debosky:

That might be david's prejudice, but I can't say much on that. The issue here is that if the person to replace Soludo was well qualified, it would leave less room for speculations that Sanusi has been appointed to do the bidding of certain elements who have been 'shortchanged' in the previous privatisation exercise, or to 'cut down' certain southern banks while providing favourable terms to alleged godfathers.

4play's argument holds a lot of merit - if we have skilled, qualified people who have made differences in an office, why not continue along those lines? I'm not saying Soludo was flawless,  but he did do many things that were previously regarded as impossible in the banking industry.

All in all, I am yet to be convinced by Sanusi - he's made some good noises BUT the stories beginning to emerge are not looking too good. In addition, his bull in a China shop approach has not quite yielded the desired effects.

He might be qualified, but that will be determined over a longer period of time than we've had so far and will be based on his actions.

i agree , though as a person based in nigeria, i think it is only an individual from within the banking industry that can set it in order.

i was poking fun at  friend working in pricewaterhousecoopers the other day - y'all audited oceanic and intercontinental, and gave them consecutive clean bills of health.

we've had variants of this conversation before, so you know that a lot of us professionals  based in nigeria aren't in awe of our expat colleagues.

performance in the us/uk is no guarantee of performance in nigeria. it is a different environmnt, with different variables. once we had a prince 2 seminar by some uk dude - we had a laugh over the fact that prince 2 means projects in controlled environments - well guess what nigeria is the farthest thing from a controlled environment .

a fantastic project manager from the uk will fail if he is unable to change his thinking. thats just an analogy about the fallacy of believing that the simple solution to nigeria's problems is bringing home skilled workers. it goes deeper than that.

i was completely against the use of EFCC to recover debts. but it seems to have worked. i doubt if a foreign trained cbn governor would have gone along with that. but that is sadly what works in nigeria. ditto for the public humiliations.

as to agendas - nigerians will always see agendas, its just sad. the other day, an ibo chick in my office was telling me there was a a conspiracy against ibos in the company - according to her there were no ibo hods. i asked what about this guy , that guy, and she mumbled something about exceptions, if i remember correctly. my point is just that Nigerians will always look for a tribal/religious  angle - have i not been accused of defending sanusi solely because he is a muslim .

for the past year, i had been thinking about moving my money somewhere, anywhere, because i had absolutely no idea which banks are safe .

yep sanusi, like ribadu and el rufai leaves something to be desired in lets call it finesse, but i like to believe that we have a much clearer picture of where our banks are today.

for a while at least, there will be some form of checks and balances against the irresponsible practices that the CEOs have made the norm - and as a how have my been to friends smugly put it - as someone working within corporate nigeria, i was not in the least suprised at all the shady deals eg the ibru nanny .

the funny thing about the northern agenda noise - if there really is an agenda, and vanguard is right - then all those CEOs deserve their fates. what kind of fools have a 6 months  advance warning and still fail to put their houses in order? any worker knows -  if they are out to get you , it is time to dot every i and cross every t. be the first in the office and the last out.

Sanusi is not the most qualified guy on paper. . . . I think thats obvious. . . . I argued against his appointment against Jarus. . . . however, Nigerians would find it to their detriment to entrench their opposition because of that. . . . just like Nigerians will find it to their detriment to believe some "pie in the sky" story about some kind of Northern Agenda.


Its funny how one story in a newspaper could erode all confidence in a market. . . . honestly, with the kind of false & negative reporting going on right now, Sanusi will do well to turn this ship around. . . . if it was in the UK or US, Vanguard newspapers and their benefactors would be arrested for spreading insidious rumours to destabilise banking institutions. . . . just like happens in Yankee. . . . . unfortunately, we pay a heavy price for our democracy. . . . the politicisation/ethnicisation of our financial markets is something we cannot afford.

debosky:

All in all, I am yet to be convinced by Sanusi - he's made some good noises BUT the stories beginning to emerge are not looking too good. In addition, his bull in a China shop approach has not quite yielded the desired effects.

