilty of bad judgement. Some say that two or three of these banks grew too big too fast and were simply destined to implode. Whatever be the case, it was clear that they had misread the severity of the economic downturn and the collapse of asset and commodity prices (including the Nigerian stock market index and crude oil prices) and had lent large sums of money to people (including some insiders) who did not have a semblance of a business plan. Their loan losses were so significant that they became clearly illiquid and became increasingly reliant on Government "life-support" via continued reliance on CBN's expanded discount window. Weak risk management and lopsided corporate governance practices did not help either.

The Emperor had no clothes on, but CBN under Charles Soludo insisted that he was fully clothed and, indeed, threatened sanctions against any Bank CEO whose staff dared to make reference to this "open secret" that the capital of a handful of Nigerian banks was almost completely eroded. They called this "de-marketing" of the competition and even turned the clock back on greater financial disclosure and transparency.

Perhaps Governor Soludo was seeking a second term for himself before seeking clothes for the naked emperors?

Enter Mr Sanusi Lamido Sanusi a seasoned and knowledgeable economist and professional banker/risk manager with impeccable credentials, including, notably, integrity and a penchant for telling the truth at all times - hence his bias towards full disclosure and transparency.

I make this declaration publicly and without any hesitation because Lamido is a man I have known for over 35 years. We are both economists and professional bankers and our paths have crossed repeatedly over the years. Lamido is intelligent, bold, courageous, independent, straightforward, honest and humble.

I believe Lamido's recent actions have also helped to provide the spark to President Umaru Yar 'Adua's Presidency. Our President must, of course, take the credit for having the foresight to appoint Lamido and for backing him on this important rescue mission because as we all know, DOING NOTHING WAS NO LONGER AN OPTION.

Ladies and gentlemen, I present Mr Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria."

GBAM!!!

Sanusi is a breath of fresh air!

What an introduction.
Hopefully, with the respect that Atedo Peterside has, people may begin to give Sanusi some leeway to do his work.

Soludo knocked out himself.

Epiphany:

What an introduction.
Hopefully, with the respect that Atedo Peterside has, people may begin to give Sanusi some leeway to do his work.

wonder why stanbic steered clear of those multiple award winning banks when they were shopping for a naija partner. perhaps they saw beyond the 'thousands of employees etal ?

With this kind of endosement I think SLS will quickly order his boys to stop any form of audit for Atedo's bank They have passed 100% abi I lie?

But jokes apart we know that Soludo's approach had its drawbacks, but is it not rather painful that Atedo would summarise Soludo's tenure this narrowly. TOO BAD.

If they expect this statement to reinforce the confidence of foreigners in our financial system then they must be joking. While the statement might be helping to accomplish what Sanusi and his ilk want. It also helping achieve what they dont want.

Lets open our eyes and see, they are actually nailing the coffin of the 5 banks and diminishing the credibilty of the banking system generally.

I fear fear.

qblaze:

Atedo Peterside, Chairman of Stanbic IBTC Bank Nigeria Plc issued this statement at 10 AM, this morning to international bankers at the on-going CBN Town Hall meeting at Andaz Hotel, 40 Liverpool Street, London EC2M 7QN.

"Good Morning Ladies & Gentlemen,

I stand before you this morning to introduce Mr Sanusi Lamido Sanusi, the Governor of the Central Bank of Nigeria (CBN).

From the time I became the founding CEO of IBTC in 1989 to date, I have worked closely with five different Governors of the CBN. When IBTC was founded in February 1989, it was a small investment bank with great ideas. We were able to win lucrative advisory mandates and hire some of the most talented Nigerian bankers. By the time I resigned as CEO in September 2007 we had metamorphosed into a Universal bank, merged with Stanbic Bank post-consolidation to become Stanbic IBTC Bank PLC - a subsidiary of Standard Bank of South Africa. I was elected Chairman of Stanbic IBTC Bank on the same day I resigned as CEO in 2007. During the course of my tenor as CEO and more lately as Chairman, I have therefore witnessed the appointment of four CBN Governors and worked closely with five.

Historically, Nigeria has oscillated between appointing economists or banking/finance experts as CBN Governors.

