paddy_lo:

he didnt just print money,the naira is equivalent to $4bln or so that was injected,u cant just print money without the dollar backup,else it leads to inflation
so basically he injected $4bln dollars into the banks
that is probably outside his authority,like here in the US the treasury deals with budgets and fiscal issues,while bernanke of the fed deals with the banks and monetary policy
i believe that the issue of paying local debts is a budgetary issue,perhaps the national assembly would have liked to be involved also,since it would be in form of supplemental budget,if it wasnt in the 2009 budget to pay back local debt
see my answer above

govt moves very slow,even here in the u.s,am sure they would have to verify contractors and how much is owed and all that
sanusi probably felt he needed to act fast and be decisive,which is a good thing

i dont see or smell any rat,again if there is lack of confidence in a banking system,the Central bank has to act fast
u are in the U.K or so u claim,so u should know that the autrhorities there had to inject capital directly into northern rock,RBS and other institutions
and not concoct,some kind of round about way of paying contractors first. .there is no luxury or time for that
i believe what the CBN is trying to do now is look for private individuals/entities that are willing to capitalize the banks,so they can withdraw the equity they put in
over here in the U.S most of the banks that the govt invested in are raising new capital to pay back the govt
that i believe is what sanusi is talking about,anyway everyone is watching so lets see what happens

i do not see any agenda,ETB was also spared and allowed to re-capitalize
if the bank capital ratios are seriously depleted,then u are talking of serious capital that needs to be raised to meet basel II capital ratio adequacys
for oceanic it may be as high as $1bln,(depending on the writedowns they take)that is no mean feat,about #150bln
again we are all watching,lets wait and see what happens instead of getting all hysterical

Nice response.

Sanusi's reform still remains one that can always do more arms that good just as the writer said.
Looking at the Thisday news paper of Thursday 3rd DEC, it was written there that CBN(sanusi) wrote the MD of intercontinental bank to reduce salary and lay off some staff. Just as Sanusi(Almighty) will has it, 26 senior staff of that bank according to Thisday paper Friday 4th DEC, were asked to resign. insider information revealed that more list is still being compiled.
This is the trend of Sanusi' banking reform. all banks have now choose to be sacking staff either as advised by CBN or for them not to be caught up in the mess.
what of increment in the ever growing unemployment figure in Nigeria.

God shall help us

realmen:

Sanusi's reform still remains one that can always do more arms that good just as the writer said.
Looking at the Thisday news paper of Thursday 3rd DEC, it was written there that CBN(sanusi) wrote the MD of intercontinental bank to reduce salary and lay off some staff. Just as Sanusi(Almighty) will has it, 26 senior staff of that bank according to Thisday paper Friday 4th DEC, were asked to resign. insider information revealed that more list is still being compiled.
This is the trend of Sanusi' banking reform. all banks have now choose to be sacking staff either as advised by CBN or for them not to be caught up in the mess.
what of increment in the ever growing unemployment figure in Nigeria.

God shall help us

if the above is true, then it means that CBN is actively running some Nigerian banks. Well this is banking made in Nigeria. But I predict it will lead to a comatose Banking sector just like our comatose economy and comatose president !
How befitting !

adigun101:

if the above is true, then it means that CBN is actively running some Nigerian banks. Well this is banking made in Nigeria. But I predict it will lead to a comatose Banking sector just like our comatose economy and comatose president !
How befitting !

Of course the statement is true, I saw the article too.
Any unbiased observer will see the criminal incompetency of Sanusi from a mile away. My brother, your prediction will be in line with those of banking and financial experts like Chie Edonien of Eket.