Some may recall how Soludo sacked Omoyeni as MD of WEMA bank (and had him arrested) last year for granting himself loans without recourse to due process. . . . Omoyeni even took out adverts in the dailies accusing Soludo of Igbo agenda. . . . . Sanusi came in and did the exact same thing, now it is Northern Agenda. . . . I blame Omoyeni for not having a strong PR team behind him like Ibru et al who virtually have Vanguard Newspapers etc in their pocket. . . . maybe if Omoyeni was more vocal about his sacking last year, he would be the saint, and Soludo would be the aggressor. . . .and perhaps Debosky would have even accused Soludo of acting like a "bull in a china shop" 


It is funny that the same Layi Alabi who Soludo chose to replace Omoyeni at WEMA bank was also chosen by Sanusi to replace Akingbola at Intercontinental bank. . . yet some Nigerians (thanks to Vanguard newspapers) beleive Alabi's appointment to Intercontinental is part of Saraki's anti-consolidation agenda  because he once worked for Saraki. . . . was Soludo also working to Saraki's agenda when he appointed Alabi as interim MD of WEMA bank? . . . . . una dey here dey disinvest cos of newspaper rumour, whilst South Africans and others are looking to enter the market and take the whole shebang at a deflated price. . . rumour has it that M&A experts in Naija are being kept busy right now by the South Africans. . . . I hope this wont be another MTN. . . .[size=5pt]thankfully, Mike Adenuga is here to provide some competition for them once again with his recent $150m investment.[/size]


IMHO, the debate about Sanusi boils down to a simple debate. . . . are you pro-corruption or anti-corruption?. . . . when Soludo sacked Omoyeni, some people were happy that Soludo was taking corrective action. . . . others argued that Soludo's action could undermine confidence. . . . why?. . . . because they know Omoyeni was just the tip of the iceberg and didnt wanna see the false confidence evaporate from the market when the true degree of fraud is revealed. . . . but if the statement from Rand Merchant Bank is anything to go by, after the flight of foreign capital in 2008, when shady practices became apparent to foreign investors, it was always gonna take a cleaning out of the augean stables for them to come back . . . . people have to know the true value of what they're buying so Naija have no choice but to implement strict regulation. . . and Sanusi is the man for the job. . . . already, CBN has suspended the use of Commercial Papers and Bankers’ Acceptances in off-balance sheet instruments, cos they were being used to hide toxic debts/assets.



Im of the belief that Sanusis push to ensure proper capital-adequacy is to the same end as Soludos consolidation exercise which was primarily aimed at ensuring capital adequacy and liquidity. Nigerians should take it at face-value. Im waiting to see the likes of Naijaking, Daviddylan and Beaf etc investing in Naija market before I chook head.  Why should I be the only one buying when everyone else is selling on the false premise that the market is rigged in favour of a Northern agenda? 

Preferred to sit back and watch this debate. Good contributions from all parties, and as usual an insightful comment from Debosky.
Being à vétéran of many debates on same subject in thé past, and my opinions widely known, needless to go over same discussion again. Wé can not all see things from thé same lens. We are bound to disagree. Even, evil as everybody agrees Abacha was, wé still have people that will argue voraciously in his defence. Debates give opportunity to review one's stand and question thé whys of one's opinion, and perhaps review it. That's thé beauty of it. Peace.

Omoyeni even took out newspapers in the dailies accusing Soludo of Igbo agenda

everythin in naija is always tribal as far as the aggrieved party is concerned.

in the close whee i live, a woman and her husband started a 'fellowship' in short order, it morphed into a church complete with testimonies casting out of demons dancing etal all delivered via loudspeaker from 3 to 6 pm every sunday. when challenged by her next door neighbour, whose weekends the pastor she was making rally miserable - te pastor lashed out - it is because i am ibo u are disturbing me - if it had been me - it would have been became i am a christian you are disturbing me. nigerians. sad.

Thank you very very much Ibime
very insightful.
The problem IMO is a lot of Nigerians are very short sighted, don't know how to read between the lines and generally comfortable with following the Hear Say bandwagon.