As some of you might be aware, when Governor Lamido Sanusi's predecessor in office - Professor Charles Soludo (an economist) was appointed in 2004, my disagreement with him on policy was so vehement that I chose to go public with it. In a published letter to him dated 12 July 2004, which appeared in The Guardian Newspaper on 21 July 2004, I pointed out that, on banking consolidation, Governor Joseph Sanusi (1999 -2004, Soludo's predecessor) did "too little too late" and that his approach was "frustrating but not dangerous". I then cautioned that in my opinion Governor Charles Soludo's approach/actions translated into ", trying to do far too much and far too soon" and that we might therefore be ", swinging from one extreme to another and that is very dangerous". As we all know, throughout his tenure, Professor Charles Soludo appeared to be pushing Nigerian banks to expand aggressively both domestically and internationally.
A few months after the advent of the current global financial crisis it became evident to all those who were discerning that a handful of Nigerian banks were in trouble. At the very least, they were guilty of bad judgement. Some say that two or three of these banks grew too big too fast and were simply destined to implode. Whatever be the case, it was clear that they had misread the severity of the economic downturn and the collapse of asset and commodity prices (including the Nigerian stock market index and crude oil prices) and had lent large sums of money to people (including some insiders) who did not have a semblance of a business plan. Their loan losses were so significant that they became clearly illiquid and became increasingly reliant on Government "life-support" via continued reliance on CBN's expanded discount window. Weak risk management and lopsided corporate governance practices did not help either.

The Emperor had no clothes on, but CBN under Charles Soludo insisted that he was fully clothed and, indeed, threatened sanctions against any Bank CEO whose staff dared to make reference to this "open secret" that the capital of a handful of Nigerian banks was almost completely eroded. They called this "de-marketing" of the competition and even turned the clock back on greater financial disclosure and transparency.

Perhaps Governor Soludo was seeking a second term for himself before seeking clothes for the naked emperors?

Enter Mr Sanusi Lamido Sanusi a seasoned and knowledgeable economist and professional banker/risk manager with impeccable credentials, including, notably, integrity and a penchant for telling the truth at all times - hence his bias towards full disclosure and transparency.

I make this declaration publicly and without any hesitation because Lamido is a man I have known for over 35 years. We are both economists and professional bankers and our paths have crossed repeatedly over the years. Lamido is intelligent, bold, courageous, independent, straightforward, honest and humble.

I believe Lamido's recent actions have also helped to provide the spark to President Umaru Yar 'Adua's Presidency. Our President must, of course, take the credit for having the foresight to appoint Lamido and for backing him on this important rescue mission because as we all know, DOING NOTHING WAS NO LONGER AN OPTION.

Ladies and gentlemen, I present Mr Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria."

1. Why go to London (and maybe New york later) to explain to ordinary Nigerians(okay to some foreign banks) Lamido Sanusi actions, when a statement , press relase will explain the problem. It is typical Nigerian mentality of travelling with all the estacode and nonsense. Most Central bank governor simply release messages to all the Central banker's governor forum. In any event once the act is done, the market will react. when you are doing the act , you explain, and not wait further before explaining, the market want answers immediatetly.

2. 'Swinging form one extreme to the other' - that is exactly what Lamido is doing. He was barely 3 months into his tenure before all this. Even though CBN is a regulator, it needs to provide soft landing without alllowing panic taking into account the Nigerian people psyche and the international financial markets, they are too different audience. The job of the CBN governor is to provide continuity without anybody noticing. It is not like a politician who will reverse his predecessor before thinking and re reverse himself.

3 The fact that Atedo peterside and Lamido are both Economist and bankers does not make Soludo an economist less able to manage. The only plus is that Lamido is from Risk Management background, and that helps. Expansion is not the problem, it is the lack of diversification in the economy that also affects borrowers.

THE PROBLEM IN THE BANKING SECTOR IS CAPITAL MARKET INVESTMENT THAT WENT SOUR BY OVER EXPOSURE TO A DEVELOPING STOCK MARKET IN NIGERIA, AND VALUES OF STOCK WENT SOUTH VERY QUICKLY BECAUSE OF THE WORLD ECONOMY.