Economy wise, all banks have refused to give out money(loan) for any business or investment of any kind or magnitude or importance.
FG and CBN begged, advised and implored banks to start given loans, but they all refused. Banks refused to continue with existing facilities, and ask customers to pay down prematurely. all these are to conform with Sanusi's reform. or better still to play safe.

oil importers are not availled facilities to import again as before.
foreign banks are asking for cash back up for Letter of Credits from all Nigeria banks now as they trust no bank in Nigeria again. we are believe to be birds of the same feathers.

banks are confused to do real business
as they dint know what may happen next.

all these definitely are affecting economy



i pray God help Nigeria

realmen:

Economy wise, all banks have refused to give out money(loan) for any business or investment of any kind or magnitude or importance.
FG and CBN begged, advised and implored banks to start given loans, but they all refused. Banks refused to continue with existing facilities, and ask customers to pay down prematurely. all these are to conform with Sanusi's reform. or better still to play safe.

oil importers are not availled facilities to import again as before.
foreign banks are asking for cash back up for Letter of Credits from all Nigeria banks now as they trust no bank in Nigeria again. we are believe to be birds of the same feathers.

banks are confused to do real business
as they dint know what may happen next.

all these definitely are affecting economy

i pray God help Nigeria

No, foreign banks don't have a trust problem with Nigerian banks. Afterall they weren't duped. What they are afraid of, is that at a whim, Sanusi might suddenly sack the CEO in whose hands their business lies and take over the bank; meaning they would lose both their money and business continuity.

@realmen
Thank you, now we just have to wait for the Sanusi praise singing crowd to explain what's going on, and quickly too.

Beaf:

No, foreign banks don't have a trust problem with Nigerian banks. Afterall they weren't duped. What they are afraid of, is that at a whim, Sanusi might suddenly sack the CEO in whose hands their business lies and take over the bank; meaning they would lose both their money and business continuity.

That's called loosing confidence in Nigerian banks.
It's so easy to destroy than to build. What OBJ and Soludo built from the ruins of the military from 1999 is destroyed overnight by Sanusi, because "I had to clean house before the whole banking industry collapses"

naijaking1:

That's called loosing confidence in Nigerian banks.
It's so easy to destroy than to build. What OBJ and Soludo built from the ruins of the military from 1999 is destroyed overnight by Sanusi, because "I had to clean house before the whole banking industry collapses"

OBJ and Soludo built?
You are talking as if they played the most crucial part in building the Nigerian financial sector. . .
My friend stop hyperventilating. . .and dont exaggerate matters. . . .

Sanusi is a cheap fraudster!!!
If time isn't taken, Nigeria would be drop dead poor
because of that criminal that's in charge of Central Bank.

mama-gee:

Sanusi is a cheap fraudster!!!
If time isn't taken, Nigeria would be drop dead poor
because of that criminal that's in charge of Central Bank.

lol i love seeing your post they are funny as hell everyone is a liar, crook, criminal and co . . . .

MrCrackles:

OBJ and Soludo built?
You are talking as if they played the most crucial part in building the Nigerian financial sector. . .
My friend stop hyperventilating. . .and dont exaggerate matters. . . .

Yes they did. Why is it easy for people to forget
Nigeria weathered the global economic meltdown thanks to Soludo. I know people like you quote verses from Sanusi to say that covered up, ignored, or painted a rosier picture than they were--still controversial. The truth is out there in black and white, but don't take Sanusi's words for it.

"I just burnt down your house, because I know that in 6 months that house of yours would have collapsed" This is the fallacy Sanusi has used to sell his incompetence to Nigerians, and some how, some smart people believe him

Sanusi is a cheap fraudster!!!
If time isn't taken, Nigeria would be drop dead poor
because of that criminal that's in charge of Central Bank.

pretty strong accusations there

nigerian foreign reserves have stabilized at $42bln and is forecast to rise steadily next yr as oil prices rebound

the stock market has bottomed and if the senate can pass the AMC bill this month,it should spark a rally going into next yr

if anything i will say that sanusi is trying his best to do the right thing for nigeria

lets wait and see though

naijaking1:

Nigeria weathered the global economic meltdown thanks to Soludo.

Were any Naija banks exposed to any of the instruments that caused the worldwide banking collapse? Besides, the banking sector is a minute sector of our economy. A collapse in the Naija banking sector would hardly affect our economic growth figures. The only way the worldwide collapse would have affected us is if it led to collapse of oil prices, or if we had sovereign wealth funds heavily invested in banks abroad. Actually, the reverse was the case. Oil hit an all-time high in the middle of the crisis. We will still produce what ostensibly makes up the bulk of our economy - crude oil.

@ topic,

Sanusi is only doing what Soludo would have eventually had to do if he had stayed as CBN Governor. Soludo had already started with regularisation of accounting practices which was causing panic to the cowboys.