Are you an analyst by any chance?

for people like naijaking that is just interested in short term gains this might be interesting to you. http:///yc9jphf

davidylan:

Look at the pro-Sanusi folks here . . . speaks volumes as to why they "support" Sanusi no?  Talk of hypocrisy.
Religion is no issue as far as i'm concerned but i would rather someone from the south BEFORE anyone from the North. I've taught for a few months in the north . . . i know how hopeless the educational system is there.
Goodluck having a sharia graduate as your primary care physician . . .

Err Sudan-trained in what exactly? I see Nigerians here at Harvard, i know 2 cousins to a friend who are Wharton BS graduates . . . and we have a sharia graduate as head of our financial system? No wonder no one takes us seriously.

how typically arrogant. i have lived in the uk for years. i have a first class in computer science and a masters in same from kings college. my boss did not go to university but answer to him. why is that? because experience is a better teacher than any classroom. and looking at sanusi's cv, he has tons of that.

Ibime:



Some may recall how Soludo sacked Omoyeni as MD of WEMA bank (and had him arrested) last year for granting himself loans without recourse to due process. . . . Omoyeni even took out adverts in the dailies accusing Soludo of Igbo agenda. . . . . Sanusi came in and did the exact same thing, now it is Northern Agenda. . . . I blame Omoyeni for not having a strong PR team behind him like Ibru et al who virtually have Vanguard Newspapers etc in their pocket. . . . maybe if Omoyeni was more vocal about his sacking last year, he would be the saint, and Soludo would be the aggressor. . . .and perhaps Debosky would have even accused Soludo of acting like a "bull in a china shop" 


It is funny that the same Layi Alabi who Soludo chose to replace Omoyeni at WEMA bank was also chosen by Sanusi to replace Akingbola at Intercontinental bank. . . yet some Nigerians (thanks to Vanguard newspapers) beleive Alabi's appointment to Intercontinental is part of Saraki's anti-consolidation agenda  because he once worked for Saraki. . . . was Soludo also working to Saraki's agenda when he appointed Alabi as interim MD of WEMA bank? . . . . . una dey here dey disinvest cos of newspaper rumour, whilst South Africans and others are looking to enter the market and take the whole shebang at a deflated price. . . rumour has it that M&A experts in Naija are being kept busy right now by the South Africans. . . . I hope this wont be another MTN. . . .[size=5pt]thankfully, Mike Adenuga is here to provide some competition for them once again with his recent $150m investment.[/size]


IMHO, the debate about Sanusi boils down to a simple debate. . . . are you pro-corruption or anti-corruption?. . . . when Soludo sacked Omoyeni, some people were happy that Soludo was taking corrective action. . . . others argued that Soludo's action could undermine confidence. . . . why?. . . . because they know Omoyeni was just the tip of the iceberg and didnt wanna see the false confidence evaporate from the market when the true degree of fraud is revealed. . . . but if the statement from Rand Merchant Bank is anything to go by, after the flight of foreign capital in 2008, when shady practices became apparent to foreign investors, it was always gonna take a cleaning out of the augean stables for them to come back . . . . people have to know the true value of what they're buying so Naija have no choice but to implement strict regulation. . . and Sanusi is the man for the job. . . . already, CBN has suspended the use of Commercial Papers and Bankers’ Acceptances in off-balance sheet instruments, cos they were being used to hide toxic debts/assets.



Im of the belief that Sanusis push to ensure proper capital-adequacy is to the same end as Soludos consolidation exercise which was primarily aimed at ensuring capital adequacy and liquidity. Nigerians should take it at face-value. Im waiting to see the likes of Naijaking, Daviddylan and Beaf etc investing in Naija market before I chook head.  Why should I be the only one buying when everyone else is selling on the false premise that the market is rigged in favour of a Northern agenda? 

you hit the nail on the head!

@er'one
if soludo did so well in CBN with his academic pedigree and all that why is he fighting to become a mere state governor? methinks its not b'cos he wants to use the knowledge he gained at all those high-class institutions to help anambra. . .

This Pro & Anti Sanusi debate has gone on for a while now, with both sides of the divide not willing to shift sides.

I think it is time we ask ourselves the real questions that matter.

Has Sanusi's actions been good for the economy or not(both long & short term)?

If they have been catastrophic, is the any reason why he should continue on the job??

