Rooneyboy:

An Aboki still remains an Aboki no matter how learned he is. Their thinking faculty still drops to a certain extent.

Wallow in your ignorance son, after all it is bliss

Rooneyboy:

An Aboki still remains an Aboki no matter how learned he is. Their thinking faculty still drops to a certain extent.

u are right, all what they know is to thief our money and there is absolutely nothing for them to offer(go to the federal ministries and see what they are doing there, u cannot see an aboki person in a ministry where there is no money, even u will see some been transfered on level 5 at their state ministry to level 7 at federal level and this transfer thing is only applicable only to the northerner )he thinks he knows better than Soludo.

@ Rooneyboy. It is better to say nothing & it means something, than 2 say something & it means nothing. Can u work at a bank's counter?

itr shd be so coz ialso will sell my shares

He seems lost. I won't be surprised if he wakes up one morning and says that he's surprised he is the CBN governor.

@ foyeks2001. I think u r just pro-hearsay.

well i will say the solution is not about printing gazzallion naira, if you and i cannot lay our hands on that money. If the CBN governor trully wants to boost Nigeria economy he should pay in at least 40k naira as economy boost bonus to every citizen of this country bank account, so that a barber can be able to buy clippers for his business, a farmer can be able to buy new modern machineries, and so on.

His plan was for Abokis to take over the Banking Sector and that is just the outcome, he is just lamenting as if he is serious, those that are buying those shares are the Abokis.

He took a bazooka to kill a mosquito and is now wondering why his house is a rubble. Kai!!!

To put it succintly sanusi is incompetent!

well i will say the solution is not about printing gazzallion naira, if you and i cannot lay our hands on that money. If the CBN governor trully wants to boost Nigeria economy he should pay in at least 40k naira as economy boost bonus to every citizen of this country bank account, so that a barber can be able to buy clippers for his business, a farmer can be able to buy new modern machineries, and so on.
are u serious?

All these condemnation of Sanusi is unwarranted. He is an aboki but a good aboki who knows his job.

You have to be a victim of a failed/distressed bank to know what it truely means. Na so E be like film. My money is still tied up in Societe Gen bank till tomorrow. Any good thing has a price.

Ibru and co were removed from mgt but they still own zillions of shares nobody is taking away. They have also made zillions of dollars from these banks.

Abeg make all of una chill. If Sanusi has a hidden agenda, I have not seen it yet. I have been watching those northerners a long time. I know when they are up to no good.

What we had was unstainable. Someone had to do sth or else the whole structure would have crumbled. What we need is a few more CEO scapegoats.

The market? Dont worry about it. Things will pick up. Illegal pyramid schemes have always succeded in Nigeria inspite of losses let alone a Government backed and approved stock market.

he will be mo sop-rice to resign and seek asylum@exile


Watch out for the malo/abokis spending spree since they took over 9ja

;d ;d ;d ;d

The amount of ethnically-tinged vitriol on this thread is simply nauseating.

Nigerians having lost their life savings in the last bubble burst can be forgiven for being too tentative to reinvest in the stock market.

Having recapitalised the banks, any developed economy would see re-investment from shareholders. Sanusi is correct in stating that this is the best time to buy.

However, what assurances do we have that corruption will not seep into the market and eat away our savings like last time?

The stockmarket does not stand alone in Nigeria. As long as the rest of the country is sick, and on the precipice of collapse, the political risk of investing in anything to do with ONE NIGERIA is just too great.

Ibime:

The amount of ethnically-tinged vitriol on this thread is simply nauseating.

Nigerians having lost their life savings in the last bubble burst can be forgiven for being too tentative to reinvest in the stock market.

Having recapitalised the banks, any developed economy would see re-investment from shareholders. Sanusi is correct in stating that this is the best time to buy.

However, what assurances do we have that corruption will not seep into the market and eat away our savings like last time?

The stockmarket does not stand alone in Nigeria. As long as the rest of the country is sick, and on the precipice of collapse, the political risk of investing in anything to do with ONE NIGERIA is just too great.

ibeme,

thank you for ya comments. de comments dey devoid of de typical tribal jingoism wey typify many posts here.

abeg make you educate me on dis ya statement: "the political risk of investing in anything to do with ONE NIGERIA is just too great". why you capitalize one nigeria.? i follow de good analysis wey you make, but dis your last statement threw me off. i go appreciate if you explain am to be please.

ndu_chucks:

abeg make you educate me on dis ya statement: "the political risk of investing in anything to do with ONE NIGERIA is just too great". why you capitalize one nigeria.? i follow de good analysis wey you make, but dis your last statement threw me off. i go appreciate if you explain am to be please.