As regards loss of confidence, can someone please pull up the historical figures for the NSE banking index, lets examine when the loss of confidence disinvestment started, and when it peaked.


In reference to Sanusi's tough-regulator approach, we can afford to get it right at this stage of development, than sweep malpractice and fraud under the rug. We dont need to worry about propagating or propping a bubble built on a banking system that lends primarily to government, tycoons and stock market speculators. Our economy is not nearly as dependent on that bubble as say the UK economy is dependent on House prices staying high. I remember 4Play driving the point home when Sanusi injected N400bn into the banks, that the banks should have been allowed to collapse because they are insignificant to the Nigerian economy, which is mostly tied to our crude-oil sales.

@KnowAll
Thank you. I never knew I could be saying this to you, but honesty is honesty.

naijaking1:

Yes they did. Why is it easy for people to forget
Nigeria weathered the global economic meltdown thanks to Soludo. I know people like you quote verses from Sanusi to say that covered up, ignored, or painted a rosier picture than they were--still controversial. The truth is out there in black and white, but don't take Sanusi's words for it.

"I just burnt down your house, because I know that in 6 months that house of yours would have collapsed" This is the fallacy Sanusi has used to sell his incompetence to Nigerians, and some how, some smart people believe him

dude, you seem a lost cause on this matter.
What did Soludo do?
Nigerian banks are not as internationally integrated as Soludo and his praise singers will have us believe.
What is happening in the banking industry is almost unrelated to the global financial issue.
It is a case of a poorly constructed house collapsing.
any discerning person could see it coming.
i gave you a detailed report to read (one that does not flatter Sanusi particularly but does buttress the fact that the rot was inherited).you came back after two minutes and said the over 68 pages of report buttressed your hatred for Sanusi.
It is obvious you did not look at it and have now started thanking Soludo for an unrelated matter.

http://proshareng.com/admin/upload/reports/100_days_after_Report_-_Proshare_251109.pdf

I looked at this proshare summary to the last 100 days earlier and I told you it did not contradict chie Edonien's statement, and you post it again?
Maintaining calm and instilling confidence were commodities we never appreciated in Soludo until rabble-rouser Sanusi came along, now many people(Nigerians, foreigners, shareholders, investors) can look back and wish for the good old days.

Sanusi is not the right man. He talks too much and makes too many hasty moves, he needs to be matured and more composed. Banking and telecommunication seems to be the only moving sectors in Nigeria lately. I mean why bringing ETB to the table of badly managed banks in the first place if he did his homework . I remember the errors he made in the first list of debtors he published, so many silly errors and i guess it is enough to Postulate possibilities of a hidden agenda.

naijaking1:

Yes they did. Why is it easy for people to forget
Nigeria weathered the global economic meltdown thanks to Soludo. I know people like you quote verses from Sanusi to say that covered up, ignored, or painted a rosier picture than they were--still controversial. The truth is out there in black and white, but don't take Sanusi's words for it.

"I just burnt down your house, because I know that in 6 months that house of yours would have collapsed" This is the fallacy Sanusi has used to sell his incompetence to Nigerians, and some how, some smart people believe him

Please explain how Nigeria weathered the world recession storm. The stock exchange dropped from N13trillion to N5trilllion and it still dropping. Most investors have lost almost 75% of their investments due to recklessness of Bank executives. Maybe you need to talk someone like Segun Osoba to understand what I am saying.
What I see here is that Nigerian behaving like our leaders, always thinking in the short time. . Sanusi may have his own shortcomings, but his actions is for overall good of the economy. Banks cannot hold back lending money to genuine business forever, they just have to be meticulous, the era of given cash to whoever asked for it should be done away with. Just last week we were told that those banks in trouble have more that 41% of their worth in bad loans that is stagering N1.4trillion of their total N3.4trillion . Some have been borrowing to pay dividends, some selling property and cook books to get awards both locally and internationally.