Everybody that exists in the Nigerian financial realm knows already that Sanusi's actions have caused immense damage to both the financial sector and the Nigerian economy at large.
The negative numbers are just beginning to come out from every sector of the economy. Funny thing is the data shows accelerated decline beginning from August when Sanusi began his destructive moves.

First Bank, which Sanusi headed before his CBN job, is experiencing extreme tightness like never before. Its problems were so bad last week that it was having problems meeting up cash calls from depositors.
Next week, all the banks will be releasing their audit results for the preceding operational year. There we will see how much destruction and damage Sanusi has caused the financial sector.

If you notice, Sanusi has all of a sudden turned press shy. The man that loved the press so much has gone into hiding.
Reason been that the impact of his actions are beginning to reverberate across the landscape and he has no more words to defend his actions in the face of impending realities.

Many of the folks here supporting Sanusi, do not reside in Nigeria and don't have the slightest idea the impact of Sanusi's actions.
Also, many pro Sanusi supporters are salary earners who mostly do not understand the workings of business and the importance of an enabling environment for entrepreneurship to thrive. Sanusi has almost literally killed the entrepreneural spirit in Nigeria's financial sector.

This article from just one sector of the economy, best explains the impact:

N

ew vehicle imports drop by 38%

By Hamed Shobiye with Agency Report, Published: Thursday, 10 Dec 2009
click to expand image

Offloading containers at the A

Only 42,493 units of new cars entered Nigeria between January and November 2009 compared to 75, 000 units imported during the same period in 2008.

The figure (42,493), which represents 38 per cent decline, was attributed to the global economic meltdown that has eroded consumers’ purchasing power and the availability of credit facilities.

Reuters quoted a key player in the Nigerian automobile industry, Mr. Willie Anumudu, as saying that the frequency of customer enquiries and purchases were on the downward trend.

Anumudu, one of the dealers in Nigeria for Toyota Motor Corporation, which controls 40 per cent of the market in the country, said, “We have never seen it so bad.

“In the 19 years that I have been in this business, the last quarter of the year is usually the busiest. But right now, customer enquiries and sales have been the lowest in history.”

Anumudu stated that Toyota had imported vehicles worth N240bn in the last 15 months.

“Car dealers in Nigeria expected new car imports to slump this year as Nigerian banks, hit by loan losses, pulled the plug on asset financing. They said efforts to attract consumers with price discounts were yet to pay off,” he added.

Industry sources put the total number of new car sales last year at about 75,000 units. Credit sales accounted for around 22 per cent of that total, but this has since dropped to virtually zero.

Nigerian banks extended credits aggressively to a growing middle class for much of last year, offering salary-backed loans for everything from refrigerators to cars and share purchases.

But as the global economic downturn took its toll, bank loans, particularly to stock market speculators and fuel importers, turned bad, causing credit to the wider economy to dry up, including loans to buy vehicles.

The Central Bank of Nigeria has, since August 14, injected about N620bn to bail out nine banks judged to be facing severe liquidity crises.

Interesting thing is that despite the fact that the global economic crises started november last year, August to November of this year(Sanusi's period) is responsible for most of the decline.

Everybody that exists in the Nigerian financial realm knows already that Sanusi's actions have caused immense damage to both the financial sector and the Nigerian economy at large.
The negative numbers are just beginning to come out from every sector of the economy. Funny thing is the data shows accelerated decline beginning from August when Sanusi began his destructive moves.

First Bank, which Sanusi headed before his CBN job, is experiencing extreme tightness like never before. Its problems were so bad last week that it was having problems meeting up cash calls from depositors.
Next week, all the banks will be releasing their audit results for the preceding operational year. There we will see how much destruction and damage Sanusi has caused the financial sector.

If you notice, Sanusi has all of a sudden turned press shy. The man that loved the press so much has gone into hiding.
Reason been that the impact of his actions are beginning to reverberate across the landscape and he has no more words to defend his actions in the face of impending realities.

Many of the folks here supporting Sanusi, do not reside in Nigeria and don't have the slightest idea the impact of Sanusi's actions.
Also, many pro Sanusi supporters are salary earners who mostly do not understand the workings of business and the importance of an enabling environment for entrepreneurship to thrive.  Sanusi has almost literally killed the entrepreneural spirit in Nigeria's financial sector.