Simply that no matter how much any one sector is sanitised, as long as the country as a whole is held ransom to executive malfeasance, it is like pissing in the rain. As much as guys like Ribadu, Soludo, Sanusi and Okonjo-Iweala do their best in their respective sectors, their efforts are somewhat undermined by the pervasive corruption and incompetence which will inevitably seep into their respective sectors. A country where one man can simply walk away with your life savings and guys like Aondoaaka would do nothing to prosecute him. Look at the amount of people/journalists defending the executive crooks who stole their money in the first place. Not to mention political instability. Who wants to invest in a country full of MEND, MASSOBS, Bakassi Boys and Boko Harams? Can you invest in a sinking ship?

Ibime:

Simply that no matter how much any one sector is sanitised, as long as the country as a whole is held ransom to executive malfeasance, it is like pissing in the rain. As much as guys like Ribadu, Soludo, Sanusi and Okonjo-Iweala do their best in their respective sectors, their efforts are somewhat undermined by the pervasive corruption and incompetence which will inevitably seep into their respective sectors. A country where one man can simply walk away with your life savings and guys like Aondoaaka would do nothing to prosecute him. Look at the amount of people/journalists defending the executive crooks who stole their money in the first place. Not to mention political instability. Who wants to invest in a country full of MEND, MASSOBS, Bakassi Boys and Boko Harams? Can you invest in a sinking ship?

true talk - na dat executive malfeasance wey you mention coupled with endemic corruption wey dey slow us down. i gree say we get issues with MEND, MASSOBS, Bakassi Boys and Boko Harams etc, but e be like say, dat one did not completely stop foreign direct investment for naija.

you sabi say for 2004, foreign direct investment na $2.1 billion, and so far for 2009, de ting don reach $13.95billion sef. most of de investment na for oil and gas sector, banking, telecoms and beverages. to invest in other areas no dey easy, when uninterruptible power supply no dey sef.

if sanusi and cbn fit stabilize de banking industry, more foreign investment go come in. can you imagine de impact on our economy and lifestyle if de malfeasance wey you mention no exist.

may God help us for naija.

If a big bank has a problem and you don't take it out of the market, it would bring down other banks because the big bank, even if it is weak, is able to take market share from a small bank. What would happen is that the big bank would force a number of second- tier, first-tier banks into crisis because they have the clout to take away their market.

So it is now a crime to be a big and successful bank, It is also a crime to position yourself in business to be able to do better than your competitors.

Therefore the best solution proferred by Sanusi is to literally  demarket the banks and sack their CEO's. I sorry for Nigeria.

I am surprised by the reaction to Sanusi's comment from Nairalanders. The Banks are using depositor's money and loaning it to their cronies without adequate collateral. Sanusi came in to sanitize the banking industry and restore good fundamental loan practices to the industry and he is being castigated by the same people that is protecting. Nigerians are shortsighted, we are interested in the immediate gain - the ballooned dividend and the inflated stock prices of these banks that has no relevance to the economic situation.

We trivialize the fundmental issues involved in this case. It is very sad that we are hailing the oppressor.

slap1:

@ foyeks2001. I think u r just pro-hearsay.

i know what am saying, nairalanders should go on a research for themselves(check where am based and i know very well that u are also one of the abokis pretending to be staying in Aba)anyway u can leave ur Aba , come and see what am saying, all what the Abokis knows is just to chop the country money or how many abokis can u find in a private companies(because they know that there is absolutely nothing they can offer for the development of the company and there is  no money to squander over there that is why they prefer working with the government or how many abokis can u find working with your brother Dangote), the only abokis i av so much repects for is Senator Aminu (who had a first class in medicines those days)but the man doesnt want to leave politics because a typical abokis loves money and power.