4. Lamido recent action provide spark to YAR A'DULL - what a statement even though it is NOT a revelation on a YAR A'DO NOTHING of a leader

In my own opinion Soludo CBN regulatory oversight responsibility is weak. Too much emphasis on Stock  market, Oil and Gas and the overpriced Real Estate sector - he has not persuade and ensure that banks lend to small and medium businesess to grow the Nigerian Economy.

I think Lamido may have taken the Fire Brigade mentality when Nigerians are already on the edge.

The good thing about bad things is that it will come to an end. SOLUDO HAS COME TO AN END TODAY, ONE DAY LAMIDO WILL COME TO AN END, AND ANOTHER PRAISE SINGER LIKE ATEDO PETERSIDE WILL GO WITH HIM.

Ibime:

GBAM!!!

Sanusi is a breath of fresh air!

bros na poisonous air be sanusi o

How can we be sure this is not just another sycophant, antecedents apart? It is too early to applaud the decisions of Sanusi Lamido Sanusi, IN MY OPINION. Rather we should wait and see the results of his reforms before either praising him to the high heavens or crucifying him. We heard more than that at the start of Soludo and others before him. We need to exercise patience and not rely on someone's opinion and so-called experience!!!

nigerrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr!

na_so:

bros na poisonous air be sanusi o

yeah poison to the book cookers

The POLITICS continues!!!!!!!!!!!!!!


for a so called founder of a bank you will think he will talk a lil bit of economics, he is rather telling us folk tales about a naked emperror. Is there a better way to identify an empty head.

I have said it and I will say it again. 12 to 18 months down the line, Sanusi will no longer have the luxury of attacking other people's records . . . . . .he will have to defend his own records and results.

Unfortunately he has not started very well.


ITS AMAZING THAT SANUSI TODAY CLAIMED THAT GIVEN THE REFORM HE IMPLEMENTED SINCE COMING TO OFFICE NIGERIAN BANKS ARE NOW STRONG.

He must have reformed them in 2 weeks.

vigasimple:

1. Why go to London (and maybe New york later) to explain to ordinary Nigerians(okay to some foreign banks) Lamido Sanusi actions, when a statement , press relase will explain the problem. It is typical Nigerian mentality of travelling with all the estacode and nonsense. Most Central bank governor simply release messages to all the Central banker's governor forum. In any event once the act is done, the market will react. when you are doing the act , you explain, and not wait further before explaining, the market want answers immediatetly.

2. 'Swinging form one extreme to the other' - that is exactly what Lamido is doing. He was barely 3 months into his tenure before all this. Even though CBN is a regulator, it needs to provide soft landing without alllowing panic taking into account the Nigerian people psyche and the international financial markets, they are too different audience. The job of the CBN governor is to provide continuity without anybody noticing. It is not like a politician who will reverse his predecessor before thinking and re reverse himself.

3 The fact that Atedo peterside and Lamido are both Economist and bankers does not make Soludo an economist less able to manage. The only plus is that Lamido is from Risk Management background, and that helps. Expansion is not the problem, it is the lack of diversification in the economy that also affects borrowers.

THE PROBLEM IN THE BANKING SECTOR IS CAPITAL MARKET INVESTMENT THAT WENT SOUR BY OVER EXPOSURE TO A DEVELOPING STOCK MARKET IN NIGERIA, AND VALUES OF STOCK WENT SOUTH VERY QUICKLY BECAUSE OF THE WORLD ECONOMY.

4. Lamido recent action provide spark to YAR A'DULL - what a statement even though it is NOT a revelation on a YAR A'DO NOTHING of a leader

In my own opinion Soludo CBN regulatory oversight responsibility is weak. Too much emphasis on Stock  market, Oil and Gas and the overpriced Real Estate sector - he has not persuade and ensure that banks lend to small and medium businesess to grow the Nigerian Economy.

I think Lamido may have taken the Fire Brigade mentality when Nigerians are already on the edge.

The good thing about bad things is that it will come to an end. SOLUDO HAS COME TO AN END TODAY, ONE DAY LAMIDO WILL COME TO AN END, AND ANOTHER PRAISE SINGER LIKE ATEDO PETERSIDE WILL GO WITH HIM.