[b]
i read your article. . .i think what the govt should now do is formulate policys that will ease lending by banks. . .

if i was to compare sanusi to the U.S bernanke,i would say that sanusi is at the stage now when bernanke injected t.a.r.p funds into the system here

the market still went into a slow motion crash,and credit froze to the real economy too over here(even after T.A.R.P)

what bernanke and geithner (sanusi and finance ministry),did next was to find more tools to use by the govt to ease the crunch

like suspending mark to market for a while,guarranteed all bonds and help banks raise new cheap capital from FDIC,and so on

if u read my earlier posts u will see that i clearly and emphatically support soludos actions,which enabled our banks to engage in more sophisticated form of banking
and credit to the ppl

sanusis time will pass too,and hopefully the banks would have learnt from this experience about how to survive a business cycle in a modern economy

and of course i say no to class warfare,or ignorance about  the role of banking In a nations economy

i would daresay that sanusi himself has sounded ignorant a couple of times about the role of banks
(with a recent quote credited to him saying the nations economy can do without banks  )

i sincerely hope he will now speak less and move behind the seen to manage things more effectively

the time for shock and awe is over. . .[/b]

but the fact remains that all our leaders in nigeria are not competent to perform their task except for very few of them like BABATUNDE RAJI FASHOLA,

I  have refrained from comments on Sanusi’s style as it is always difficult for some not to see it as drumming up support for the sacked(corrupt) CEOs.

My concern however is the logical conclusions the Sanusi’s exercise tend to be making. We all know that banking like any other business can run into troubled waters due to a gamut of factors- Corruption inclusive. Sanusi ran an audit on 24 banks where 8 have been judged to be standing dangerously, the CEOs of these ailing banks are also facing corruption charges which sanusi has been able to use to sway public sympathy in his favour. The general thinking now is,since the CEOs were corrupt the banks were actually in bad shape. From this logic Sanusi is saying that:


1 The main reason why the banks are down is due to executive corruption
2. Of the remaining 16 “healthy” banks none of the Executives have been involved in dealings that can be adjudged “corrupt” . _{how laughable}
3 A bank has to be at the verge of collapse for improper insider dealings to be reported to prosecuting government agencies.

My other area of challenge is with the maturity and consistency of His decisions since AUG 14TH. Why conduct an audit and take over ETB on the strength of the audit findings only to rescind such decisions weeks after with the lame excuse that a principal actor whose influence on the bank you are  trying to checkmate has promised to inject more funds.

My take is simply that SLS takes decisions first and later start looking desperately for any evidence to support the decisions.
Even decisions taken in beer parlours are more matured and consistent.

I keep hearing people say;

" Sanusi is only a good book maker, he's not an economist " another person said " Sanusi is a good risk manager, but not an economist" ; " Sanusi is a good micro economist, he's not a good macro economist" bla bla. They all agree there was problem in the banking sector but non of them has suggested a solution.

Nigerians sometimes don't look at issues objectively. The man SLS just has a first degree in Economics and a masters degree in islamic studies and the likes. Check his profile and you will not be able to place your hand on a single masters degree in Economics! It is not enough for someone to have experience in credit risk management alone and then make him the CBN governor. Banking and running the economy is not just about credit risk. it is more than that. If you even pay close attention to how the cr4edit risk departments of Nigerian banks are being run, you will realise that they just do some set of routines adn nothing more. To manage the economy of a country, you need ingenuity. See the academic profile of Ben Shalom Bernanke of the US Fed Res Bank or even Timothy Geithner of the US Treasury and you will realise these men have what it takes. Ben's highest qualification is a PhD in Economics but SLS's highest is a basic first degree from ABU in Economics. Ia m sure you won't compare a Havard graduate with an Ahmadu Bello University graduate. SLS is just not qualified to run our economy. Little wonder he runs his mouth with no understanding. He doesn't know banking, Yaradua just put in someone from the north! Simple! Anyway, I cannot blame Yaradua since he is also of the same feather.

