Nigerians were cheering sanusi when he embarrassed some bank ceos especially Mrs Cecilia ibru who comes from Delta state. she was humiliated and sacked. people from a particular section of the country who are notable for rejoicing whenever any billionaire from the SS is tagged corrupt started clapping. However, sanusi took the war too far by banning what he called "global banking". I had a little reservation then but did wonder why most people who cheered sanusi action did not foresee any danger in imposing a ban on global banking.

now what is global banking? the system where banks invest in other businesses like owning real estate companies, insurance companies, etc and using money from those businesses to pay dividends and to take care of their staff and running cost. Well, Cecilia ibru was notable for global banking. she partnered universities to build hostels and collected rents, built houses in VI, etc and then oceanic bank shares were hot cake because the money made from those investments were shared among share holders. but when sanusi banned global banking, the shares of Nigerian banks lost their values. shareholders no more scrambled for them

some pension fund administor (PFA) where set up by banks maybe as a sharp way of getting cash from pension funds for long term investments and loans. But when global banking was banned, the banks where requested to ensure they get a different license for the PFA and ensure they operate as two different companies. Fund from pension must not be used by the banks and fund from the banks must not be used for the PFA activities. That may look good, but the issue of global banking here shouldn't have been totally banned at least getting funds from real estate investment makes some sense. in this period of TSA, if CBN allow the banks to commence global banking it would save the situation.

How did it affect the banks? banks now rely only on interest gotten from loans before they can expand. they no more have a right to own other business investments except bank. Now that Treasury Single Account was introduced, all agencies and department of government now keep their cash worth trillions of naira with the CBN, they no more bank with commercial banks.

Commercial banks only source of money now is the salary of civil servants which hardly stay for up to 15 days before the hungry civil servants comes back to withdraw it. Worse of all 27 states are no more paying salary, so civil servants can't pay back loans collected. since the banks depend on interest from loans to pay salary, how are they going to pay their staff, how are they going to get money to give to investors in the power sector and oil industry who currently have been unable to repay previous loans?

Instead of banning banks from sacking staff, the. government of odua buhari should reconsider allowing the banks to go on global banking. Policy change is best not use of order, threats or force. Am sure no amount of force, order etc will stop a bank from liquidation when they are tired. Even CBN trying to stop us from withdrawing above N10,000 will not stop banks from the pending liquidation

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According to you 'SW people' were clapping at the collapse of Cecilia Ibru's Oceanic.


So, Akingbola whose Intercontinental Bank also collapsed spectacularly is not from the SW.

Is there anything you people will not blame SW for?