Remii:

Please explain how Nigeria weathered the world recession storm. The stock exchange dropped from N13trillion to N5trilllion and it still dropping. Most investors have lost almost 75% of their investments due to recklessness of Bank executives. Maybe you need to talk someone like Segun Osoba to understand what I am saying.
What I see here is that Nigerian behaving like our leaders, always thinking in the short time. . Sanusi may have his own shortcomings, but his actions is for overall good of the economy. Banks cannot hold back lending money to genuine business forever, they just have to be meticulous, the era of given cash to whoever asked for it should be done away with. Just last week we were told that those banks in trouble have more that 41% of their worth in bad loans that is staggering N1.4trillion of their total N3.4trillion . Some have been borrowing to pay dividends, some selling property and cook books to get awards both locally and internationally.

dude, save your breath.
naijaking is oblivious of such truth.
i have stated my greviances of Sanusi in previous posts in this thread but the fact remains that the peace that was reigning in the banking sector before now was the peace of a graveyard.
Soludo went around as the godfather of banking cowboys telling us 'it is well' yet we sensed it was not well.
now someone has come out to prove to us that indeed it was never well and you busy yourself with oxford and harvard degree theories.
you never answered my question on how your oxford trained Bankole is any better than Etteh, the hair dresser?
borrowing to pay dividends? these CEOs deserve electric chair, walahi.

^^^^^ My brother, one cannot but be baffled with some people just attacking Sanusi's actions just for the fun of it. The penson funds have lost almost 50% in the past two years, meaning the salary portion deducted lost 50% value instaed of gain or maintain value at worst, that is, it was better for the staff not to have contributed any part of their salaries in the last two years. People who must retire are leaving with almost nothing and those who plan early retirement are shelving the idea, they continue to work, under grudges against their life plan. Yet they here stories of CEOs given their cronies billions of Naira unsecured loans. Non of the CEOs have come out to deny any of the frivolous facilities said to have been granted other than insinuating agenda. Why did they do what would allow anyone carry out his so called agenda. Why would Akingbola run away if he has nothing to hide.

naijaking1:

I looked at this proshare summary to the last 100 days earlier and I told you it did not contradict chie Edonien's statement, and you post it again?
Maintaining calm and instilling confidence were commodities we never appreciated in Soludo until rabble-rouser Sanusi came along, now many people(Nigerians, foreigners, shareholders, investors) can look back and wish for the good old days.

Again I would like you to explain what you meant by "good old days". I could remember that the economic crisis started around  March 2008 with the decline in the NSE and it has not recovered since then. Instaed of looking for the real cause of the decline they stated treating only the symptoms, they tried 1% rule, no loss rule and what have you to know avail. Part of what was mentined as caused of the crisis was Soludo's stopping of margin loans and asking banks to have common end of year - December. That has been the begining of the present crisis.

Remii:

^^^^^ My brother, one cannot but be baffled with some people just attacking Sanusi's actions just for the fun of it. The penson funds have lost almost 50% in the past two years, meaning the salary portion deducted lost 50% value instaed of gain or maintain value at worst, that is, it was better for the staff not to have contributed any part of their salaries in the last two years. People who must retire are leaving with almost nothing and those who plan early retirement are shelving the idea, they continue to work, under grudges against their life plan. Yet they here stories of CEOs given their cronies billions of Naira unsecured loans. Non of the CEOs have come out to deny any of the frivolous facilities said to have been granted other than insinuating agenda. Why did they do what would allow anyone carry out his so called agenda. Why would Akingbola run away if he has nothing to hide.

But some of these CEO's have gone to court to challenge their unjust removal.
In the court they can say their parts of the story, deffend themselves if they have genuine case or they are not thieves as Sanusi/EFCC have termed them to be.
But while is Sanusi telling court not to listen to Akingbola and Ibru. when he knows for sure he has genuine allegations against these so called thieves. Federalcourt ruled that he want to handle the case both the substantive case and the objection of the CBN because of time. still CBN appeal that court should not entertain Akingbola ' case.
If these guys are bad and have committed so so much, CBN should allow court to judge and CBN/Sanusi?EFCC should go to the court with their evidence andlet the judgement be done on time.

JUDGEMENT DELAY THEY SAY, IS JUDGEMENT DENY.

we should all be guided

Remii:

Please explain how Nigeria weathered the world recession storm

Thank you. . . .I was about to ask him when i read the jargons he typed in response to my post!