Let us all go and check out the Chancellor of the Exchequer in the UK and see what his qualifications are as well as his experience. These people are top notch braniacs. Those that govern our country are just plain mediocres. Only an unpriviledged few have the stuff we need to move this nation forward. America is where it is today because they had and will always have sound men leading every aspect of their economic and social life.

As usual, Nigerians prefer to argue about the men, and not the issues. 

why waste your keyboard on Sanusi when the forum on which you are posting your epistle acing a clear and present danger?
Is Sanusi not better than the founder of NL?
with way this Seun chap is going,i doubt Nairaland will be worthwhile in the coming days.
The young man comes up with his Google induced censorship, people as ke genuine question.
instead of answering the question and interacting with people, he locks the thread, throws the keys away and walks away.
For a long while people have been complaining about the quality of threads that get posted on the front page,asking for the criteria for making the front page.even if it was a magic formula that he is unwilling to provide for the sake of competition, courtesy demands that he should engage his users a bit.
Yet he treats users like kids and dependents.
Yet people spend hours arguing and disparaging Nigerian rulers.
This man called Seun needs to get it into his head that NL's relevance is a direct result of the interest of the users.
At present he is doing a good job of alienating us.

who says?

@Sam7,
Pls get your facts well when you criticize. SLS has an Msc Economics degree from ABU 1983.

Sam7:

Nigerians sometimes don't look at issues objectively. The man SLS just has a first degree in Economics and a masters degree in islamic studies and the likes. Check his profile and you will not be able to place your hand on a single masters degree in Economics! It is not enough for someone to have experience in credit risk management alone and then make him the CBN governor. Banking and running the economy is not just about credit risk. it is more than that. If you even pay close attention to how the cr4edit risk departments of Nigerian banks are being run, you will realise that they just do some set of routines adn nothing more. To manage the economy of a country, you need ingenuity. See the academic profile of Ben Shalom Bernanke of the US Fed Res Bank or even Timothy Geithner of the US Treasury and you will realise these men have what it takes. Ben's highest qualification is a PhD in Economics but SLS's highest is a basic first degree from ABU in Economics. Ia m sure you won't compare a Havard graduate with an Ahmadu Bello University graduate. SLS is just not qualified to run our economy. Little wonder he runs his mouth with no understanding. He doesn't know banking, Yaradua just put in someone from the north! Simple! Anyway, I cannot blame Yaradua since he is also of the same feather.

Let us all go and check out the Chancellor of the Exchequer in the UK and see what his qualifications are as well as his experience. These people are top notch braniacs. Those that govern our country are just plain mediocres. Only an unpriviledged few have the stuff we need to move this nation forward. America is where it is today because they had and will always have sound men leading every aspect of their economic and social life.

The beauty of life is that everything is easy to check out so that liars like you can always be called out. The Chancellor of the Exchequer in Britain is Alastair Darling, and he has a degree in Law, not Economics.

prettyG:

The beauty of life is that everything is easy to check out so that liars like you can always be called out. The Chancellor of the Exchequer in Britain is Alastair Darling, and he has a degree in Law, not Economics.

Alastair is a politician and cannot be compared with Sanusi.
Compare sanusi to Mervyn King (Gorvenor of the central bank)

biina:

As usual, Nigerians prefer to argue about the men, and not the issues. 

Very very true,

My question is after sanusi had discovered malpractices in the banks, what should have been the best thing for him to do To keep quiet,

Ladies and gentlemen.
Sanusi is our CBN governor and I think we have far gone past the stage of questioning his competence.
Right now we should be looking at the issues and not the individual.
We should all move on and learn to live with Sanusi banking sector whether we like it or not.
Unfortunately those of us that enjoyed the rejuvenation, modernisation and the boom in Nigerian banking under Soludo should just learn to live with Sanusi own idea.
Soludo banking apparently came with a cost but in the long run lets see which one we prefer.
Banks that grew at a very fast paling SA as sub-saharan African banking hub. All that is history.
I have moved on by taking all my money out of Nigerian banks, sold all my banking shares and have advised my clients to buy banking shares only as speculative investors.

I remember as a kid I saw Nigerians jubilating on the streets after a military coup only to witness the same Nigerians dying for democracy.
It is only a matter of time we will learn.
Things are even going downhill faster than I predicted or anticipated.