He had the first class at the University of Ibadan in those days

When Sanusi first went bazooka with his Celebrity messianic announcement,I was one of the very few that saw the doom that Sanusi had spelt for Nigeria.Whether Sanusi has good intentions or not,one thing that was very evident in his announcement was his total lack of finesse for containing the problem.Soludo started with this exercise, when he removed the CEO of Wema Bank after he it was clear the man had run down the bank but he was cautious not to cause unneccessary panic to the financial sector,infact,except U had Ur ears close to the ground,not many knew much about the problems in Wema Bank or the sack,as long as they were getting thier money.During the screening of Sanusi at the senate,I faulted Sanusi on many grounds,he was trying too hard to please everybody and thus was constantly playing to the gallery with his constant criticisms of Nigerian banks and his idea of opening the banks to foreigner which hitherto was limited to 10% or so.Then again one has to consider the fact that he was a commercial banker who spent most part of his career as a risk manager in different banks and must have had brushes with many of these CEOs who then were his bosses.If U ve read some of Sanusi's write-ups,U will know that the man is known for talking tough and has a harsh way of stating his mind,a person like that is any1's favourite foe.Am not saying commercial bankers can't make good CBN govs but if one is to take cognizance of the politics and hierarchical roforofo that go on in the banking sector plus Sanusi's personality,u will agree with me that Sanusi being a commercial banker is not the best choice.
Sanusi has made a lot of mistakes in his bid to hastily solve the problem,he realy did't thoroughly think it through,he should have read every1's countenance especially after the catastrophic fall of the capital market before shelling Nigerians again with a barrage of elaborate and sensational news that Nigerians were too weak to withstand.When I saw that news I was like,"Gosh,another malam that strikes before he thinks,are these guyz all thesame? Couldn't he see that Nigerians were just recuperating 4rm the Mrk crash?
A lot of Nigerians were praising him without actually asking questions like,couldn't he ve solved this problem without actually "masturbating the sector to a dizzying climax with the huge figures he kept flaunting in our face as loss and stuff".Seriously,the majority of nigerians do not need those elaborate details that could send any1 to mental assylum,just do Ur job that's what we want,too much information some times is bad for anyone but Malam Sanusi wont let off,he kept hypnotizing us to lunacy with financial jargons like,"lack of liquidity","failing banks",lack of coperate governance and good mgt",as if numbing us to schizophrenia was not alarming enough,he decided to kill us with hypertension by showing us crazy number digits that could fill a 50litre can as the indebtedness of the 5 five banks.That was the last straw,who in thier right mind will take both Sanusi,the sanitizer and the sacked bank chiefs,the insane seriously and not withdraw every single kobo of thier deposits from those store rooms(according to the malam) they call banks or even sell those worthless share certificates before lunacy makes one to use them to clean one's ass!
His commando staunts have caused more problems than there was before,the economy right now is heaving with a painful sigh of lethargy and is entirely on life support 4rm the oil sector(thanks to the gun-wielding niger deltan boyz).Infact from this article,i get the sense that Mr Malam is beginning to realise that there are more problems than meet the eyes,not even "actor don kill boze"action film stunt he has pulled can wrap up the problem,neither will talking tough,hasty decisions do shit, and yes too much information to the public will only worsen the problem as is evident.An average nigerian is not bothered about those jaw breaking jargons and lengthy campaign speech as long as no zero is amiss from his amount in those banks.Sanusi save us the lecture and do Ur job.

misinformationur argument is pathetic, you will rather trade information for misinformation. The banks have been feeding misinformation for years through their bloated dividend and conducting business in secrecy by giving loans without adequate collateral. In civilized society, margin loans are never at 100% but rather it at 50% with margin calls issued at anytime when the 50/50 ratio is not maintained and when the "calls" are not responded to, the investment banks then sell off enough of the shares to cover the margin as needed. They do not wait until the bottom has fell off the market before selling.

Sanusi came in and exposed all these intrigues so that the oppressed will know the true nature of the oppressor. The banks are not lending to legitimate business but instead lending to people that really are not in need of the loan but loan it to them anyway as a favor or because they know the person as opposed to knowing the business of the person; no collateral and where there is one, the collateral is not enough to justify the amount of the loan and yet we call these people bankers. The bad part of all of these is that these banks are using depositors money - those that they will not loans to and yet, these same "oppressed" like rhymz are crying foul just because the share price of banks' stock now reflect the true values of stock.