Naijaking
Over to you. . .
Please also explain how OBJ and Soludo built Nigeria's "new" financial industry

yeswecan:

Sanusi is not the right man. He talks too much and makes too many hasty moves, he needs to be matured and more composed.

How do you know he is not the right man?
What more maturity and composure does a man of Sanusi's calibre need?
Can you please explain your points. . . . . .
I hate it when people just come up here and start blabbing without concrete evidences. . . .

dude, you seem a lost cause on this matter.
What did Soludo do?
Nigerian banks are not as internationally integrated as Soludo and his praise singers will have us believe.
What is happening in the banking industry is almost unrelated to the global financial issue.
It is a case of a poorly constructed house collapsing.
any discerning person could see it coming.
i gave you a detailed report to read (one that does not flatter Sanusi particularly but does buttress the fact that the rot was inherited).you came back after two minutes and said the over 68 pages of report buttressed your hatred for Sanusi.
It is obvious you did not look at it and have now started thanking Soludo for an unrelated matter.

[b]i take exception to the above statement,soludos bank consolidation was a brilliant idea whose time had come
it was executed brilliantly,and helped our GDP and financial sector as a whole to expand rapidly
i guess u are south african?,well u should know that no modern economy functions without a relatively modern financial services industry
thats what soludo created and ppl,should give him credit for that
before him u had about 104 tiny nigerian banks or so,engaging in only rent seeking activities like roundtripping and the like
they were too small to leverage themselves up to finance real sector developments
its so easy to bash after the fact,but i tell u that if not for consolidation,a lot more banks would have failed
esp as oil went from $147 to $35 in about 6months,because most of those tiny banks were also into lending to oil importers
lord knows what would have happened
again Nigeria is growing at 5% this yr,even with all the problems
i think u should give soludo some credit for that
u got GTB raising dollar denominated bonds,nigerian banks GDR(global depositary receipts) trading in europe
something that had never happened before,it gives our banks the exposure and our economy the leverage[/b]

Please explain how Nigeria weathered the world recession storm. The stock exchange dropped from N13trillion to N5trilllion and it still dropping. Most investors have lost almost 75% of their investments due to recklessness of Bank executives. Maybe you need to talk someone like Segun Osoba to understand what I am saying.
What I see here is that Nigerian behaving like our leaders, always thinking in the short time. . Sanusi may have his own shortcomings, but his actions is for overall good of the economy. Banks cannot hold back lending money to genuine business forever, they just have to be meticulous, the era of given cash to whoever asked for it should be done away with. Just last week we were told that those banks in trouble have more that 41% of their worth in bad loans that is stagering N1.4trillion of their total N3.4trillion . Some have been borrowing to pay dividends, some selling property and cook books to get awards both locally and internationally.

i will explain to u. . .Nigerian growth is 5% this yr,that means it did not contract it kept growing
while almost every major economy in the west and asia suffered contraction
south african growth is negative 2%(-2%),for 2009,thats how we weathered the recession(because we didnt go into one)
the stock market fell,but most markets fell last yr,ours just came late,for example the S/P 500 fell 40% in 2008
a lot of our market fall was due to foreign fund managers pulling out
i dont disagree with the rest of your statement though,sanusis action is good for our economy long term
i just think its a false premise btw soludo and sanusi,as i see them both as 2 sides of the same coin

Soludo went around as the godfather of banking cowboys telling us 'it is well' yet we sensed it was not well.

what soludo was doing is what central bankers call forbearance,if u dont know what it means,read up on it
in the early 1990s,all the banks in america were also all declared inslovent,due to the savings and loan crises
the central bankers had to give forbearance and the banks recovered in no time
it just means giving u time to earn your way out of your capital inadequacies,
while at the same time keeping panic to a minimum
banking is based solely on confidence,as no bank on earth anywhere has enough money to pay everybody
if they all show up at the door,at the same time
so i am baffled as to why u berate soludo for talking up the banking sector at the time

My brother, one cannot but be baffled with some people just attacking Sanusi's actions just for the fun of it. The penson funds have lost almost 50% in the past two years, meaning the salary portion deducted lost 50% value instaed of gain or maintain value at worst, that is, it was better for the staff not to have contributed any part of their salaries in the last two years. People who must retire are leaving with almost nothing and those who plan early retirement are shelving the idea, they continue to work, under grudges against their life plan.

pension funds are supposed to be long term investments,u cannot use a one or two yr period as a gauge
most 401ks plans here lost 30-50% of value too. . .
pension plans are not to be accessed till one is 60yrs old or retired
so i expect those plans to rebound in the near future,and the majority of investors in them not to lose any money

paddy_lo:

i just think its a false premise btw soludo and sanusi,as i see them both as 2 sides of the same coin

Yep, my thinking exactly. . . .