Latest bank reforms
Editorial, National NewsDec 10, 2009


CENTRAL Bank of Nigeria Governor, Sanusi Lamido   Sanusi has lost the gusto with which he spoke about his banking reforms.
When he threw out the managing directors of five banks last August, he accused them of infractions that threatened the health of the entire banking sector.
Chief among these allegations were that they gave bad loans to the tune of N1.3 trillion. If the issue was not addressed, the five banks, he said, could take down other banks and put the economy on further spin. Not many believed his agenda or the motive.
Another three bank managing directors have lost their jobs to Sanusi’s reforms. Job losses have become the norm in the banks. The banks seem to be competing with each other over which would sack more staff.
The cost to the banks of sacking staff, some of whom have been trained at great costs, is one of the panic measures described as cost cutting measures. It is obvious that the businesses of banks have suffered from a loss of public confidence in them.
Banks are not making enough money to keep the staff. Services in most banking halls are already reflecting the staff cuts and uncertainties over the health of the industry.
With eight banks on daily, direct supervision of the CBN, credits have been frozen and banks cannot make the money they used to get from lending. Businesses are not borrowing and banks appear uncertain about the CBN’s criteria for lending. Sanusi said last August that he was the one to determine whether a loan was performing or not.
The CBN is also encountering articulated opposition from bank shareholders, who think that they have a right to their investments. Some of the matters are in court, in addition to the Economic and Financial Crimes Commission (EFCC), charging the managing directors of the affected banks to court.
News filtering out of the banks would worry anyone. While the CBN claimed it took over the banks to improve their governance, recover loans and prepare them for sale, some of its appointed managing directors are already writing off the loans of some debtors, as concessions.
It is to say the least a scandal that instead of recovering loans from debtors, who have enough assets that could be used to liquidate the loans, any bank could write off the loans, while wasting time in chasing small debtors.
The compensations and luxuries the CBN appointed managing directors have laid out for themselves is another source of scandal. If costs are to be cut, should it exclude the emoluments of the managing directors? These matters have dented whatever the banking reforms were meant to achieve.
Sanusi’s silence could have been informed by the realisation that his banking reforms are skewed towards achieving aims that well known to him alone.
Without a clearer policy on the banks, Sanusi would have a tougher time explaining his reforms.

All the so called healty banks are sacking their workers, why? The “heathy” ones are rushing to the SEC to raise money, why?
Why did the CBN not take a holistic appraoch in its decision before embarking on the “reforms”.
All-in-all Uncertainties and lack of direction are not good for the markets.

adigun101:

Ladies and gentlemen.
Sanusi is our CBN governor and I think we have far gone past the stage of questioning his competence.
Right now we should be looking at the issues and not the individual.
We should all move on and learn to live with Sanusi banking sector whether we like it or not.
Unfortunately those of us that enjoyed the rejuvenation, modernisation and the boom in Nigerian banking under Soludo should just learn to live with Sanusi own idea.
Soludo banking apparently came with a cost but in the long run lets see which one we prefer.
Banks that grew at a very fast paling SA as sub-saharan African banking hub. All that is history.
I have moved on by taking all my money out of Nigerian banks, sold all my banking shares and have advised my clients to buy banking shares only as speculative investors.

I remember as a kid I saw Nigerians jubilating on the streets after a military coup only to witness the same  Nigerians dying for democracy.
It is only a matter of time we will learn.
Things are even going downhill faster than I predicted or anticipated.

Thanks for you excellent quote.

Truthfully, with Sanusi's actions, prospects are bleak for investments. For me, I'm moving on too. Don't care about my shares anymore.
I've changed my investment mode form a Long-term-Build-structures kind of mentality to a Short-term-Get rich-and-Get-out strategy.
The economic data resulting from Sanusi's actions are alarming. The impact might be worse than expected.

PapaBrowne:

Thanks for you excellent quote.

Truthfully, with Sanusi's actions, prospects are bleak for investments. For me, I'm moving on too. Don't care about my shares anymore.
I've changed my investment mode form a Long-term-Build-structures kind of mentality to a Short-term-Get rich-and-Get-out strategy.
The economic data resulting from Sanusi's actions are alarming. The impact might be worse than expected.

so your problem with Sanusi is motivated by the lost returns on your investments?

biina:

so your problem with Sanusi is motivated by the lost returns on your investments?  