Nigeria cannot no longer afford to do business in secrecy, expose all and afterwards the market will adjust and correct itself once the true facts are exposed.

@Timmi,obviously,U ve not understood my point before rushing to criticize my post.If there's anyone who's suffering from a lack of understand of information or misinformation,it's U.Haba!Who is saying the financial sector does't need to be sanitized?My point is that U can't make any correction by making more mistakes.What exactly are U on about,Mr informed?
U claim the banks have been giving loans without adequate collateral,right?
Now if we were to go by that list,we had the likes of Dangote,Jimoh ibrahim,Femi Otedola and thier likes,now if any of these known biz men want to fund capital projects,like the procurement of heavy machineries,building of structures and the likes,they go to the banks for credit lines,show them thier biz plan,if finally the banks agrees to fund the projects,the next thing they do is to draw the terms of agreement and this usually includes the following:
1.The interest rate to be paid on the loan.
2.The time to start paying interest on the money which could be 2,3,4,5yrz depending on the type of project and when the business takes off(of course U don't expect any payment until the actual commencement of the business)
3.Collateral by definition is any property or other security put forward to guarantee the repayment of a loan,this therefore means that it could be a house(mortgage),could be the business,the purchased machinery or even the licence to a bizness which is where I fault Sanusi on many grounds.
First,the so-called non-servicing loans, are they loans for long term,medium term or short term projects,if for instance it's for a long term project and there's an agreement that payment starts when production kicks off,U don't expect the borrower to start making any type of payment when production has not yet started.
However,Sanusi did't tell us any of the categories of these so-called non-performing loans whether they are being used to fund long,medium or short term projects,they just ve to pay them back whether they ve actually finished the projects they were intended for and ve started production or otherwise.There were even cases where government contractors had gone to those banks with government licences and borrowed money from the banks to fund government projects but at the end government is owing them and hence they start to default on payments.But Sanusi wants them to pay even though in the first place the FG is the reason for the default on thier loans from these banks.
Sanusi was right when he said their over-exposure to the capital Mrk and the oil sector exposed them to the hazards which is where I have a problem with the bank CEOs but then again do U blame them?The Nigerian economy is not multifaceted and giving the pressure from the shareholders they just had to bulge in and start doing stuff besides, those five banks are not the only banks that are too exposed to the capital mrk or the oil industry,every1 of em is guilty.
From Sanusi's many decisions,he does't strike me like a person that is thorough,he discovers a problem and then he hastily takes a stupid decision that lacks good timing,just shot himself in the leg.
Besidez replacing the bank CEOs and controversially pumping government money into those banks,he has not achieved much with his sponteneuos decision,he just heated up the system that is why he's spending too much explaining himself than actually doing his job.Like I said before,Sanusi may mean well but his lack of finesse is spoiling everything.Finally Dude,I still ve intentions to sell my intercontinental shares,do U want to buy?Abi U say this is the best time to buy?My guy wake up to reality biko!

UP NIGERIA. As i am sitting here i am as naked as the day i was born. And in my birthday suit i swear that all those so called leaders, including those that have beneffitted from their bad policies and corruption, past and present, will forever rot in hell. He took a bazooka to kill a mosquito and is now wondering why his house is a rubble. Kai!!!

Bidemi12, I love reading your posts, you are a master in "yabbings"

Rhymz:

For your information, the banks and not Sanusi are the ones that submitted the list of non performing loans. Non performing in the sense that the loan is in default and are not being serviced according to the terms of the contract. How is getting and releasing the list on loan defaulters become the fault of CBN and Sanusi.

If the banks received adequate collateral for the loans that were granted out to the list of people that you mentioned - the so called billionares club, how come they (the banks) did not take possession of the collateral, sell them off and recover the loan, but no, some of these people obtain billions of naira in loan on name recognition and some by their closeness to the bank's CEO.

My point is that instead of blaming CBN and Sanusi for doing their statutory duty, we as Nigerians should direct the blame to the bank for not following sound business practises used everywhere and for their secrecy in handling depositor's money. Let the fact speak for itself.

Rhymz:

The quotation below from Mrs Waziri - the EFCC Director buttress my point, at least she is in the know.