Because the foreign banks loan money to our banks and collect letter of credit form our banks. So some might want to know what is happening and that is what the meeting was about.

And talking about Panic, have you seen long lines at banks and people saying they have problems redrawing their money? Of course some people were worried and went to redraw their money or ask question.

oyb:

yeah poison to the book cookers

Nice one   .

But lets get serious if this  Atedo's summary is a reflection of sanusi's take on  soludo's tenure then I see problem. Simply because its too narrow.


I will never support book cookers, however let the procedure for determining that be clean in itself. You dont fight illegality with  illegality.

If the findings later show that no special audit was really carried out , then sanusi would still be guilty of cooking "audit findings" even if the sacked CEOs have not been clean.

Also what   message does it pass to neutral's when the "unbiased umpire" (CBN)  now has an image maker in the  chairman of one of the banks currently being audited? Abeg make we talk true na.

na_so:

Nice one   .

But lets get serious if this  Atedo's summary is a reflection of sanusi's take on  soludo's tenure then I see problem. Simply because its too narrow.


I will never support book cookers, however let the procedure for determining that be clean in itself. You dont fight illegality with  illegality.

If the findings later show that no special audit was really carried out , then sanusi would still be guilty of cooking "audit findings" even if the sacked CEOs have not been clean.

Also what   message does it pass to neutral's when the "unbiased umpire" (CBN)  now has an image maker in the  chairman of one of the banks currently being audited? Abeg make we talk true na.

That is Atedo's point of view. The funny thing is since he became Governor, Sanusi has so far not directly criticized Soludo. If you have followed Sanusi before he became Governor he criticized Soludo and the CBN.

Can the poster please post a link to the article.

mikeansy:

The POLITICS continues!!!!!!!!!!!!!!


for a so called founder of a bank you will think he will talk a lil bit of economics, he is rather telling us folk tales about a naked emperror. Is there a better way to identify an empty head.

Isn't it painfully clear that Atedo was merely introducing Sanusi? Is he supposed to break out the powerpoint charts when making an introduction? Sanusi was the one billed to discuss economics, not Atedo.
Please stop with the silly comments about the 'naked emperor'. This fable is apt as a fitting metaphor in this case.

mikeansy:


I have said it and I will say it again. 12 to 18 months down the line, Sanusi will no longer have the luxury of attacking other people's records . . . . . .he will have to defend his own records and results.

Unfortunately he has not started very well.

Since when did you become a prophet?
Sanusi has forced a bitter pill down your throat, so you don't have to choke down poison later on. You'd much rather have had the banks go to ruin before anything was done, abi?

The papers today report that over 26 billion naira debt has been recovered by the banks in question since Sanusi took action. Is that not a positive? Are you not aware that banks had resorted to paper adverts begging the presidency to help them recover debts BEFORE sanusi took action?

You people do not have the stomach for a revolution, or any action that could break a few greedy eggs. Too bad.

Sanusi's interview with bloomberg


http://www.bloomberg.com/avp/avp.htm?N=video&T=Sanusi%20Interview%20on%20Nigerian%20Banks%2C%20Economy%20&clipSRC=mms://media2.bloomberg.com/cache/v_LK4H9oC9uQ.asf

Unfortunately, some folks are bringing ethnicity into this Soludo/Sanusi debate.

As far as Im concerned, what matters is the effectiveness of Sanusis measures.

So far, I give the nucca an A+ for performance.

Infact, he is the only positive thing coming out from Yar'Aduas Government.

texazzpete:

Sanusi has forced a bitter pill down your throat, so you don't have to choke down poison later on. You'd much rather have had the banks go to ruin before anything was done, abi?

The papers today report that over 26 billion naira debt has been recovered by the banks in question since Sanusi took action. Is that not a positive? Are you not aware that banks had resorted to paper adverts begging the presidency to help them recover debts BEFORE sanusi took action?

You people do not have the stomach for a revolution, or any action that could break a few greedy eggs. Too bad.

GBAM!!!

Atedo Peterside! I no know say the man na correct Em-Cee o. Kai! See introduction!!!

This is not about tribal affiliation like some people would turn it into.