Remii:

Please explain how Nigeria weathered the world recession storm. The stock exchange dropped from N13trillion to N5trilllion and it still dropping. Most investors have lost almost 75% of their investments due to recklessness of Bank executives. Maybe you need to talk someone like Segun Osoba to understand what I am saying.
What I see here is that Nigerian behaving like our leaders, always thinking in the short time. . Sanusi may have his own shortcomings, but his actions is for overall good of the economy. Banks cannot hold back lending money to genuine business forever, they just have to be meticulous, the era of given cash to whoever asked for it should be done away with. Just last week we were told that those banks in trouble have more that 41% of their worth in bad loans that is stagering N1.4trillion of their total N3.4trillion . Some have been borrowing to pay dividends, some selling property and cook books to get awards both locally and internationally.

Despite being a 3rd World economy, our financial system is nontheless connected with the greater global system, whether under Soludo or Sanusi. If you don't appreciate the fact our system almost survived the global melt down intact before Sanusi came, then you too have bought into the false notion that Sanusi came just on time to save the World or financial system. Sanusi's predictions of doomday in the banking sector remains questionable at best, and even criminally motivated at worse. Meanwhile, some of you guys agree that it's ok "to burn down our house today, because it's going to collapse in 6 months anyway"
If saying everything is ok was the best way to maintain and keep confidence in our financial system, while working behind the scene to correct any anomaly, then it made good sense that Soludo did it. Apparently, maintaining confidence was not one of things Sanusi learnt in his quick rise to the top of the banking echellon.

mbulela:

dude, save your breath.
naijaking is oblivious of such truth.
i have stated my greviances of Sanusi in previous posts in this thread but the fact remains that the peace that was reigning in the banking sector before now was the peace of a graveyard.
Soludo went around as the godfather of banking cowboys telling us 'it is well' yet we sensed it was not well.
now someone has come out to prove to us that indeed it was never well and you busy yourself with oxford and harvard degree theories.
you never answered my question on how your oxford trained Bankole is any better than Etteh, the hair dresser?
borrowing to pay dividends? these CEOs deserve electric chair, walahi.

I'm not oblivious of the truth, maybe you should look into the mirrow to see who is totally biased and impervious to reason. If you remove tribal, religious, and political sentiments from this issue, you will see why people like me will never give Sanusi a pass mark based on his current record. The economic indices of his success is not there: the stock market has been crippled---thanks to the man.

MrCrackles:

How do you know he is not the right man?
What more maturity and composure does a man of Sanusi's calibre need?
Can you please explain your points. . . . . .
I hate it when people just come up here and start blabbing without concrete evidences. . . .

Once again, you just don't see how retarded you sound. Disagreeing with you means blabbing without evidence Well, where is your own evidence, apart from Sanusi's false predictions of doomsday in Nigerian banking industry, and how he has come, just on time to save the day.

@remii
are u sure d PFA's lost 50% cos ders a law limiting d %age dey can invest in stocks

@Naijaking1, I agree with your comments on pension fund but have reservation with underground management of crisis by Soludo. If there is a problem you cannot keep secret for ever and could not be fixed quickly also, the earlier people know the truth the better. It is surprising that Nigerian government officials behaves as if they must give positive news all the time. They go about denying anything negative even when indicators are all over the place. It was international commentators, Meryl Lynch, I think, that first wrote that only 6 banks or so are sound in Nigeria, that was far back in Oct 2008. Soludo went to the press discrediting them and called them names that they are causing unnecessary panic. We all know to the contrary now. I am not saying every method of Sanusi is perfect but the drift must be stopped and there should be signal for future CEOs to realise that as we have some Soludos so also we have some Sanusis then be professional always.