"The EFCC boss, who said the commission had made giant strides in the recovery of loans, explained that the loans were granted in complete disregard to banking procedures and questioned the rationale for the granting of a N15 billion loan without collateral.[/b]
If you deny the public the right to know, the anti- corruption war is lost.” While calling for collaboration among the various anti-graft agencies in the country, she said that: “When these agencies work together, they are potentially capable of creating an environment, which could make corruption a very hazardous affair for a public officer.” Mrs. Waziri appealed to Nigerians to take ownership of the war against corruption, adding that it is only through their active involvement that the nation could be saved from the crushing effect of the menace.

“When I launched the Anti-Corruption Revolution (ANCHOR), sceptics thought it was just another jamboree. But, I think the crisis rocking the banking sector has justified our efforts. Were it not for the swift intervention of the Central Bank and the EFCC, we were surely leading for a crash that would have rubbished our financial system, along with your money; your pensions. You cannot afford to be neutral in this war. Make it your war,” she said.

The former Chief Justice of Nigeria, Justice Mohammed Uwais, the Emir of Zazzau, Dr. Shehu Idris and the state’s deputy governor, Mr. Patrick Yakowa, amongst others, attended the workshop.

He should have been properly schooled about his unwaranted decision to create unneccessary panick in the market.
The guy does not understand how economy of a nation works.
Simple.

@Timmi.Walahi,I must have overestimated Ur ability to understand complex concept,maybe i should break it down for U,Non performing Loan is a loan in which the borrower is not making any interest payment or making any principal payment.The point at which a loan becomes NPL depends on the terms of contract between the bank and the the lender,it does't neccessarily mean every NPL is a bad debt.Another layman definition is when a borrower fails to repay on time or in full but which are not considered to be in default;the borrower has merely not performed i.e met the terms of the contract but the bank is still booking interest due. Besides,banks put aside some money to cover potential losses on loans and write off bad debts in thier profit and loss account,although accumulation of NPLs could spell doom for any bank,however,it does't make it a crime cos every bank has NPLs,it's part of the banking business, ppl default on payment for different reasons.Having NPLs is not a matter of collateral,even with collateral borrowers can still default on payment.
Incase U don't know,many of these banks have been making efforts to get these defaulters to service thier debts even before Sanusi decided to get thuggish with the whole affair,infact,in some countries banks that have accumulated too many NPLs are able to sell them to(at a discount) special established asset management companies which attempt to recover at least some of the money owed.Do U think it's easy to recover such monies?That's why i have always maintained that Sanusi lacks the finesse for solving the problem unless he's trying to tell us that Banks are not suppose to lend money to big time business men or fund big ticket projects,i mean,this is one of the traditional functions of any commercial bank.Sanusi just sensationalize everything,he made it look like every NPL must eventually end up as bad debt,as if it was out of the functions of these banks to loan money,did he have to sack these 5 CEOs and make them look like criminals,couldn't he assist these banks to recover these loans and wait for a proper timing to dispose them off,instead of the unneccessary brouhaha that has scared everyone and caused panic,it's like the whole thing has some politics in it.Mr Timmy i will implore U to do Ur own research on some of the highlighted problems that made sanusi go gaga,U will conclude too that it's either there is already a preconcieved plan or sanusi exaggerated and sensationalized issues,don't be too simplistic in the way U put Ur analysis,nobody is denying that there's a problem however, we can't afford to make more stupid mistakes like the one Mr Sanusi has made.As for the EFCC,nigga Puleeez!Who takes them seriously these dayz anyway?Everyone knows the agency has lost it's bite since after the removal of Ribadu,Waziri is a dam Zombie,she does't even know what to do unless the likes of aondoaaka or WTF is the crook's name give her directives to make noise,the dime is way outta her league with that job.Anyway go do Ur own research so I won't ve to sch u,I hate doing it,makes me kinda come across as arrogant,Lol.

I SAID THIS BEFORE WHEN THE WHOLE BOMB WAS FALLING BUT PEOPLE WAS BUZY PRAISING SANUSI. To be a CBN governor u need to know more than banking but be a good Economist which Sanusi the Yaradua's brother is not. An economist looks and analysed effects of his actions on the economy before pulling his strings. Thanx to Sanusi the economy of this nation is in more shambles becos of his mallam behaviour. There are more objective ways of dealing with these banks and their CEOs without creating a stupid panic in the financial sector of this country