Sanusi exposed a major flaw in the Soludo CBN tenure that Soludo overlooked.

How an Intercontinental bank grew from 2004 to 2008 is nothing short of voodoo.

I know a lot about these banks especially Intercontinental and IBTC as an insider. The bad loans tagged as performing were just waiting to explode in their face.

OBJ is a Yoruba man and I criticize him and would criticize him everyday for the ruins he brought the country into.

A Soludo was a refreshing change from the Do-nothing Joseph Sanusi anyway.

The issue here is the issue of pull-him-down as exhibited by Mr Atedo, as inappropriate as having him do the introduction is, it's made worse by the unnecessary sycophancy in his introduction,however factual it may be, we need to appreciate the people of the past and not link their shortcomings to their successor's strength, leave SLS to do his job and let his works speak for him!!

qblaze:

Atedo Peterside, Chairman of Stanbic IBTC Bank Nigeria Plc issued this statement at 10 AM, this morning to international bankers at the on-going CBN Town Hall meeting at Andaz Hotel, 40 Liverpool Street, London EC2M 7QN,

Ladies and gentlemen, I present Mr Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria."

abeg wey de source of this introduction, I don search web tire and I no see am. Please give us link.

And the politics continues. We shall see the end.

Big man talk, poor man say he has idea, what can of idea is that?, whatever we say here will not change the next venue of their meeting to torontoor Iraq, meeting outside the country will reduce the information a common man will have access to. DEM ALL THIEVES

presido1:

And the politics continues. We shall see the end.

Well Spoken,these men always have a way of shooting themselves in the foot.Let's just hope that he is not going to be one of them.

When the likes of Atedo Peterside or Fola Adeola talks, you listen.

London School of Economics-trained Atedo is the father of investment banking in Nigeria. He laid the foundation for what is now known to be a booming investment banking in Nigeria.

He has the whole economy in his head.
One of the most respected CEO in Nigeria.
Atedo endorsement is a major boost to Sanusi's reforms.

When the likes of Atedo Peterside or Fola Adeola talks, you listen.

London School of Economics-trained Atedo is the father of investment banking in Nigeria. He laid the foundation for what is now known to be a booming investment banking in Nigeria.

He has the whole economy in his head.
One of the most respected CEO in Nigeria.
Atedo endorsement is a major boost to Sanusi's reforms.

dayokanu:

This is not about tribal affiliation like some people would turn it into.

Sanusi exposed a major flaw in the Soludo CBN tenure that Soludo overlooked.

How an Intercontinental bank grew from 2004 to 2008 is nothing short of voodoo.

I know a lot about these banks especially Intercontinental and IBTC as an insider. The bad loans tagged as performing were just waiting to explode in their face.

OBJ is a Yoruba man and I criticize him and would criticize him everyday for the ruins he brought the country into.

A Soludo was a refreshing change from the Do-nothing Joseph Sanusi anyway.

While I applaud you for having the fortitude to critisise your fellow countryman , ( Obasanjo), but that would be the only thing refreshing about your post to be honest.

Your analysis about how Intercontinental grew from 2004 to 2008, ( whatever that means) is questionable considering your claim to be an insider in the banking industry.I would have expected as most people that you would be more knowledgable about the dynamics of the banking industry in Nigeria in terms of the fact that the Financial sector in Nigeria is very asymmetrical to those of most countries, hence we have a situation where banks in Nigeria are not economically engines of growth but merely a fundraising for Oil magnets,Monopolists,speculators etc to raise quick cash, so really anybody/person with funds could easily set up a bank in Nigeria , give out money in the short term at ridiculous interest rates and make money.

I personally would wait for a few more months to judge Lamido on his current actions, because I cannot honestly say I understand his motives, ( yes right step in right direction), but it could equally be another case of vendatta.If I were you ,I would be quite cautious in my assertions

The same way we celebrated the endorsement of Soludonomics by the Okonjo-Iwealas and d World Banks and IMFs, no man's infallible and as such, it doesn't behove on a man of such learning to openly castigate d Soludo era as he did in such manner, tis jst d same ol' Messiah-of-our-time stage Soludos, Ribadus, el-Rufais of our world!