Nope. Any body that made loses probably made them b4 the advent of Sanusi.

These motivate and spur my fury:
It is the damaging of potential prospects for the nation's economic future.
The crippling of what I call "High Finance" which is usually dependent on risky credit.
The catastrophic blow he has given to the term "risk".
The destruction of the entrepreneural spirit of the financial sector.
And the gusto in which he goes about in his ignorance.

PapaBrowne:

Nope. Any body that made loses probably made them b4 the advent of Sanusi.

These motivate and spur my fury:
It is the damaging of potential prospects for the nation's economic future.
The crippling of what I call "High Finance" which is usually dependent on risky credit.
The catastrophic blow he has given to the term "risk".
The destruction of the entrepreneural spirit of the financial sector.
And the gusto in which he goes about in his ignorance.

Nice list you have going, though I wonder to what end.
You would rather we continue with the facade of healthy banks, rather than face the music or do you think those banks were healthy?
Are you saying Nigeria and Nigerians would have been better off if Sanusi had done nothing?
It would have been interesting for Sanusi to have segregated those banks from the interbank market, and no more, then we would have seen if the likes of you would have put your money where you mouth seems to be.
Feel free to criticize his methods (though am yet to hear an effective alternative), but the bottom line is that Sanusi did not create nor engender the rot, he is simply trying to clear it up

!

^^^^^^
Biina,
You are too smart not to know that Sanusi's actions have done more harm to the nation in 3 months, than did the purported mismanagement of the CEO's do in 3years.
Many financial experts that supported Sanusi's actions in the beginning have begun to withdraw their support.
First , because the results of his actions are beginning to tell heavily on the whole industry. Secondly, because the guy has not even come out to tell anyone his plans for the financial sector and how he intends to recreate the confidence that has been lost as a result of his actions.

Go and ask Atedo Peterside whether he hasn't been impacted negatively by Sanusi's actions. He supported Sanusi's actions initially. His bank alongside the others have suffered immensely,

So Sanusi's actions has cost the sector over N1B in 3 months? cos thats how much those banks had cost the interbank market before the intervention
Sanusi made  it known that some banks were ailing and removed executives that had acted inimically in the sector. I ask should he have feigned ignorance and left said executives in office?
Is this the first time a bank executive has been sacked, or have we not have entire banks shut down in the past?
If you say Sanusi's actions were wrong, would imply that you know the right alternative that should have been taken. Can u let us hear them?
The bulk of the problems are from the actions of the sacked executives, and the likes of you who are spreading fear, doom and gloom about the sector.
Like his predecessors, leave him alone and let him do his job. After 5yrs, we will take stock and evaluate his tenure in office.

The question should never be about the man, but rather the issues and policies.
The banking sector has always been plagued by poor corporate governance and inflated books. For once in recent years, we have a CBN that is able and willing to fulfill its supervisory role, and the best some Nigerians can do is to criticize him for doing so. It seems they would rather we keep fooling ourselves that all is well. That is like the drunkard who decides it is better to avoid the imminent hangover by staying drunk
.

there are all sorts of life threatening illnesses are person can be suffering from without knowing

being hiv positive comes to mind.

a fellow can appear to be hale and hearty, until a a routine medical checkup

the doctor tells him he is hiv positive and just like that bam! everything has changed

if its nigeria, the fellow can lose his job, a lot of his friends etc . if hes like most of sanusi's critics, he will spend the rest of his days cursing ther doctor who diagnosed him - after all, before the diagnosis, life was rosy.

he may even go as far as to claim its an agenda so that someone else can take over his job.

he will not for once stop to think that his status may have come about as a result of his high risk lifestyle.

in the 90s there was a dot.com boom. it went bust, and a lot of pople lost money. moral for all those screaming they have lost money - stocks are nothing more than paper until you ash them. even before sanusi, the value of the stocks was already in freefall. sanusi is not to blame for your hanging in there in spite of all the warning signs.